Arris gets 15%-20% of biz from Comcast, but won’t be hurt by Xfinity TV app moving to Roku, analyst says

Arris STB
Comcast will reportedly offer a $2.50 credit to customers who use the Roku as their primary video device in lieu of a pricey leased set-top.

Arris investors overreacted to news that one of the vendor’s leading clients, Comcast, will begin enabling its set-top environment on connected devices, Raymond James analyst Simon Leopold said in a note to clients. 

“The market has reacted as if the news was new or unexpected. Most, including us, see the traditional set top box (STB) as challenged, but offset by the deployment of next generation IP gateways and media boxes along with the infrastructure to support them, and today’s release does not alter our view on the trajectory," Leopold said.

Multichannel News was first to report on Leopold’s memo. 

Sponsored by Signiant

BIG FILES, BIG CHALLENGES: Why Dropbox, FTP and shipping hard drives are no longer viable for media and what you can do about it

Large file transfer software — SaaS that makes it easy to move any size file with speed and security, no matter over what distance — is essential to your media business. Read this paper to learn why you should move on to a next-generation solution.

RELATED: Comcast’s Xfinity TV app begins beta test on Roku devices

On Tuesday, Comcast announced that its Xfinity TV app is in beta testing on select Roku devices. 

Previously, Comcast’s multiscreen video app has only been available on iOS and Android mobile devices. This is the first time that the app, which allows customers to experience their full cable package without using a proprietary Comcast set-top, has been available on a connected TV device. 

Comcast announced plans to do this back in April of last year. 

“There is nothing new about the app-based approach to delivering video,” Leopold said. “During 2016, the cable TV industry proposed an app-based approach to address concerns raised by then FCC Chairman Wheeler. The FCC’s new Chairman Pai has scrapped the regulatory effort, but as we said last year, the industry was already evolving even without the regulatory efforts.” 

What is new, however, is a tidbit in the Leopold report: Comcast will reportedly offer a $2.50 credit to customers who use the Roku as their primary video device in lieu of a pricey leased set-top. 

Another interesting tidbit: The analyst said Arris gets 15% to 20% of its revenue from Comcast.


Suggested Articles

FierceVideo is putting together an Emerging Leaders feature, and we’d love to consider somebody from your organization.

Fastly announced Origin Connect, a direct private network connection between an organization’s origin server a Fastly Shield point of presence (POP).

Haivision launched Haivision Play Pro, a free mobile player.