• by Ross Fadner , December 29, 2005

Last fall, Web portals, telecom providers, cable operators, and several TV networks announced a flurry of deals to bring TV content to the Internet and Internet-enabled devices. Among the more notable developments: America Online and Warner Bros. partnered on a new broadband network, through which thousands of Warner Bros. TV programs can be streamed or downloaded; Sprint/Nextel and Comcast Corp., along with Cox Communications and Time Warner Cable, plan to offer mobile TV and other wireless services for Sprint subscribers; ABC has made its hit shows downloadable via Apple's iTunes; and CBS remains in discussions with Google and Yahoo! about content distribution deals.

All this activity sounds exciting, but analysts note that consumers lack a central means of distribution. "Consumers aren't going to want to have a relationship with 19 different content vendors," says Boyd Peterson, senior vice president of research at Yankee Group. Clearly they would rather go to one place, but Peterson says he doesn't expect to see Internet TV consolidation until the market matures, or until giants like Google or Yahoo! acquire a broadband TV start-up.

The important thing, Peterson says, is that broadband brings down the cost of production and opens up the chance for quality content to emerge. "Good content will get bought up by bigger media companies," he says, noting that "South Park," Comedy Central's hottest series, started on the Internet.

One ambitious Internet TV start-up, Brightcove, has already made waves before streaming a single video clip. Last November, the company trumpeted a $16.2 million funding round from America Online, Barry Diller's IAC/InterActive Corp., Hearst Corp., and Allen & Co. LLC. AOL inked a distribution deal with Brightcove, and Diller joined the company's board.

Brightcove's technology will enable content owners to bring assets directly to the Web, side-stepping cable distributors and other middlemen. "It's no different than going to cnn.com to watch breaking news," Peterson says. Brightcove also plans to sell in-stream video ads throughout its network of broadband video content.

In the mobile sphere, Disney says it will sell branded wireless phones offering service via Sprint Nextel's high-speed cellular network. Disney subsidiary espn has created Mobile espn to offer news, scores, and game highlights on mobile phones. It's unclear what Sprint Nextel's deal with cable operators will bring, but analysts say it will certainly include mobile TV. Similarly, TiVo now offers subscribers access to shows recorded on its service through portable devices like Apple's iPod or the Sony PSP (though not mobile phones).

Broadcast TV over wireless phones is a reality in Asia, but David Linsalata, a research analyst for IDC, says he doesn't expect broadcast TV to penetrate the American market for some time. He expects a lot of branding with mobile content applications but not ads, at least not until broadcast TV content is widely available.