Comcast Web Unit on Target For Profit

In January, Comcast unveiled its flagship online video site Fancast, which aggregates thousands of hours of free programming from many of its cable network partners including Viacom, CBS, NBC and News Corp.

CNBC is a unit of General Electric's NBC Universal.

John Amis / AP Roberts

While programmers are putting more content online, at Fancast and other sites like NBC and News Corp's Hulu, there are also concerns that such sites will cannibalize cable TV's traditional business model.

Banse said Fancast would always run TV shows and movies online in a way that would complement scheduling windows for broadcast TV and DVD sales or rentals.

"We're not asking programmers to collapse their windows because that's how they make their money," said Banse. "We're not saying everything needs to be online. We're saying we can give you an on-demand experience on all platforms."

She said CIM has prioritized growing Fancast's user traffic with extensive content and features, such as adding a digital video recorder button to the website in the fourth quarter to allow subscribers to program their TV DVRs over the Internet.

Schwartz said Comcast is in active discussions with other cable companies to offer the online DVR service beyond its own 24 million subscribers. Satellite TV operator DIRECTV Group started offering a similar feature earlier this year.

Banse and Schwartz said as well as internal developments Comcast is still looking at acquisitions that suit CIM and its parent.

According to sources familiar with each deal, Comcast spent around $100 million on thePlatform, $200 million on Fandango and $175 million on Plaxo.

"We have a high level of interest in continuing to innovate products related to entertainment so we'll continue to look at potential M&A in that area," said Schwartz, who also heads Comcast Interactive Capital, Comcast's venture capital fund.

"We also have ambitions to grow our scale in advertising so we'll look at things that can grow our scale," he added.

Copyright 2008 Reuters. Click for restrictions.

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