The Xumo streaming service was recently purchased by Comcast. The Xumo streaming service was initially owned by Panasonic and Meredith Corp., and the service is supported through advertising revenue. A spokesperson for Xumo commented on the acquisition, "We are excited for this team to join Comcast and look forward to supporting them as they continue to innovate and develop their offerings."
It was also made apparent that Xumo will continue to operate independently, however, it will be a part of the Comcast business operation. The exact details of the acquisition were not made public but it is speculated that it will cost Comcast approximately 100 million USD.
Purchasing a streaming service will help Comcast adjust to declining cable subscriptions, and increased online streaming.
Image Credit: Xumo
What's Driving This Trend
- Streaming Service Consolidation
- As companies like Comcast purchase smaller streaming services, consolidation in the streaming industry could lead to new opportunities for innovation and growth.
- Alternative Revenue Models for Streaming Services
- With Xumo's revenue coming entirely from advertising, other streaming services may explore alternative revenue models that rely less on subscription fees and more on advertising revenue.
- Hybrid Cable and Streaming Services
- As cable subscriptions continue to decline, cable companies like Comcast may find success in creating hybrid cable and streaming services that bridge the gap between traditional cable and online streaming.
Who This Affects Most
- Streaming Services
- As the streaming industry continues to evolve, there is an opportunity for companies to innovate in areas like alternative revenue models and consolidation.
- Cable Providers
- As cable subscriptions decline, cable providers may need to explore new business models that incorporate online streaming and other alternative revenue streams.
- Advertising
- As advertising becomes a larger source of revenue for streaming services like Xumo, there is an opportunity for companies in the advertising industry to innovate and develop new advertising strategies for the streaming space.
