Xfinity Flex, Comcast’s streaming box/platform for broadband-only subscribers, has grown within its U.S. footprint and it could soon outside of it.
During Comcast’s fourth-quarter earnings call, Comcast Cable CEO Dave Watson reacknowledged his company’s interest in deploying an X1/Flex-like operating system on smart TVs globally. He also said Comcast is working on a common software stack for Flex with European pay TV operator Sky.
“We talked about going to smart TVs but really it’s about leveraging unique scale internationally whether it’s a device or a software solution,” Watson said. “Right now, it’s working great within the footprint but we’re building out plans beyond that.”
Watson said that Xumo, the ad-supported streaming technology company Comcast acquired in 2020, has helped with realizing advertising revenues through Flex. The platform also brings in money through revenue splits with third-party apps like HBO Max, which launched on X1 and Flex in December, and Disney+, which Comcast said is coming to Flex in the first quarter.
Peacock, NBCUniversal’s ad-supported/subscription streaming service, launched nationally just over six months ago but first showed up for Comcast subscribers on X1 and Flex in April 2020. Peacock has now reached 33 million sign-ups and Comcast CEO Brian Roberts partly attributed the service’s early momentum to Flex.
“We’re seeing other programmers are approaching us with their content and seeing what both the X1 platform and Flex platform can do for them,” Roberts said. He added that Comcast is looking at other ways to take advantage of its scale combined with the Flex platform. “I think we’ll have more to talk about throughout the year.”
In September, Comcast said that it had more than 2 million Flex boxes deployed – up from one million in May 2020. At the same time, Roberts expressed interest in moving X1/Flex onto smart TVs.
“We’re early days but we’re looking at smart TVs on a global basis, and we’re wondering if we can bring our same tech stack and certain capabilities in aggregation to consumers who are relying more and more on smart TVs,” Roberts said in September.
According to a Wall Street Journal report last year, Comcast and Walmart are discussing a deal where Walmart would promote smart TVs running Comcast’s platform in exchange for a share of the recurring revenue they bring in. A third-party manufacturer could end up making the TVs, which could carry Walmart’s Onn branding.