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Comcast Corporation just got the rights from cable network owners to offer up channels in areas where it doesn’t sell its service, reports Bloomberg.
While Bloomberg reports it has no immediate plans to go beyond its territory, but the deal, which was described as a “back-up plan, means Comcast could start selling content packages for online streaming in cities like New York where it doesn’t have a footprint.
“When you really try to evaluate the business model, we have not seen one that really gives us confidence that this is a real priority for us,” Matt Strauss, evp of video services for Comcast said in November. “There is significantly more upside and profitability in going deeper and deeper into our base first versus following a video-only offering OTT.”
Accumulating nationwide rights gives Comcast a hedge in a changing world where internet services like Dish Network Corp.’s Sling TV and AT&T Inc.’s DirecTV Now are proliferating. Comcast’s cable unit accounts for 62 percent of total revenue, with the rest coming from NBCUniversal, according to Bloomberg data. Video represents about half of the cable unit’s sales.