[I don't get it. Comcast will stream cable content over broadband to 
those who already have access via cable to the content. If you are 
already a Comcast subscriber and can watch these shows when broadcast, 
or later as VOD, or as recorded on your DVR, why would you want to watch 
them over the Internet? Am I the only one who finds it hare to imagine a 
big demand for this service?]

Comcast to debut cable shows online by year's end

By DEBORAH YAO
Associated Press

Oct 20, 2009

http://www.google.com/hostednews/ap/article/ALeqM5heTxaf_xzKOny3X-6e955e-nA9rwD9BF487O4


PHILADELPHIA — You'll be able to watch popular cable television series 
such as HBO's "Entourage" and AMC's "Mad Men" on your computer by the 
end of the year without paying extra — as long as you're a Comcast Corp. 
subscriber watching at home.

Comcast will be the first cable TV operator to unlock online access to a 
slate of valuable cable shows and movies, aiming to replicate what's 
available on television through video on demand.

Time Warner Cable Inc. and others plan to follow as the pay-TV companies 
look to satisfy growing consumer appetite for online video while 
preserving subscription revenue.

Access will be carefully guarded: Comcast subscribers can initially 
watch shows and movies only on their home computers after being verified 
by the cable system. And for now, the online viewing will be restricted 
to those who also get Internet service through Comcast, not through 
competitors like phone companies.

Comcast, wanting to make sure the shows will remain off-limits to 
non-subscribers, still is working on providing access over competing 
home broadband systems as well as on the go — at work, on laptops and, 
one day, over cell phones.

At a briefing at Comcast's Philadelphia headquarters this week, 
executives said cable networks such as HBO will decide how much to put 
online. Some will include the current season's episodes only, while 
others could include archives of past seasons.

The offerings expand on what cable networks now make available online. 
Broadcast networks have been running full episodes of many shows for 
free on sites like Hulu, but cable networks have typically resisted. 
AMC's Web site, for instance, has the season premiere of "Mad Men" in 
its entirety but only video summaries of subsequent episodes.

Comcast's national rollout of "On Demand Online" — the company promises 
to replace that with a hipper, more contemporary moniker — comes months 
after the cable operator announced partnerships with 24 cable TV 
networks and broadcasters.

The company's talks for a controlling stake in NBC Universal, which owns 
a third of rival site Hulu.com, is not expected to affect its online 
video aspirations.

Similar plans are in the works at other pay-TV operators, including Time 
Warner Cable Inc., Verizon Communications Inc. and DirecTV Group Inc.

Viewers can access the cable shows and movies through Comcast-owned 
Comcast.net and Fancast.com and eventually on the Web site of cable 
networks such as AMC, which is owned by Cablevision Systems Corp. After 
users log in, the cable system will perform such checks as whether a 
Comcast cable modem is being used.

Comcast CEO Brian Roberts showed off the new service at the Web 2.0 
Summit in San Francisco on Tuesday, likening it to "video on demand on 
steroids."

Comcast has no plans to offer an online-only subscription for cable 
channels, a move that could cannibalize its own cable TV offerings. 
However, it will expand ways in which viewers can rent and buy shows and 
movies through an integrated store on Fancast.com.

Premium cable channels that currently don't have any commercials, such 
as those from Time Warner Inc.'s HBO, CBS Corp.'s Showtime and Liberty 
Media Corp.'s Starz, will not have any ads online, either in the video 
or on the Web page. Ad-supported networks have typically shown ads 
online as well.

Comcast executives said the company plans to generate revenue by adding 
more and different types of ads on the sites. But the company's goal is 
not necessarily to profit from it but to keep subscribers happy enough 
so they don't cut the cord or defect to a competitor.

Comcast declined to comment about any type of revenue-sharing 
arrangements with cable networks. But it said current contracts give 
them digital rights to content.

Google Inc. has struggled to make YouTube profitable and Hulu.com, a 
popular free online video site, has been losing money as well.

In May, NBC CEO Jeff Zucker said Hulu will be profitable soon. Hulu is 
owned by General Electric Co.'s NBC Universal, News Corp., The Walt 
Disney Co. and Providence Equity Partners.

Roberts wouldn't comment at the Web 2.0 Summit on discussions regarding 
a potential purchase of most of NBC Universal, but did outline the 
advantages of combining a subscription business for content and an 
advertising business — something he said has long worked for Comcast and 
he expects will keep working in the future.

He added that it's "prudent" for the company to explore potential 
content deals.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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