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Comcast, the top U.S. cable provider, will launch Xfinity Streampix Thursday with TV shows and movies from partners including Walt Disney Co., Time Warner Inc's Warner Bros, Sony Pictures, and NBC Universal, according to Reuters.  Streampix is a free service for those with premiere video packages and costs $4.99 for lower tier customers.

Comcast general manager of video services Marcien Jenckes denies that the new service, available only to its 22 million subscribers, is a tactic to take down Netflix, who saw a 4% drop in stock Tuesday.

"It is not at all our intention to compete with Netflix," said Jenckes.

Online streaming services have become increasingly competitive as companies like Verizon, Amazon and Wal-Mart have launched services.  Comcast's latest effort plans to prevent customers from canceling their cable subscriptions, said the New York Times blog.

"The main reason we're launching this product is we feel it helps provide value in our subscription service," said Jenckes.

According to Variety, Comcast may lure away Netflix customers simply because of pricing.  A cheaper alternative could persuade more subscribers to pay a few dollars more to a service they already use.

In an effort to prepare for the new competition, Netflix has started adding more titles to its library.  On Tuesday the company announced a deal that would give Netflix rights to show films from The Weinstein Co., like "The Artist," before a wider release to Showtime and HBO, said ABC.

New additions may pad the Netflix library when it loses streaming rights from Walt Disney Co. and other studios next week when a licensing deal with Starz expires.

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