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Rogers Communications (RCI) Drops IPTV for Comcast's X1

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Canadian cable behemoth Rogers Communications Inc. (RCI - Free Report) recently announced plans to dump its Internet Protocol TV (IPTV) platform and adopt Comcast Corp.’s (CMCSA - Free Report) cloud-based X1 video platform. With this, Rogers Communication will be the third cable operator in Canada after Shaw Communications Inc. and Cox Communications to shift to the X1 platform. Also, this adds to the growing list of Canadian cable operators MSOs that have dropped their proprietary IPTV plans. In 2014, Cogeco had scrapped its IPTV project and partnered with TiVo Inc. instead after facing performance-related problems.

The Switch to X1

Prior to the switch, Rogers Communications had heavily invested in the development of its IPTV platform. However, the company has been facing difficulties in upgrading the platform using the latest technologies. After suffering losses recently, Rogers Communications has decided to opt for the popular X1 platform.

Benefits of X1

Comcast’s next-generation web-capable X1 platform offers a hybrid IP/QAM video gateway with an advanced user interface and the ability to port third-party apps that tie into a cloud-based infrastructure. X1 is a cloud-based TV guide which includes recommended web videos and a new mobile application. Using the powerful X1 platform, Rogers Communications aims to provide its customers with an advanced seamless and connected TV experience, at home or outside..

Price Performance

 

Year to date, the Zacks categorized U.S. Cable Television industry has registered growth of 17.91%. However, Verizon’s 10.71% lags the industry mark. The company’s newly launched cost-effective, simple and competitive IaaS Cloud services and Rogers Unison (a new mobile solution) have boosted its postpaid wireless and Internet subscriber base. However, intense wireless and cable TV industry competition, continuous softness in the advertising market and loss of viewers to video streaming service providers remain potent headwinds. Rogers Communications currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

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