Comcast Debuts Perplexing Streaming TV Service

It seems as if nearly every media company is experimenting with standalone streaming platforms. From skinny cable OTT offerings like Sling TV to CBS Access and HBO GO, most media giants realize that many of their customers are interested in having the ability to stream their favorite programs.

Cable and broadband mega-corporation Comcast is testing the streaming television waters with a new service called "Stream." For $15 a month, subscribers will be able to stream 10 live channels, including all the major broadcast networks. They'll also have access to HBO and HBO On Demand, as well as the Comcast movie service Streampix and a 20-hour cloud DVR system.

While it's always good to see another player join the OTT space, it's a perplexing mix of business models and revenue streams. You have to be a current Comcast broadband customer to subscribe to Stream and I suspect that has something to do with its current programming deals. And while having access to the live local broadcast channels is great, only offering HBO seems like an odd choice. A $15 a month fee means that you're essentially getting the local channels for only a couple of bucks a month. But the lack of any other cable channels - even relatively inexpensive ones - seems like a self-limiting decision. Stream also can only be viewed through an app, which means you can't watch it on your television via Roku or Apple TV.

In an interview with the NY Times, Matthew Strauss, Comcast Cable's vice president and general manager of video services, said that in the future the company may offer additional bundles of programming for an additional monthly fee. But he suggested that customers looking for additional cable networks should really just subscribe to one of Comcast's smaller cable bundles. 

That comment is really at the heart of what's wrong with Stream. Comcast doesn't want to launch a product which in some way might cost its core cable business customers. So it handicaps itself by releasing a product that's just innovative enough to be frustrating but not disruptive enough to be a success.

Stream will be rolled out to Comcast subscribers in Boston later this summer, with additional cities being included throughout the winter.