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Anecdotal evidence suggests over-the-top video is a booming trend. But it takes technical skill, state-of-the-art broadband connections and the willingness to shell out money for both bandwidth and content subscriptions to fully integrate OTT into a household, much less consider trying to use it to cord cut. Read more at GigaOM Pro »

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netflix envelope

Netflix announced a $400 million sale of stock and convertible bonds on Monday, but a closer look at its balance sheet doesn’t bode well for the streaming video provider. It’s committed billions to content license deals but has just $366 million in cash and short-term investments. Read more »

Reed Hastings

Netflix is employing a multi-pronged approach to growing its streaming library: Get long-tail content on the cheap, pay top dollar for popular programming that will draw new users, and make some bets on exclusive original programming to differentiate from other video services. Read more »

pulp fiction

Miramax has made a deal with Lionsgate to distribute its film titles on DVD and Blu-ray, as well as through digital storefronts like Apple’s iTunes and Amazon Video on Demand. But the deal doesn’t include Netflix, which will have to strike its own deal with Miramax. Read more »

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Today on the Net: Disney CEO Bob Iger says affiliates should expect to pay more of their retrans fees to ABC, Lionsgate is getting into web video with 24 episodes of a new web series and Comcast shuffles its digital team ahead of the NBCU deal. Read more »

Today on the Net: Lionsgate releases a slew of DVDs exclusively at Best Buy weeks before they’re available for sale anywhere else, Disney launches ABC On Demand services in Europe and LoveFilm has added hundreds of classic movies from the MGM library to its service. Read more »

Warner Bros. Acquires Turbine, Developer of Lord of the Rings Online; Warner Bros. Interactive Entertainment, the video game division of the Burbank movie studio, said it has acquired Turbine Inc., a Massachusetts developer of massively multiplayer online games. (LA Times blog) Kit Digital to Power Tribeca […] Read more »

Widevine, Verimatrix Settle Patent Dispute; Under the settlement, Widevine granted Verimatrix a license to the two asserted Widevine patents and their foreign counterparts. (Multichannel News) Qik Comes Built-In to the HTC EVO 4G Android Phone; not only will Qik work on the new HTC EVO 4G, […] Read more »

Hollywood studios together with cable operators launched an ad campaign today aimed at educating consumers about on-demand video rentals available directly through their local cable providers — and making up for the shortfall generated by declining DVD sales. 20th Century Fox, Focus Features, Lionsgate, Rogue, Sony […] Read more »

Apple in Push to Halve Cost of TV Shows; the company is pressing US television networks to reduce prices for TV shows offered on iTunes in order to help spur demand. (Financial Times) Discovery Readies 3D Network for Launch this Year; Discovery says it will launch […] Read more »

orangeTV_trash-it

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 »

DivX announced today that for the first time in the U.S., major Hollywood movies will be available for download in the DivX format. Warner Bros., Lionsgate, Sony Pictures and Paramount have all signed on to have both catalog and new release titles sold through through a […] Read more »

TiVo Loses Another 139,000 Subscribers; for the quarter ending April 30, the company’s subscriber count dipped to 3.196 million, on par with what it had in early 2005. (TV by the Numbers) AT&T Boosting Its 3G Network; that’s good news for iPhone owners; even better, the […] Read more »

DTV Coupon Program Out of Money; government program offering $40 toward digital converter box out of money weeks earlier than anticipated. (TVWeek) Sling Shows Off iPhone App, Mac Capabilities; SlingPlayer Mobile for iPhone will let users watch TV and control their home DVR, SlingPlayer for Mac […] Read more »

Hollywood Interactive Gets $5 Million; company receives Series A led by BlueRun Ventures, and secures Joan and Melissa Rivers for red-carpet coverage. (Variety) Online Video CPMs Higher Than Display Ads; new poll from Bain and Co. shows the average CPM for video ad was $43, while […] Read more »

Microsoft Launches IPTV Ad System; the Mediaroom Advertising Platform will allow targeted interactive television ads to be delivered set-top boxes and provide measurement, the offering will be ready for roll out to AT&T and other telcos in 2009. (Multichannel News) Envivio Raises $25 Million; IP video […] Read more »

This post was written by Michael Stroud. Google CEO Eric Schmidt said today at a conference that YouTube will run ads against video snippets from films like Dirty Dancing posted by producer Lionsgate and fans and share the revenue with Lionsgate. Schmidt said the new channel […] Read more »

Well, the analysts at Pali Research were almost right. There is an additional “mystery” partner in the Viacom, Parmount, Lionsgate, MGM pay TV endeavour — but that partner is reportedly Blockbuster. According to The Wall Street Journal, the struggling movie rental chain is in talks to […] Read more »

Viacom, Paramount, MGM and Lionsgate made headlines last week when they announced they were banding together to form a new pay TV network. We voiced some questions over the deal, and Rich Greenfield, managing director and media analyst for Pali Research is also skeptical — but […] Read more »

Viacom has announced it’s joining forces with Paramount, MGM and Lionsgate to form a new pay TV channel, VOD and online service. Details are slim, but according to Variety, the online component would most likely not be an ad-supported model (like Hulu), but would look to […] Read more »