How Charter and Comcast’s New Flex Streaming Venture Could Hurt Roku
Cable TV Giants Comcast and Charter Spectrum Have Tag Teamed to Take on Roku and Others
Roku has had a sweet deal going for a long while now with their free ad-driven streaming channel. Now that Comcast and Charter announced a special partnership to build a bundled Xfinity Flex streaming product, things could take a turn for the worse for the small Cupertino streaming company.
Increased Competition Could Further Erode Roku's Profits
Roku and several others could be in for a world of hurt with the recent announcement of a Comcast and Spectrum joint venture for a Next Streaming Platform based on Comcast Infinity Flex devices starting in 2023.
With Specturm and Comcast joining forces and as more of its customers are moving from a cable connected platform to a streaming TV platforms, along with specially bundled content. It can easily reaach a wider range of customers. The two cable giants joining forces, could cut further into Roku's profits by giving advertiser another avenue to spend their ad dollars.
Right now cord-cutters are faced with too streaming choices, and by bundling popular content from top streaming providers at a discounted price. It could entice more cord-cutters to spend a little more than subscribing to these channels and apps individually.
Along with Comcast and Charter, Roku will also be facing more pushback to its leading market share spot from another big player in the streaming TV industry. Apple recently announced they are also working on a lower-cost media player to directly compete with Roku, Google, and Amazon for cord-cutters. Currently, their Apple TV is so expensive, that many potential cord-cutters can easily pass it by in favor of a lower-cost Roku, or other brand media player.
With Apple's popularity and their iconic brand added to an affordable streamer, this could also cause a major headache for Roku and cost them sales. So this two front attack on their business, could end up pushing their stock price even lower.
Roku has already seen its stock take a significant hit from an all-time high last year. Apple has also been beefing up content on their super affordable ad-free streaming channels which is only $5/month.
War is an ugly business, and as the streaming wars heat up. The added competition will also affect other streaming TV players like Amazon and Google which have not had the success Roku has had with the total number of hours streamed on their platforms. And with some more big players aggressively entering the streaming TV market, more mergers and takeovers are possible for Roku and other smaller content providers. Especially for those who are not as financially able to sustain an extended streaming war, in a highly competitive market.
Right now cord-cutters are faced with too streaming choices, and by bundling popular content from top streaming providers at a discounted price. It could entice more cord-cutters to spend a little more than subscribing to these channels and apps individually.
The Streaming Wars Could Get Ugly For Roku in the Near Future
Along with Comcast and Charter, Roku will also be facing more pushback to its leading market share spot from another big player in the streaming TV industry. Apple recently announced they are also working on a lower-cost media player to directly compete with Roku, Google, and Amazon for cord-cutters. Currently, their Apple TV is so expensive, that many potential cord-cutters can easily pass it by in favor of a lower-cost Roku, or other brand media player.
With Apple's popularity and their iconic brand added to an affordable streamer, this could also cause a major headache for Roku and cost them sales. So this two front attack on their business, could end up pushing their stock price even lower.
Roku has already seen its stock take a significant hit from an all-time high last year. Apple has also been beefing up content on their super affordable ad-free streaming channels which is only $5/month.
War is an ugly business, and as the streaming wars heat up. The added competition will also affect other streaming TV players like Amazon and Google which have not had the success Roku has had with the total number of hours streamed on their platforms. And with some more big players aggressively entering the streaming TV market, more mergers and takeovers are possible for Roku and other smaller content providers. Especially for those who are not as financially able to sustain an extended streaming war, in a highly competitive market.
Both Comcast and Charter Spectrum have seen their profits erode not only by cord-cutting but also by cheaper high-speed broadband from Elon Musk's new satellite-based Internet. Broadband was their fallback, but now that it's being also threatened. Both companies have no choice but to reinvent themselves and join forces and push back. Or risk becoming insignificant in today's market.
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Use of third-party trademarks on this site is not intended to imply endorsement nor affiliation with respective trademark owners.
We are Not Affiliated with or Endorsed by Roku®, Apple, Google or Other Companies we may write about.
