Time Warner and US cable TV provider Comcast are partnering to offer video content online, in a bid to stave off competition from free internet video services such as Hulu.
The partnership is the first move in a potential industry-wide scheme, called TV Everywhere, which is designed to give cable TV costumers online access to programmes they already pay for. This is to try and stem the flow of users tempted away from their subscriptions by free online services.
In the first phase of the ?TV Everywhere? scheme, Comcast is trialling its own-brand On Demand Online service in 5,000 households. The service will include authentication software designed to stop non-subscribers accessing the shows, and will initially show content from the TNT and TBS channels. These are each owned by Turner Broadcasting, a subsidiary of Time Warner. The trial will begin in July and will include 5,000 Comcast customers.
The TV Everywhere model, which is being championed by Time Warner CEO Jeff Bewkes and others in the industry, is designed to be open and non-exclusive. Both companies say they hope to find other partners to join the scheme.
Though YouTube was once thought to pose a significant threat to traditional TV outlets, it is Hulu which is emerging as a true competitor to the cable companies. Owned by News Corp, NBC and Disney, the video streaming service has become immensely popular in the US in the year since its launch.
StrategyEye's related categories: Online Video, Broadcasters - Cable
StrategyEye's related companies: Comcast, Time Warner Cable
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