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Monday, July 18, 2011

TV Everywhere Gaining Traction With Cable Operators

First it was about live streaming of TV networks inside the home, on untethered devices. With it came contract breakdowns, lawsuits, and limitations. But some networks found a value added opportunity. HBO built an app, HBO Go that when authenticated by your cable operator, enabled viewers to watch HBO movies, series, and specials on demand. And that was a good start.

But viewers want their TV anywhere and everywhere. The challenge to watch a live broadcast outside the home concerned programmers because they can't measure viewership. "Others are concerned that new devices, such as tablet computers, aren't included in Nielsen Co.'s TV ratings, which are used to set advertising rates. Some channels also lack Web rights to some of their programming." And some programmers are trying to renegotiate their license fees with operators for additional rights outside the home.

Well the needle keeps moving forward and Turner is taking the plunge with two of its networks, CNN, and Headline News (HN). "It will be available at launch through six pay-TV providers, with a total of about 50 million subscribers, according to SNL Kagan. But it isn't available through Time Warner Cable Inc., the country's No. 2 cable operator by video subscribers." Ironic given that Turner was once part of the Time Warner Cable family before they split into two separate companies, TWC and TWX, last year.

While news networks like CNN control almost their entire content, many other networks' content deals are far different. Their rights or windows may not allow them on demand or streaming. A web stream of their live channel will require networks to go back to all their content deals and renegotiate for those rights as well. So while it may be easy to stream CNN, TNT and TBS may be far tougher networks to offer streaming rights.

Regardless, mobile viewing and out of home access will be the next push by cable operators to retain and grow their cable subscription base. Live TV streaming to authenticated cable subscribers is a great first step in a changing entertainment landscape.

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