PHILADELPHIA, Pennsylvania â€“ Free streaming service Xumo is reportedly being eyed by Comcast NBCUniversal for an acquisition; the latter had begun talks with Xumo’s owners, Panasonic and Meredith Corporation, in late December of 2019.
Primarily ad-supported, Xumo provides its users with free movies, premium channels, and regular TV programming on over 30 platforms. It has been several months since its release on the market and has previously worked with Comcast, further adding credence to the probable acquisition.
This previous cooperation came in the form of Xumo included on Comcast’s Xfinity X1 cable box.
However, any terms of details of an acquisition deal have, as of yet, not surfaced. Neither Xumo, its owners, nor Comcast has given comments on the future plans.
Experts who’s observing the proceedings have commented that the move by the Comcast’s intended to diversify its revenue sources and demographics. In response to the subscribers lost due to the rise of cord-cutting.
Leichtman Research Group had found that Comcast had lost 238,000 cable subscribers in 3Q2019. While it gained more broadband customers (379,000) than was lost in cable, the loss due to the number of cable customers unsubscribing is considered substantial.
Xumo’s advertising revenue could put a stopper to this loss and more, given its 5.5 million monthly users, as reported by Fierce Video in 2019. It represents a year-over-year growth rate of 300%, just in 1Q2019.
Xumo aimed to increase the amount of time for its users to streamed by 400% as soon as the year 2019 ended. We have yet to hear the report on the results of their efforts. However, given their remarkable growth rate, it would stand to reason that they have achieved this goal, if not surpassed it.
That, along with its white-label streaming service, could add a considerable amount of income to Comcast’s overall revenue.