Yesterday Comcast officially purchased the free streaming service XUMO TV after reports of its interest recently leaked. This comes a year after Pluto TV was purchased by what is now ViacomCBS, and there are even reports that FOX is looking at buying the free streaming service Tubi. Add in the fact that Amazon and Sinclair have both launched free ad-supported streaming services in the last year and it seems like free streaming services have become very popular all of a sudden.
So, what does this mean for cord cutting? Should cord cutters be worried? Let’s take a look…
Why is Comcast buying XUMO?
What we are seeing here is the impact of cord cutting on Comcast and other companies. As cord cutting grows, companies like Comcast are looking for new revenue sources. Right now, the fastest growing segment of cord cutting is free ad-supported streaming services. So, companies like Comcast are trying to buy their way into how Americans are watching TV.
What does Comcast buying XUMO mean for the future of XUMO?
It seems that Comcast wants to use XUMO to have a platform to help monetize its back catalog of NBCUniversal programming. Soon Comcast will be launching a free streaming service with a paid tier called Peacock. XUMO will likely become a huge part of powering Peacock’s free tier.
Look for Comcast to take advantage of the content on XUMO plus its platform to help build its new Peacock streaming service. Also look for more NBCUniversal content to show up on Peacock in the months to come.
What does this mean for cord cutting?
What we are continuing to see is the maturing of cord cutting. As cord cutting grows, more companies are paying big to buy their way in. The question now is how will cord cutters react.
Many seem worried that cord cutting services like XUMO will start to charge; yet Comcast, Sinclair, ViacomCBS, and others have said they plan to not only keep these services free but add more content to them.
For now, cord cutters should expect more free options to launch. Current free streaming services seem to be getting more content from content owners. All of this, in the end, is good news for cord cutters.
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