By Helen Coster and Munsif Vengattil
(Reuters) - Comcast Corp (O:CMCSA) said on Wednesday it will offer internet customers a free streaming media set top box that works with other services, stepping up competition with Roku Inc in the market for a device that organizes multiple subscriptions.
Roku's (O:ROKU) stock tumbled nearly 14% and was on track for its worst one-day loss since March as investors reacted to the increased competition against the Silicon Valley company's own streaming products. Roku's stock has surged over 300% in 2019 and recently traded at almost 13 times expected sales, according to Refinitiv data.
Comcast said internet customers who had paid $5 per month for the Xfinity Flex now would get it for free
"We are having a tough time justifying Roku's valuation, especially facing such substantial competitors as Amazon, Apple and Google (NASDAQ:GOOGL). Now you can add Comcast," said Loop Capital analyst Alan Gould, who recommends selling shares of Roku.
Comcast's Xfinity Flex is part of a broader trend to simplify the experience of watching shows on multiple streaming services. The product allows customers to browse and search for programs from the likes of Netflix Inc (O:NFLX), Hulu and Amazon.com Inc's (O:AMZN) Prime Video, as well as free shows and movies that Comcast will include with the set top box.
Apple Inc (O:AAPL), with its Apple TV app, is also trying to be a one-stop shop for buying and watching shows. App users can subscribe to channels like HBO and Showtime (but notably, not Netflix) - and then watch those shows on any device connected to their Apple ID, whether it is an iPhone, iPad or Apple TV box.