From a technology and content rights perspective, launching a nationwide OTT service wouldn't pose a problem for Comcast, but Comcast Cable CEO and president Neil Smit said his company wasn't convinced it was the right business model.
On Comcast's first quarter earnings call Wednesday morning, Smit was asked during the Q&A portion of the conference call about AT&T's planned launch sometime this year of its "DirecTV Now," OTT service. (See AT&T Intros New OTT Video Services.)
"So on the AT&T announced product, there's no reason we couldn't do something similar from a technology perspective or a rights perspective," Smits said, according to a Seeking Alpha webcast of the conference call. "We just have to get the rights and deploy the product. We thus far haven't seen an OTT model that really hunts, but we'll continue to stay tuned into the market and be prepared to respond accordingly."
With the addition of 53,000 video subscribers in the first quarter, Comcast has gained video customers the past two quarters, which, for now, goes against the perception that cord cutters are killing off its video business. With the first-quarter additions, Comcast now has 22.4 million video subscribers. (See Comcast Can't Be Beat on Broadband.)
To keep customers from wandering over to the OTT pastures, Comcast Corp. (Nasdaq: CMCSA, CMCSK) has a vast TV Everywhere library. It also has its Stream service, which is paired with a broadband tier, that allows customers to watch video content on web and mobile platforms without a traditional set-top box or gateway in their homes.
— Mike Robuck, Editor, Telco Transformation