GOOG Alphabet Inc

By Shalini Ramachandran 

Comcast Corp. and Alphabet Inc.'s YouTube on Monday announced a deal that will allow Comcast customers with the latest gear to search for and watch YouTube videos through their cable boxes.

The only customers who will have access to the new YouTube product are those who have Comcast's latest X1 set-top box. The cable giant said nearly 50% of its subscriber base currently has those boxes.

The deal follows a similar tie-up with Netflix Inc. that Comcast unveiled last July. When the YouTube app launches on X1 later this year, customers will be able to use Comcast's voice-controlled remote to search through YouTube fare along with traditional TV programming and Netflix shows and movies, all in one place.

YouTube apps are available through many smart TVs and internet-connected boxes like Roku, but those don't allow for an integrated search across traditional TV networks and Netflix, for instance.

"By integrating YouTube into the X1 experience, viewers can simply and effortlessly access videos on any topic, from cooking to beauty and fitness with just their voice," said Comcast Cable Chief Business Development Officer Sam Schwartz.

Web video outlets including YouTube and Netflix have for years sought access to cable customers through set-top boxes. In the past, a variety of issues stood in their way, including legacy cable boxes in the marketplace that didn't have internet connectivity. But in recent years, faced with competition from online providers with swankier user interfaces, cable companies have poured more investment into souped-up hardware and program guides, paving the way to deeper integration with online video companies.

"The YouTube integration on X1 will provide users the ability to seamlessly navigate and access YouTube content alongside their cable service," said Robert Kyncl, YouTube's chief business officer.

Cable operators have also seen their broadband products grow into a more important business in recent years. They have said that encouraging online video consumption makes consumers value their broadband products more.

For YouTube, the deal could allow the web-video company to attract new subscribers to its YouTube Red subscription service, which has struggled to gain traction.

Write to Shalini Ramachandran at shalini.ramachandran@wsj.com

(END) Dow Jones Newswires

February 27, 2017 09:14 ET (14:14 GMT)

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