Rumor: Comcast Plots OTT Stealth Attack
The plan is likely predicated on the NBC Universal merger going through, because that would give Comcast the content to interest consumers outside its territory. (See Comcast to Take Control of NBC Universal and Web TV Takes a Crack at Comcast-NBCU Union .)
It would work like this: Comcast would provide a small box that receives content via the Internet and displays it on the TV. This would let Comcast provide over-the-top TV service in areas such as Los Angeles, which is covered in part by Time Warner Cable Inc. (NYSE: TWC). The key, though, is owning the content to make it work; otherwise, who's going to bother to install that box?
The box doesn't exist yet, but the source says potential vendors are already working on it, at least on the software side.
Even if Comcast's plan doesn't come to fruition, our source is convinced one of the other operators that have corporate ties to content or own it outright -- such as TWC or Cablevision Systems Corp. (NYSE: CVC) -- will try it. They certainly must be aware of the possibility.
— Craig Matsumoto, West Coast Editor, Light Reading