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Comcast's New Internet, Streaming Video Deal

NEW YORK ( TheStreet) -- Comcast (CMCSA - Get Report) is reportedly introducing a new package of services to better serve customers who reject the idea of having to pay for expensive features they don't really want.

Forget the current trend offering Internet/cable TV/phone packages with ever-increasing monthly fees. The new "Internet Plus" grouping features high-speed Internet access, a small grouping of local broadcast/basic cable television stations, Comcast's own video-on-demand service as well as Time Warner's (TWC) HBO and HBO Go.

Shares in Comcast were advancing 0.26% to $47.89 in New York on Friday.

According to a story from DSL Reports.com the new bundle will give users up to 25Mbps broadband services, 20 channels of "Limited Basic" television stations, access to Comcast's year-old "StreamPix" video-on-demand service, HBO and HBO Go.

For the first 12 months, Comcast will offer the new deal for $40 to $50 per month. After a year the promotional price will rise to $60 to $70 for six more months. The service may jump another $10 after a year and a half. The company offers Internet-only service in those same markets starting at $30 per month.

Internet Plus will reportedly be available only in a limited number of markets, at least for now.

This new grouping is aimed squarely at Comcast's Internet customers who also subscribe to Netflix (NFLX). While Netflix charges $8 per month for its standalone service and Comcast rival StreamPix costs only $5 per month, the idea is to keep customers locked-in to buying service from one provider.

In recent months, Comcast has tried adding monthly Internet usage limits as well as overage fees to force customers to think twice about how often they use resource-hungry, third-party streaming services like Netflix.

Although HBO executives have gone on record as being staunch supporter of large bundles in the past, this will be the first time HBO has agreed to being paired with smaller, less expensive broadcast/cable packages. The move could ultimately lead to similar deals with other cable TV and streaming video providers.

Written by Gary Krakow in New York.

To submit a news tip, send an email to tips@thestreet.com.

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