Mumbai: Charter Communications, Inc and Comcast Corp on Thursday announced a formation of a 50/50 joint venture to develop and offer a "next-generation" streaming platform.

Comcast will license Flex, its aggregated streaming platform and hardware to the joint venture, contribute the retail business for XClass TVs and also will contribute Xumo, a streaming service it acquired in 2020. Charter will make an initial contribution of $900 million, funded over multiple years.

The service will be available on a variety of branded 4K streaming devices and smart TVs, all the top apps, and more choice in the streaming marketplace. The joint venture will offer app developers, streamers, retailers, operators, and hardware manufacturers the opportunity to reach customers in major markets across the country with the platform.

The XClass TVs will be available through national retail partners and potentially direct from Comcast and Charter to provide more customer choice. Xumo will continue to operate as a free global streaming service available through the joint venture’s products and third-party devices. Charter will offer the 4K streaming TV devices and voice remotes beginning in 2023. Comcast will continue to offer the Flex streaming platform as a streaming device and service to its customers.

"We’re thrilled to partner with Charter to bring this platform and its award-winning experience to millions of new customers,” said Comcast Cable CEO Dave Watson. “These products are all designed to make search and discovery across live, on-demand and streaming video seamless and incredibly simple for consumers. This partnership uniquely brings together more than a decade of technical innovation, national scale and new opportunities to monetise our combined investment.”

The joint venture’s products will give consumers a state-of-the-art streaming experience to access their favorite apps, based on Comcast’s Flex product, which currently delivers all the most-watched streaming apps in the marketplace. The products will feature hundreds of free content choices through Xumo, a free, ad-supported service currently delivering more than 200 unique streaming channels. Peacock also will be featured on the joint venture’s streaming platform, alongside other popular apps.

The closing of the joint venture is subject to customary closing conditions. This joint venture does not involve the broadband or cable video businesses of either Comcast or Charter which will remain independent.

“Our new venture will bring a full-featured operating platform, new devices, and smart TVs with a robust app store providing a more streamlined and aggregated experience for the customer,” said Charter chairman and CEO Tom Rutledge. “As the video landscape continues to evolve, this venture will increase retail consumer options, compete at scale with established national platforms, and join our existing lineup of options for the Spectrum TV App available on most customer-owned streaming devices.”