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Time Warner and Comcast join hands to migrate TV to net news
Written by Administrator , Monday, 29 June 2009 23:41
Time Warner Inc and Comcast Corp have joined hands to migrate TV content to the net and mobile phones in an initiative that Time Warner calls TV Everywhere and Comcast has dubbed OnDemand Online. The service will however be accessible only to paying cable subscribers.

Time Warner, is one of the largest internet entertainment companies in the world, while Comcast, is the largest cable operator in the US.

According to Time Warner chief executive, Jeff Bewkes, the service is something demanded by consumers and if the approach got adopted it would go past broadcast viewing (online), which is basically three networks on Hulu.

The test would involve 5,000 Comcast customers who will receive access to Turner Broadcasting System Inc's TNT and TBS cable networks. Turner Broadcasting is a unit of Time Warner.
Apart from online versions shared by viewers, most cable shows are not available online.

According to Time Warner and Comcast if the test was successful it would throw open the floodgates for shows that are not easily accessible or available for more than 90 per cent of households that pay for TV.

However, according to sources, the announcement would lead to the companies getting embroiled in the growing debate whether people should be forced to pay for content online instead of getting it for free.

At a press briefing Time Warner and Comcast skillfully presented the initiative as just another way to offer consumers programming when and where they want it. Bewkes said that the development marked the very logical next evolution of cable TV.

However, the executives failed to address the direct threat to their business model from such sites as Hulu.com owned by News Corp from which consumers can already access a lot of programming online for free. The concern for cable is that with more programming  available online consumers will stop paying pay-TV subscriptions. Though such so called cord-cutting is not happening on a significant scale, Time Warner and Comcast would want to keep it that way.

They are hoping that other TV networks and service providers would join their effort. More than half of cable networks' revenues come from the fees that service providers such as Time Warner and Direct TV pay and jeopardising those revenues by giving away the channels for free would be in nobody's interest .

Co
mcast CEO Brian Roberts said he hoped to roll out Comcast On Demand Online nationally by the end of the year. Both executives concede that their partnership is still very much an experiment and they still needed to work out their advertising models. Both companies are in talks with Nielsen about devising ways to measure online audiences for their video offerings that are more in line with TV measurements.