Comcast Brings More TV Networks Onboard For 'TV Everywhere'
15 July 2009 - 5:45AM
Dow Jones News
More than a dozen TV networks - including one broadcaster, CBS
Corp. (CBS) - have agreed to join Comcast Corp.'s (CMCSA, CMCSK)
upcoming nationwide test of an online video subscription
offering.
The agreements signal that a critical mass of major players in
the TV business are lining up behind a concept championed by Time
Warner Inc. (TWX) Chief Executive Jeff Bewkes known as "TV
Everywhere," which aims to preserve the industry's lucrative
subscription business model amid the rise of online video.
"Today's announcement highlights the industry's growing interest
to bring long-form content to consumers via a secure and
easy-to-use online platform," said Matt Bond, executive vice
president of content acquisition with Comcast.
In addition to CBS, the other networks include cable network
AMC, owned by Cablevision Systems Corp. (CVC); the Food Network,
owned by Scripps Networks Interactive Inc. (SNI); and BBC America,
owned by the BBC. Along with others, they joined Time Warner's HBO
and Turner networks as well as Liberty Media Corp.'s (LMDIA)
Starz.
Comcast, in a plan it calls "On Demand Online," will offer a Web
authentication system that will allow 5,000 Comcast customers in
markets across the country to verify their cable TV subscription in
order to access programming online in an on-demand format at
Fancast.com and Comcast.net.
The trial will provide online access for Comcast's TV
subscribers to some of TV's most popular programming, including HBO
shows like "Entourage" and "True Blood" and TNT's "The Closer."
AMC's "Mad Men" and "Breaking Bad" are expected to be included
later this summer, and the offering will also include major
Hollywood films like "Dark Night" and "Juno."
Participation from a broadcaster like CBS is particularly
noteworthy, as broadcasters have been putting popular TV content
online for free on ad-supported sites like Hulu. Unlike their cable
counterparts, broadcast networks depend mostly on ad revenue and
have little incentive to limit access to their content in order to
help pay-TV distributors preserve their business.
For its part, CBS has made much of its programming available at
its own video site, TV.com, but the company has made progress
recently in growing carriage fees that it gets from distributors to
complement its ad revenue. Its participation in the trial signals
the growing importance that carriage fees have to broadcast TV as
ad markets suffer through the recession and Web players like Google
Inc. (GOOG) steal market share.
A source at CBS said the company will offer programming that was
not previously available online through the test, but its premium
cable network, Showtime, will not be available.
Other broadcast giants like News Corp. (NWS, NWSA), Walt Disney
Co. (DIS) and NBC Universal have yet to participate, although
A&E Television Networks, which is participating, is part-owned
by Disney and NBC Universal.Comcast, however, is still holding
talks with most TV companies in an effort to bring more into the
fold.
Seeing a potential threat from the rise of online video viewing,
which remains in its infancy, Comcast and Time Warner recently
agreed on a framework for putting programming from cable networks
online to satisfy consumer demand while still requiring customers
to subscribe to a TV service in order to prevent an erosion in
their revenue base. Bewkes has said he envisions an industrywide
authentication platform that will allow subscribers to any pay-TV
service to access programming online on PCs and mobile devices.
-By Nat Worden, Dow Jones Newswires; (212) 416-2472;
nat.worden@dowjones.com