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Aggressive promotions by Comcast ( CMCSA ) tied to its rollout of Xfinity-branded TV services and X1 set-top boxes will boost first-quarter video subscriber additions, says a bullish Macquarie Research research report. Analyst Amy Yong forecasts that Comcast, the nation’s No. 1 cable TV firm, will post a net add of 32,000 video customers in Q1, compared with an 8,000-subscriber loss in Q1 2015. At a Morgan Stanley conference on March 1, Comcast CEO Brian Roberts signaled that the company could have a strong Q1. Comcast has been promoting X1 “double-play” bundles that offer TV and broadband for $80 monthly, plus taxes and fees, and triple-play packages that include phone services and start at $90 monthly, says the Macquarie analyst. “We are increasing our Q1 video net add assumptions to 32,000 from (minus) 1,000 on the back of recent commentary,” wrote Yong. “Management continues to reinvigorate the product set by rolling out X1 double/triple play starting at $80 per month and $90 per month, respectively. Other current initiatives include Xfinity Internet+ Premium Streaming for $45 per month.” Comcast stock was flat in morning in the stock market today , near 60. Comcast shares are up 6% in 2016 but are down 8% from their all-time high of 65, touched last July. Worries that Comcast will spend big to buy airwaves in a government auction of radio spectrum have been a stock overhang. Comcast has an IBD Composite Rating of 88 out of a possible 99, putting it among the top 12% of all stocks on such metrics as sales and earnings growth. Comcast lost 36,000 video subscribers in 2015, but it gained 89,000 in Q4, marking its best quarter in nine years. The gains have come despite continued cord-cutting by young adults, who have shifted to Internet video from providers such as Netflix ( NFLX ). Some 30% of Comcast’s video customers — more than 7 million — were using X1 set-top boxes as of Jan. 1. By year-end, Comcast expects at least half of its 22 million video subscribers will be using Internet-ready X1 set-top boxes in their homes. The X1 entertainment platform provides access to live broadcast, on-demand video and DVR-stored content. DVR-stored content is in the Internet cloud, not the set-top. Analysts say that Comcast has put a lot of work into developing a cloud-based TV channel guide and user interface, a voice-controlled remote, programming recommendations, on-screen sports app and social media features for sharing video. Amazon.com ( AMZN ) last week said that it would resell Comcast services at a new online cable store. “On the promotional side, we see the deal with Amazon.com as another creative distribution outlet,” added Yong. Scalper1 News
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