InfoAnda - Cable operators, networks brace for an online world

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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Cable operators, networks brace for an online world Mon Mar 30, 2009 8:03pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Yinka Adegoke NEW YORK (Reuters) - When U.S. cable operators and networks gather at their biggest annual industry event this week, both sides will seek to preserve and enhance a long-term partnership now under threat as more and more consumers choose to watch their favorite shows online. In past years, cable companies employed the National Cable Telecommunications Association Show to showcase technologies and tout the diversification of their business, showing off faster broadband speeds, advanced digital phone services and new wireless services. But this year will mark a return to basics in Washington, D.C., for the operators who own the distribution pipes and the networks whose video content brings those pipes alive. Both sets of companies will be brainstorming on how to cope with or benefit from disintermediation: consumers can now watch decent-quality video online whenever they want, and often for free. "Last year, cable companies were in a more protectionist mode but now they're facing up to the inevitable trend, because online video is really here to stay," said Tuna Amobi, equity analyst at Standard & Poor's. Executives will also have the economy on their minds. "The current recession has cut into consumer spending for household TV and telecommunications, while also causing most marketers to reduce their advertising budgets," said Collins Stewart analyst Thomas Eagan. Longer term, the industry hopes to forge new tie-ups to capitalize on the online trend. Cable companies such as Time Warner Inc, which owns networks CNN and HBO, and Viacom Inc, owner of MTV Networks, are working on plans to offer shows on-demand over the Web -- so long as they're to already paying subscribers. For instance, Time Warner is experimenting with a Web programing initiative called "TV Everywhere" with HBO and its former sister company Time Warner Cable in Milwaukee -- more details of which will be trotted out this week. "Not only will the TV Everywhere initiative offer consumers more for their money, but it'll also enable television networks and multichannel video services to extend the current business model by delivering more high-quality television content online," Time Warner Chief Executive Jeff Bewkes said in an internal memo sent companywide on Monday. Analysts point out the irony about the perceived threat of online video, in that its popularity, through sites like Google Inc's YouTube and News Corp and NBC Universal's Hulu.com, had in fact been boosted by the cable industry's increasing broadband speeds, improving the viewing experience on the Web. The largest U.S. cable operator, Comcast Corp, is making plans to roll out a service called On Demand Online. For the cable operator, the service will be an extension of its existing video on demand service. Comcast has said it expects to roll out even faster speeds on its new cable platform, first demonstrated at last year's show. "The service really makes a difference in the quality of the video if you're trying to watch an HD show," said Mitch Bowling, Comcast's senior vice president of online services. "It decreases the buffer time and if you're downloading the video, it's a much faster experience." (Editing by Edwin Chan, Phil Berlowitz) © Thomson Reuters 2009 All rights reserved Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: IBM leads techs in seeking open "cloud" computing Also On Reuters NASA in Colbert conundrum over Space Station name Wagoner's exit puts Bank of America CEO Lewis in hotseat Send Questions: Ask the World Bank President More Technology News Microsoft unveils partners for applications store IBM leads techs in seeking open "cloud" computing Skype to launch service for iPhone, BlackBerry Intel rolls out Xeon in crowded servers arena Report says online crime surging in recession More Technology News... 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Slideshow Most Popular on Reuters Articles Video G20 not ready yet for new world currency debate Frustrated Americans cheer Obama's tough auto moves Wagoner's exit puts BofA CEO Lewis in hotseat Obama team drops "war on terror" rhetoric Fox News' Bill O'Reilly boycotting Sean Penn films U.S. recession seen not yet bottoming Asia stocks set for biggest jump in a decade NBC renews "Friday Night Lights" NASA in Colbert conundrum over Space Station Frustrated Americans cheer Obama's tough auto moves Most Popular Articles RSS Feed Video Madonna in Malawi court Loincloths hot among Japan woman Illusionist floats in mid-air Business Update: Wall St. slumps Obama rejects GM, Chrysler plans Pizza vending machine Obama hits the brakes on autos The Awakening in the balance Obama defends budget and dollar And Finally Village for Sale Most Popular Videos RSS Feed Your opinion matters We want to hear from you Learn More Take Reuters online survey Reuters.com: Help and Contact Us | Advertise With Us | Mobile | Newsletters | RSS | Interactive TV | Labs | Archive | Site Index | Video Index Thomson Reuters Corporate: Copyright | Disclaimer | Privacy | Professional Products | Professional Products Support | About Thomson Reuters | Careers International Editions: Africa | Arabic | Argentina | Brazil | Canada | China | France | Germany | India | Italy | Japan | Latin America | Mexico | Russia | Spain | United Kingdom | United States Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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