Cable TV companies mull impact of online video

Apr 01, 2009 By DEBORAH YAO , AP Business Writer

(AP) -- Cable TV operators have treaded gingerly with online video. The companies want to meet consumer demand for watching shows on the Internet. But they don't want cable TV to lose its place as the home's main entertainment pipe.

These ideas are in the air this week at The Cable Show, the industry's annual trade convention. Cable TV operators agree they have to respond to the trend of online TV in a way that doesn't decimate their business, much like the Internet has hurt the music and newspaper industries.

Jerald Kent, chief executive of cable operator Suddenlink Communications, said cable TV companies will have to do something in between the approaches taken by the music industry - which ignored the threat of the Internet for too long - and the newspaper industry, which put its content online for free.

One idea rapidly gaining ground is to let only subscribers watch cable shows online, through an authentication process cable companies have yet to finalize.

This idea goes by at least two names. . calls it "On Demand Online" while Inc. has dubbed it "TV Everywhere."

Subscribers would be able to connect to Web sites specially set up to view cable shows. Or existing cable Web sites - such as HBO.com - would have a dedicated area only subscribers can enter.

Either method would create a "walled garden" of cable shows and keep that content from being offered for free over the Internet.

Still, there are tricky things to overcome. Kent pointed out that cable companies have to decide whether to give access to each user or each home. They also have to figure out how to treat second homes of subscribers, and decide what to do if subscribers' children take access with them to their college dormitory.

And should cable TV operators charge extra for subscribers to watch cable shows online, or bake that into the cost of a subscription? "I'm not sure," Kent said.

Comcast CEO Brian Roberts said it's not a matter of online video completely replacing cable TV. Rather, cable companies should see online video as a new service that can boost business.

"It's a friend, not a foe," he said. "Give the consumer what they want but do it in a way that is fair, friendly and at the same time adds value, not destroys value."

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Google wireless service could disrupt carriers

add to favorites email to friend print save as pdf

Related Stories

Connecticut IPTV vs. cable battle not over

Jun 09, 2006

Connecticut cable providers pondered their next move Friday after a decision by regulators opened the door to telco-supplied Internet Protocol Television.

Ad watchdog: Cablevision Internet not 'fastest'

Mar 27, 2009

(AP) -- Cablevision Systems Corp. should stop saying its Internet service is "the fastest around," the advertising industry's self-regulatory body said Thursday, in response to complaints from competitor Verizon Communications ...

Comcast, Sony to open joint retail store

Mar 16, 2009

(AP) -- Despite the poor economy, Comcast Corp. and Sony Corp. plan to open a retail store Tuesday. The cable TV operator and the electronics company will use the store to showcase new technologies and products, taking a ...

Recommended for you

Google wireless service could disrupt carriers

3 hours ago

Internet users from San Jose to Kansas City have been clamoring for Google to lay down its long-awaited fiber-optic network to compete with Comcast and AT&T in speeding up Web and television access. Now the Silicon Valley ...

Google super-fast US Internet service spreads

4 hours ago

Google's super-fast Internet service—up to 100 times quicker than basic broadband—is heading for four more US metropolitan areas as the technology titan ramps up pressure on cable service giants.

Transmitting wireless data on higher frequencies

11 hours ago

Everything we do that requires a wireless connection uses the radio spectrum. We're able to harness radio waves to listen to music in the car or stream Netflix from the 4G network on our smartphones. Each ...

Review: Good price, limited functions with online Sling TV

Jan 26, 2015

Satellite TV provider Dish Network made a splash this month when it unveiled an online alternative with fewer channels and a lower price tag than its regular service. The Sling TV option is aimed at people who have dropped ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.