Amazon (NASDAQ:AMZN) and Comcast (NASDAQ:CMC) are joining forces in what should be a mutually beneficial partnership.
Amazon Cable Store, a new section of Amazon.com that has just debuted, is reselling Comcast's television and Internet services, according to TechCrunch. Users can sort different packages that include Internet-only deals and hybrid Internet and TV bundles, and then schedule an installation at the same rate Comcast currently charges.
The e-commerce giant could use this partnership to market itself as the go-to location for cable subscriptions, particularly skinny bundles. The Comcast deal also lays the groundwork for Amazon to partner with other cable companies, which would open up a new revenue stream for Amazon.
Furthermore, the Amazon-Comcast partnership offers a chance for a content-licensing agreement in which Comcast's content appears on Amazon Prime, though this is strictly speculation at this point because details on the partnership are scarce.
The deal could also help Comcast because it increases the company's exposure to a digital audience as cable subscriptions continue to decline.Amazon.com logs about two billion visits each month, according to SimilarWeb.
Comcast also has been criticized for its customer service, but those who sign up through Amazon will have access to the e-commerce company's customer service through phone, email, chat, and social media channels.
The partnership between Amazon and Comcast is another way that cable companies are adjusting their strategies as cable subscriptions continue to decline. The rise of skinny bundles and subscription services such as Netflix and Hulu have led some to question if traditional pay-TV even has a place anymore.
Margaret Boland, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on subscription video on-demand services that examines how the growth of SVOD is coming at the expense of the pay-TV industry. The report analyzes the state of the pay-TV industry and maps out which demographics are more likely to stop buying traditional TV packages.
The report also discuss the user base, original content offerings, and subscription models of the major subscription streaming services available today, including Netflix, Hulu, and Amazon Video. Finally, it looks at how traditional pay-TV companies and premium channels like HBO and Showtime are addressing the shift to digital viewing, as well as the implications of their response for advertisers.