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How is Comcast ’s ( CMCSA ) $15-per-month Web-based TV service, called Stream, doing? Comcast, the nation’s biggest cable TV firm, launched Stream in Boston and Chicago last quarter. Comcast’s Stream service targets broadband-only homes, mainly millennials who have never subscribed to pay TV services. No set-top box is required, and Stream works with Apple ( AAPL ) TV, Roku and other devices. With Stream, Comcast got the jump on Apple, which has been delayed in launching its expected Web TV service. Comcast included Stream subscribers in its surprising 89,000 net video subscriber additions in Q4. But Comcast did not break out how many Stream subscribers it has. “Stream is in the numbers, but I don’t think it moves the needle a lot,” UBS analyst John Hodulik told IBD in an email. Comcast has stated plans to bring Stream to its entire cable TV territory in 2016. Comcast’s Stream service includes the major live broadcast networks — ABC, CBS, NBC and Fox — along with HBO and local TV channels. Comcast Cable CEO Neil Smit, on the company’s earnings conference call Wednesday, said “it’s probably too early to say what it (Stream) will be, what it will turn into over time. But we feel good about the usage and good about the product. It’s a good value proposition for the customer, and we’ll continue to roll it out to other markets.” Comcast May Face Net Neutrality ‘Issue’ The Federal Communications Commission is likely curious about how Stream is doing in hard numbers, given that the agency has been asking questions about the Web service related to its net neutrality rules. The problem, according to critics, is that Comcast does not count its own Stream service toward the monthly data caps of its broadband customers. Comcast says the Stream service is not a net neutrality issue because the service uses IP technology over its own network, not the public Internet, to reach households. A federal court is expected to rule on the FCC’s net neutrality rules in April. The agency’s clout could again be gutted — or not, which might lead to more enforcement of the new net neutrality rules. Comcast joins Dish Network ( DISH ) in mashing new Web streaming video subscribers along with traditional pay TV customers in earnings reports. In Dish’s case, new subscribers to its $20-per-month Sling Web TV service have helped offset its loss of satellite TV customers. Dish discussed Sling subscriber additions for the first time when reporting Q2 earnings in early August. Sling had 240,000 subscribers as of June 30. Dish Network did not update Sling’s subscriber total when reporting Q3 earnings. Goldman Sachs has forecast that Sling could hit 2 million by the end of 2016. For Comcast, Stream numbers might be more material by the time it reports Q1 earnings. Comcast’s 89,000 video subscriber additions in Q4 were way up from 6,000 in the year-earlier period. Aside from launching Stream, Comcast has also stepped up its promotion of lower-priced skinny bundles, with fewer TV channels and broadband-first promotions to college students. Analysts say its deployment of Internet-ready X1 set-top boxes and improved customer service have improved video subscriber results. On Comcast’s earnings call, Smit played down the impact of lower-revenue skinny bundles. He said 75% of video subscribers added in the December quarter had “higher-end packages.” Scalper1 News
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