Consumers will start seeing Comcast X1-powered TV in Walmart stores very soon if information from The Wall Street Journal is anything to go by. The newspaper reports that the telecommunication company is already in talks with the retail giant in what seems like a potential partnership to develop and distribute TV sets that run Comcast software.
Although details of the deal are sketchy at this point, the report has it that Walmart will get a chunk of recurring revenue from Comcast, while the TVs could bear the retailer’s ‘Onn’ brand name. However, a third-party will probably manufacture the TVs for the two companies.
Walmart is keeping mute about the deal, and Comcast said it was exploring her options, Engadget reports.
“We’re constantly having conversations with current and new suppliers about innovation and new products we can bring to our customers, and we don’t share details of those discussions,” Walmart spokesman revealed when pressed for comments.
“We’re early days, but we’re looking at smart TVs on a global basis, and we’re wondering – can we bring our same tech stack for certain capabilities in aggregation to consumers who are relying more and more on smart TVs?” Comcast Chief Executive Brian Roberts said during a conference back in September.
If the deal eventually pulls through, Comcast will be facing tough competition from an already saturated marketplace, which has the likes of dominant players such as Amazon, Apple, and Roku. However, that may not be too tough to overcome as it gives the company the chance to focus outside of its US markets where its cable TV is already doing well.
This is an opportunity for Comcast to shift sight from traditional cable TV that is fast losing its appeal. The company has lost 1.2 million cable TV subscribers so far this year. However, the same cannot be said of its broadband access business, which gained a whopping 1.4 million customers, even amidst the coronavirus pandemic.
It also gives the company the chance to drive its subscriber base for its Peacock’s streaming services.
Walmart would also be benefiting hugely from this deal. It is already in partnership with Roku, with several Onn-branded TVs running the Roku OS stocking its shelves.