Are we entering the age of the streaming bundle? As more streaming video outlets consolidate their offerings in a bid to get cash while not alienating their entire market with constant price hikes, we’re seeing more of these bundles available. And Comcast (NASDAQ:CMCSA) is one of the latest such offerings. It didn’t prove much help with investors, though, as the telecommunications company was up fractionally in Tuesday afternoon’s trading.
Comcast, perhaps seeing the writing on the wall as far as its linear television business goes, is getting together with Netflix (NASDAQ:NFLX) and Apple (NASDAQ:AAPL) TV to combine them, along with Comcast’s own Peacock, into an all-in-one bundle. Oddly, Comcast wouldn’t mention what the price of said bundle would be or what kind of discount it would represent over just buying any one of the three or a combination therein separately.
Since the latest earnings report at Comcast notes that linear television is dying—it lost around 487,000 subscribers just in the first quarter—that makes it clear something had to be done. Comcast’s online operations, though, are picking up; wireless customers surged to 6.9 million lines, adding 21% in the same period.
A Growing Push for Value
With the recent string of price hikes seen in the field, it’s little surprise that customers are looking for ways to save money, especially as inflation continues to run roughshod over pretty much every part of consumers’ operations. Seeing more bundles makes some sense; more content, more value, more reason to buy in. But again, prices are going to be a factor here too. Even with the expanded lineup of options, a significantly-increased price for a bundle will still weigh heavily on customers. Plain and simple: everyone wants a deal today.
Is Comcast a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CMCSA stock based on nine Buys and seven Holds assigned in the past three months, as indicated by the graphic below. After a 1.43% increase in its share price over the past year, the average CMCSA price target of $47.59 per share implies 19.66% upside potential.
