Comcast's (CMCSA) Xfinity Drops MSG Network Over Fees Dispute
Comcast's (CMCSA) Xfinity cable TV service sheds Madison Square Garden Entertainment's (MSGE) MSG Network from its bouquet of channels over a fees discrepancy.
Comcast Inc.’s CMCSA shares have returned 8.4% in the year-to-date period compared with the Zacks Cable Television industry’s rally of 10.1% as it persistently suffers video-subscriber attrition due to cord cutting.
The company’s Xfinity cable TV service recently dropped Madison Square Garden Entertainment’s (MSGE) MSG Network from its channel lineup as it disapproved proposals related to the current deals offered by the channel authorities.
According to Comcast, MSG is demanding formidable fees for some of the sports content, which has low viewership in the country.
The company might be able to reduce its costs by dropping less-viewed feed from its lineup but it stands the risk of losing sports viewership on its platform. This is because New Jersey and Connecticut sports fans will be deprived of the live coverage of sports matches of franchises like New York Knicks, New Jersey Devils, New York Rangers and New York Islanders of National Basketball Association and National Hockey League, respectively.
Comcast Corporation Price and Consensus
Comcast’s Growing Efforts to Win Flex, Xfinity X1 Customers
Comcast made an announcement for the launch of XiOne, the wireless streaming device in the United States for the existing customers of Xfinity Flex (internet television service of Comcast), which is already available in Italy and Germany to Sky Q consumers.
This will be available for the subscribers of Comcast’s Xfinity, Sky services and also its service partners, provided with WiFi 6, 4K UHD, HDR, Dolby Vision and Dolby Atmos systems and a voice control remote, for a convenient content search.
Moreover, through XiOne, new streaming products will get launched in the market, which in turn, will strengthen the company’s content base.
Effectv, the advertising sales division of Comcast Cable launched an opportunity for service providers to advertise their content through Xfinity X1 (digital video streaming device) of Comcast. Effectv clients will be able to reach their intended audience across the United States with various brand contents on offer.
The primary purpose of this opportunity is to expand the OTT TV content and viewership. The Effectv clients will produce long-term and short-term content for the viewers and showcase it through Xfinity X1.
Moreover, the currently Zacks Rank #3 (Hold) company recorded $28.55 billion revenues in the second quarter of 2021, up 20.4% from $ 23.71 billion registered in the second quarter of 2020, which is likely to grow in the near term too owing to its strong content lineup from networks and studios like NBC, Bravo, USA Network, CNBC, Golf Channel, Universal Kids, CBS, available on the Peacock streaming service despite stiff competition from the likes of Netflix NFLX, Disney's DIS Diseny+ and Apple's AAPL Apple TV+ among others. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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