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Xfinity X1 and Netflix Integration: Comcast’s Perfect Strategy For Defeating Cord-Cutting

Updated on December 28, 2016

Cable TV providers are having a tough time dealing with people who are putting aside cable TV services in favor of online streaming, a phenomenon dubbed as ‘cord-cutting’.

Comcast has found the perfect solution to stop cord-cutting in its tracks, we are talking about the company’s bold move to collaborate with one of their biggest competitor, Netflix! This move might seem surprising but was a much-needed breath of innovation for the industry.

The former rivals announced their plans during mid-2016, and made the following official statement, “Comcast and Netflix have reached an agreement to incorporate Netflix into X1, providing seamless access to the great content offered by both companies.”

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An official Comcast press release quoted the CEO, Neil Smit, as saying that the company is “excited to add Netflix to X1 and give our customers access to all the content they love in a way that has never been done before,”.

Meanwhile, Netflix also released an official statement by, Reed Hastings, the CEO, and Co-Founder of Netflix. The statement said, “The Netflix integration into the X1 platform means our mutual customers will no longer need to change inputs or juggle remotes. Now they can seamlessly move between the Netflix app and their cable service, enjoying all the TV shows and movies they love without hassle.”

Towards A More Integrated and Multi-Featured Xfinity Service

Comcast has heeded the call to arms and innovated its Xfinity X1 set-top box product by integrating Netflix into it Xfinity X1 service. Xfinity On Demand subscribers can now use Netflix without exiting out of the interface. No more hassles of switching inputs or remotes, Netflix can be accessed via a simple voice command.

The deal also gives Comcast an edge in the content distribution industry. Verizon, Dish, and Roku already offer integrated apps from Hulu and Netflix, whereas Comcast seemed to be lagging behind in this regard. However, they have pretty much closed the gap with this collaboration agreement. The long-term effect of having the Netflix app so easily accessible will slow down the cord-cutting rate and increase the revenue from Xfinity.

Here are the top three benefits that Comcast will see because of this innovative move:

  1. Subdued competition environment
  2. More stable subscriber base
  3. Reduction in scrutiny levels from regulators

How Does This Integration Benefit Xfinity and Netflix Subscribers?

The integration of these two services benefits the Xfinity On Demand subscriber base as well as Netflix users.

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Here are a few of the major advantages entertainment fanatics can expect.

  • No need to juggle more than one remote or change inputs
  • Binge watch your favorite televisions shows from beginning via Netflix and move seamlessly to the latest episode on Xfinity
  • Xfinity users can send a voice command (“Netflix”) to their X1 voice remote to access Netflix
  • Browse both Xfinity On Demand and Netflix libraries from the same interface
  • Search queries for actors will fetch results from both libraries

What’s In It for Netflix?

By now you might be wondering how Netflix benefits from an increase in the Xfinity subscriber base. Comcast. About 30% of Comcast subscribers use the Xfinity service, a large user base that Netflix hasn’t tapped yet. The recent integration gives Netflix access to this new segment of subscribers. Comcast will also be more open to sharing content with the online streaming giant.

Moreover, this isn’t the first time Netflix has collaborated with a cable operator. It already has deals with smaller cable operators as well as a few Internet TV services, such as Google’s Chromecast, Roku and Apple.

Comcast’s Aggressive Growth Strategy for 2017 and Beyond

With the continuous rise in popularity of SVoD (Subscription Video on Demand), traditional cable providers have to come up with better products to entice millennials, Comcast seems to have hit the right note with this integration.

The X1 set-top box had already proved to be a game changer for the media giant. With the recent integration of Netflix into their Xfinity X1 services, the company is set to gain more subscribers and revenue in the coming year.

The long-term strategy for Comcast focuses on growth through better customization. At a recent UBS Global Media and Communications Conference, the company stated they plan to handle growing competition by letting market segmentation and content investment drive their product offerings. Comcast also plans to acquire “TV Everywhere rights” and “stacking rights.

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