With digital companies like YouTube and Yahoo making aggressive pitches for cable ad dollars, one of cable TV’s stalwart programmers, Discovery Communications, rendered a bold response Thursday, purchasing top digital program provider Revision3 for $30 million. Read more at paidContent »
– Discovery Communications: Andrew Warren, former Liz Claiborne CFO and GE/NBC (NSDQ: CMCSA) Universal executive, joins as senior executive… Read more at paidContent »
For all the head-scratching and chin-pulling over Netflix’s decision to separate its DVD and streaming businesses, one important aspect of the move has gone largely overlooked: the effective separation of its movie and TV content businesses, which splits the company along content lines. While that may ... Read more at GigaOM Pro »
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 »
The switch to digital cable isn’t just yielding a multibillion spectrum auction, it’s also prompting cable companies and broadcasters to join forces and fight against a government mandate. The government’s been worried about how cable subscribers would get their less-watched local broadcasts once the analog signals […] Read more »
