Cable Companies Want to Control Online TV: Now This Sounds Like a Bad Idea
Enjoy the online TV party while it lasts, because if it is up to your favorite cable companies like Comcast and Time Warner, access to TV shows might soon go behind a paywall that will be controlled by cable or satellite TV providers. Just as the newspaper industry doesn't know how to react to the new challenges posed by the Internet, the cable industry, too, is trying to remain relevant in a world where appointment TV is a thing of the past. This is due to the proliferation of DVRs where TV networks and producers can just put their content on the web and users can watch these shows on their TVs and in their living rooms thanks to cheap hardware devices from Apple and Roku, and software like Boxee.
Currently, only a few households have abandoned their cable TV in favor of going online only, but this number is probably growing and looking forward. The cable industry is surely seeing this as a threat, especially after analyzing the current state of the newspaper industry, which is facing a very similar situation where free online content is driving readers away from their legacy product.
Authentication
Now, Comcast and Time Warner are about to start a trial with about 5,000 cable customers that would give these households access to TV programs on the web. Of course, the real test here is not whether the cable companies can deliver online TV over their networks, but whether they can figure out a good way to 'authenticate' households that have a cable subscription.
Spin: More Choice for Customers
As Om Malik points out, this also opens up the door for possible anti-trust proceedings against the large media companies that are involved here. For now, it looks like Comcast and Time Warner will be working together on this project (Time Warner uses the name TV Everywhere, Comcast calls its system "OnDemand Online"). In this limited first test, Comcast will carry some programming from Time Warner's TNT and TBS networks.
As expected, the cable companies are spinning this as an innovative agreement that will bring "customers exponentially more free content, more choice and more HD programming online as well as on TV." In reality, of course, this project is simply a way for the cable companies and networks to protect their revenue streams.
There is, however, also some truth to the cable companies' claims. A lot of cable networks do not put any of their content on the Internet, as the networks don't want to jeopardize the lucrative income stream they currently receive from the cable companies.
Hulu, the Elephant in the Room also Wants to Play
As of now, free TV programming online isn't going to go away anytime soon, but as PaidContent reports, Hulu, the most visible online TV site, is also looking into subscription models and the executives there might not be averse to joining the cable companies' authentication schemes. At some point in the future then, your cable subscription might determine which shows you can watch on Hulu and similar online TV sites.
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We already have major bandwidth limitations in the U.S. that will be much worse if large numbers of Internet users decide to start watching television and movies over their Internet connections.
Not every Internet connection has unlimited bandwidth today and some major providers want to create new limits. This issue has to be addressed before TV and movies via download are truly viable.
Interesting article. I am personally tempted to turn off the tube if this does happen.
I remember a study done in the 90s by a cable company in California that gave the choice of only 12 stations, one of which could be a premium channel that my Mom participated at the time to see if that would increase sales. It never came to fruition since the large number of stations offered as pretty much remained the same over the years.
I am one of the people that have gone to the Hulu style "commercial" Television... and dropped the Satellite monster I used to deal with. I hate the gouging that the satellite and cable providers do and absolutely love the idea of Hulu. Isnt this how commercial television was originally conceived... have the sponsers paying the bills and the consumers enjoying the entertainment. I love the idea of going back to this. If the cable companies and satellite providers start charging and blocking, I am sure there will be content provided by users, or another company or country that sees the potential of the original commercial TV concept. True capitalism and free enterprise will hopefully overcome what has crept into our entertainment industry over the last 10-15 years and will prevail over the monopolies. Rethink copyright laws... make things convenient for the consumer take your hand out of the pocket of the consumer and make a resonable profit from the sponsers... win win for those that take advantage and use the right concepts.
I have been trying to convince my wife to give up paying for the cable and use our broadband connection and Hulu/Boxee to watch the small number of show we like. She's slowly coming around (especially after she watched an episode of her favourite show on Hulu that the TiVo failed to record because of a power outage).
Big media sees online television as a big threat to their cash-cow cable and satellite business. Fortunately there is nothing they can do to stop it. This is not the first industry that will see drastic changes as a result of technology. And it won't be the last. PCTVCables.com.
I think that watching TV will really become viable in the next couple of years with 4G starting to roll out. Then we can Dump Comcast and Time Warner all together because we won't need their broadband either.
I'm sure though the customers will eventually get screwed into paying some type of fee... but free will be good while it lasts.
Would be nice though if Cable Networks would start selling their content to Hulu (as well as Cable Companies) and I could sign up Ala Carte and purchase the channels I want.
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In my opinion best oinline tv site is http://gtv.id.lv/en there are hundreds of channels, sports, music, news etc. also it's very easy to use
why not if they want to take over online tv, its good for us, the customer, more choice and alternative