Reports indicate that Comcast Corporation (NASDAQ:CMCSA) is planning on launching a broadband-based video streaming service that will offer subscribers channels such as Walt Disney Co (NYSE:DIS) ESPN and Time Warner Inc (NYSE:TWX) HBO among others. The service is targeting broadband subscribers who are not willing to spend money on a regular cable package.

Sources said that the service, to be called Xfinity Instant TV, will cost a monthly fee of between $15 and $40. The service will be rolled out in the over 50 million households that Comcast already has a footprint in. This includes such cities as Chicago, San Francisco Bay Area, Washington D.C., Seattle, Houston and Philadelphia.

In Chicago and Boston, Comcast has conducted a trial run for a video-streaming service costing $15 per month. Comcast’s Xfinity Instant TV is based on that product.

Changing audience habits

Comcast is understood to have adopted this strategy following a change in viewing habits. The company hopes that the low fees for its entry-level offering will lure those who cannot afford to pay for expensive cable bundles. Comcast believes some of them will end up upgrading to the more robust X1 platform with time.

Some of the streaming services that Xfinity Instant TV will be competing with include AT&T Inc. (NYSE:T) DirecTV Now, Sony Corp (ADR) (NYSE:SNE) PlayStaton Vue and DISH Network Corp (NASDAQ:DISH) Sling TV. The distinction here, however, is that the Comcast service will be exclusive to those homes that are already subscribed to an internet service from Comcast. To access the video streaming service, users won’t be required to possess a set-top box supplied by Comcast but will be able to watch the content on any internet-connected device. They will also have access to a DVR service that is cloud-based.

National expansion

Though the Comcast service is limited to its territories, a national expansion could be in the works as the company has been purchasing national streaming rights. Technically that would allow Comcast to provide video-streaming beyond its territories. With Xfinity Instant TV restricted to subscribers of Comcast’s broadband internet service, it remains to be seen whether it will ignite net neutrality concerns when it launches in summer.

On Tuesday shares of Comcast Corporation fell by 0.05% to close the day at $37.09.