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HOME • MANAGE SUBSCRIPTIONS • MEDIA KIT
Cable Customers Leaving For Internet TVs? If Price Is Right
by Wayne Friedman, Friday, January 11, 2008, 10:16 AM

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Will TV consumers abandon cable systems for Internet-capable TV sets? This all seems like a big jump; but remember, entertainment consumers saunter.

Cable operators used to fear that the satellite distributors would be their biggest threat. To a lesser extent, the immediate threat comes from phone companies-backed IPTV and IPTV-like programming services.

Now, for some cable customers there are too many programming choices that aren't used often enough, and high monthly prices -- $100 and more. All this has forced some angry people to consider options like leaving the traditional TV distribution system behind.

At the CES, many companies indicated they would like to take up the slack. SlingMedia talked up technology that would take content from the Internet and send it to any TV screen. Sony, Sharp and Panasonic are making televisions where you can directly plug in an Internet connection.

What does this sound like? A revolution? No, just some swirling and turning.

Cable operators aren't rolling their eyes. Instead they are beefing up set-top boxes. Some, like Comcast, are going high quality, saying it'll have 1,000 HD on-demand options soon. But just in case all this doesn't work, Comcast is starting up a broad-reaching entertainment Web site offering movies, TV shows, and other content -- covering all bases.

While high quality is desired, quantity seems to win the day at the moment, something the Internet has in abundance.

Right now a specific price/pleasure/useful factor exists. If a consumer is only watching nine of 600 cable channels, and there's a budget crunch in the household, out come the wire cutters. I haven't even mentioned a possible recession.

Now all those cash-crunched customers need to buy is that new $2,000 42-inch Internet-enabled Plasma screen.

3 comments on "Cable Customers Leaving For Internet TVs? If Price Is Right"

  1. Patrick Koppula from Project Vadver
    commented on: January 16, 2008 at 1:29 PM
    ffwd has been prototyping a living room optimized version of www.ffwd.com using the Wii browser, but we’ve been surprised to find our selves already approached with the possibility of skipping the box entirely and going straight to the display. This, in my mind, is real convergence, meaning a collapse to one physical point. And when the physical space gets collapsed, the information space expands. To wit, if the camera is Internet enabled (convergence on the creative side) and the display is Internet enabled (convergence on the audience side), there’s going to be an awful lot of cameras reaching out directly to displays. That’s where ffwd’s mission comes from: information management for the video web.

  2. Paul Schneider from PSPR
    commented on: January 11, 2008 at 3:16 PM
    As consumers continue to invest in large-screen TVs, the ability to access video offerings that combine “quantity� and “quality� will become more important. As an alternative to the wholesale (and costly) replacement of CPE gear, several operators are in the early stages of deployment of network-based platforms that combine the choice and control of the Web with the high quality and high reliability that subscribers expect from the television. Instead of giving consumers the inconsistency of a “best efforts� approach over the open Internet, these solutions leverage the flexibility and advantages of the managed cable network to ensure optimal delivery of broadband video content right to the TV set.

  3. William Hughes from Arnold Aerospace
    commented on: January 11, 2008 at 11:58 AM
    I stopped watching Cable TV a little over a year ago. I got fed up with the ever-decreasing quality of Programming (Three factors Contributed to this: First, is the ever-increasing number of Commercials being shown per program. Many of these Ads are for Products I have absolutely NO Interst in Purchasing, or are presented to me in a Manner that's downright Offending to me! I'd get a DVR to Fast-Forward through them, but what is there to record? This brings in the second factor: The Replacing of Quality Drama and Comedy Shows with Cheaply-Produced "Reality", Game and News Shows. (This has been going on before the Writer's Strike!) The third is the use of Pop-Ups, Scrolls and Banners during the Show itself. These things come in at the most oppurtune moments, for example, when an Actor is speaking in a foreign language. The English Subtitles will be blotted out with a Promo for the next show or a News headline.) I finally decided it just wasn't worth paying for anymore. Now I use the money I used to use for paying my Subscription to buy Box Sets of my Favorate Shows, wich are now watched in their unadulterated form, with no "Interruptions" butting in to spoil the program!

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WAYNE FRIEDMAN
  • Wayne Friedman is West Coast Editor of MediaPost.



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