Seeking Alpha

Ripple effect from potential Comcast-Apple streaming TV partnership

  • Shares of Comcast (CMCSA) move higher in early trading after a report breaks on advanced talks the company is having with Apple on a streaming TV service.
  • Speculation on a Comcast-Apple partnership for an over-the-top video service has been blowing in the wind for quite a while with Apple needing a managed service to deliver an online TV product. Analysts think if deal talks stall, it will be over which companies retains the most control over the customer relationship with the new service.
  • Sony (SNE) is the company which has made the boldest move toward an online TV service and will be watching the Apple-Comcast flirtation closely.
  • The development could also have some bearing on TV networks (CBS, DIS, AMCX, TWX, FOXA, VIAB, DISCA, MSG, SNI, CRWN) which could benefit if Apple comes knocking on their doors for rights to popular channels.
  • CMCSA +1.1% premarket
Comments (6)
  • scott trader
    , contributor
    Comments (5414) | Send Message
     
    Long apple Disney and disca ....great trifecta..
    24 Mar 2014, 09:25 AM Reply Like
  • The Growth Investor
    , contributor
    Comments (201) | Send Message
     
    I strongly agree that the $CMCSA - $AAPL partnership is good news for $DIS. I just wrote a research article about Disney http://seekingalpha.co....
    24 Mar 2014, 10:06 AM Reply Like
  • BillBrown
    , contributor
    Comments (266) | Send Message
     
    This is pointless. WHY would I buy ANOTHER product from Comcast, regardless if the "hardware" comes from Apple?

     

    I'm a cord-cutter. Yes, I still use Comcast for broadband, but I don't want it's cable tv product, and I have Netflix and iTunes and "off-brand" streaming sites for must-watch TV (if anything even counts as "much-watch" any longer).

     

    This Apple-Comcast tie-up is NOTHING. Just a lot of busyness by that layer of overheard just below the C-suite at Comcast, and probably some junior people at Apple.

     

    To think: I'm going to be asked to buy, from Apple, at a margin-premium, some new hardware ... which will entitle me to ... add $20-$30 a month (or more) to my Comcast bill.

     

    NO THANKS.
    24 Mar 2014, 12:48 PM Reply Like
  • brent999
    , contributor
    Comments (19) | Send Message
     
    Why are these talks between Apple and Comcast between "just below C-suite at Comcast" and "some junior people at Apple"?

     

    The report is heavily centered upon a "streaming tv service" not "hardware."

     

    I understand why you, along with others, do not want to pay a premium for your Comcast bill - or any bill. I'll withhold my judgment (regarding paying a premium for a Comcast bill) because I (and you) don't know what an Apple TV product will offer. The idea is that Apple/Comcast partnership would charge a premium if the service offered some premium experience.
    24 Mar 2014, 02:51 PM Reply Like
  • BillBrown
    , contributor
    Comments (266) | Send Message
     
    "you ... do not want to pay a premium for your Comcast bill -- or any bill."

     

    I wouldn't go that far. I'm fine paying for things, and I wasn't implying that I in any way "steal" or misappropriate content. I don't.

     

    Comcast and the cable industry do not wish to unbundle, because it will, to put a management consultant's spin on it, prompt "creative destruction". It would kill the cash cow that is bundled plans, and the cork would never go back into that bottle henceforward. Offering an "iCable" streaming product, under an Apple brand (with or without hardware) will not get far ... it will be a limited offering, designed to be a "toe in the water", and it will not resonate with consumers broadly. It will/would be thus another "U-Verse" or "Xfinity" thing that is an unwieldy brand, that won't be clearly understood by consumers, and will have limited appeal. Which will suit Comcast, Cablevision, etc. just fine ... because it's failure will be another "reaffirmation" of the existing pay cable model in its current form.

     

    Unless Apple does something radical like BUY Comcast, I don't see it playing out differently, no matter what the PR spin or coverage by half-informed, under-researched WSJ columnists.
    24 Mar 2014, 03:31 PM Reply Like
  • bcv166
    , contributor
    Comments (20) | Send Message
     
    How might content provides such as CBS benefit, or not, from this? CBS is down about 2% today. It may all come down to what the un-Supreme court decides.
    24 Mar 2014, 04:04 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs