The industry is abuzz with news that Disney and CBS are in the early stages of negotiations with Apple to join an online video subscription service that could launch as part of iTunes as early as next year, as reported by the Wall Street Journal. But […] Read more »
ABC and Disney are making their video available through Qualcomm’s FLO TV mobile video service, in a deal that will add popular shows like Grey’s Anatomy, Desperate Housewives and Lost to the service. In addition, FLO TV will add select content from ABC Family, SOAPnet, and […] Read more »
Over the past three years, the Internet has become a major secondary distribution platform for free-to-air broadcast programming. Whether through network programmers’ own sites, such as ABC.com, or through aggregators like Hulu and TV.com, ad-supported broadcast programming today is generally available online shortly after its initial airing at no cost to the user. However, programming such as ESPN, TNT and the Discovery Channel, which originates on pay-TV platforms (i.e. cable, satellite and telco TV services) has been a different story.
Cable system operators and other multichannel video program distributors (MVPDs) are loathe to see the programming for which they are charging subscribers hefty monthly fees made available “over-the-top” without a subscription. Over time, they fear, consumers would be tempted to drop their expensive cable service if they could access their favorite programs online.
Cable networks, for their part, collect hefty fees from MVPDs for the right to retransmit their programming, from a few cents per subscriber per month, to as much as $3.75 per subscriber per month, for the most popular channels like Disney’s ESPN. In aggregate, cable networks collect about $25 billion per year in “affiliate fees” from MVPDs, about the same amount as they generate collectively from advertising sales.
As a result, much of the original programming on pay-TV networks is not currently available online, and that which is often doesn’t appear until well after its original air date. The popularity of portals like Hulu (not to mention illegal sources of TV content), however, has accustomed consumers to expect access to their favorite shows online, putting pressure on the industry to respond. Network programmers and marketers, meanwhile, are also anxious to extend their programming franchises by tapping the broad, online audience.
TV Everywhere, which aims to make subscription programming available online exclusively to current pay-TV subscribers, represents an effort to square that circle. In this report, we look at the players, potential costs, and emerging opportunities of these efforts. Read more »
I missed the first episode of the V last night and forgot to DVR it. “No big deal,” I thought, “I’ll catch it on Hulu tomorrow.” Unh-unh. No such luck, my friend. V is not available on either Hulu or ABC.com today. The pilot is, however, […] Read more »
Time Warner Cable Hires Former Joost CTO; Jason Gaedtke will most likely help the cabler with its TV Everywhere plans; TWC had reportedly been in talks to buy Joost, but that didn’t happen. (Light Reading) Some Preliminary U.S. Open Stats; during the first two days of […] Read more »
