Cable companies working to curb free online TV


Right now, over at Hulu.com -- a joint project of News Corp. (NYSE: NWS) and General Electric Company's (NYSE: GE) NBC Universal, viewers can check out recent editions of, for example, The Daily Show or Man Caves, among many other programs normally viewed on cable networks such as Comedy Central or the DIY Network. Viewers need a computer and a high-speed Internet connection to catch these programs, but they don't need a cable subscription (or even a television!).


Cable providers are pushing for this to change. Time Warner Cable Inc. (NYSE: TWC), together with Comcast (NASDAQ: CMCSA), AT&T (NYSE: T), and others, are currently investigating a solution for online TV that would make programming available to subscribers only. Major cable channel companies such as Viacom Inc. (NYSE: VIA) -- parent of Comedy Central and MTV, and the BBC are being approached to help back the cause.

YouTube -- owned by Google, Inc. (NASDAQ: GOOG) -- is also reportedly in talks with Time Warner to stream network shows from TNT, TBS, and other Time Warner stations. Currently, YouTube appears to be losing the battle as a destination for longer streaming video to Hulu and network sites.

While online programming fulfills a need for many (I watched the entire second season of Greek online - thanks, ABC Family!), it doesn't yet contribute to traditional ratings numbers or advertising dollars. In other words? It's a win for the consumer, but a perceived loss for the producers, the networks, and the cable providers. Media companies have seen profits decline in recent months, leading them to get creative about other revenue sources. Subscription-based online viewing could be the next step.

Beth Gaston Moon works for WeSeed.com, "The stock market for the rest of us." The above comments are not intended as trading or investment advice.

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