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June 29, 2006
More News on Cable TV’s Transition to Web-based Programming
Back in May, I blogged that local revenues from video franchise fees were safe as long as cable TV companies used a local satellite head-end to receive hundreds of programming channels and pipe them down to area homes.
“Should programming delivery shift to a Web-based client-server model, where the cable box works more like a web browser than a TV channel tuner, subscription-based Internet video could replace today’s downlink-and-transmit model.”
It’s happening faster than even I would have thought. The Wall Street Journal reports today that Comcast and Time Warner are investing in technology that helps move Web content to television sets.
They see clearly see a future where the Web is a source of first-line entertainment programming—Hollywood movies and network TV shows—and they don’t want to be left out.
In addition to quietly purchasing in companies like thePlatform Inc., a startup that builds devices that routes video from the Internet to TVs and cellphones, Comcast is placing more content on its Comcast.net site. Right now, users must be Comcast customers to access and download material, but the Journal reports that Comcast is mulling the possibility of marketing Web-based content to everyone with a broadband connection, a move that would further heighten the competitive stakes.
Time Warner Cable, of course, is a sister unit of AOL, which has thrown its hat in the content aggregation ring, and both are owned by media giant Time Warner.
Consumers, of course, will be the big winners. Slingboxes have placed the term “place-shifting” alongside “time-shifting,” spawned by VCRs so long ago. Users are no longer stuck with the cable programming line-up. Elected officials who have clamored for a la carte choice have to like this. Never mind “family tiers,” isn’t the ability to download individual programs the ultimate in a la carte? Yet franchise fees will be more difficult to justify when cable companies can deliver programming without a physical presence in local area. Comcast can sell programming from its web site into Time Warner territory, but isn’t hit with the five percent fee that Time Warner is.
Local franchise authorities like those in DuPage County, who are clinging ferociously to old franchise fee models, stand to be the big losers. While franchise rules, including the newer state rules, call for fees to be assessed on pay-per-view services delivered via the traditional local head-end, they largely exclude services delivered over a high-speed Internet connection.
The problem has been that franchise fees are assessed on a service, not on the fact that cable companies require right-of-way. In most areas, cable companies pay both. And a lot of farnchise "reform" simply extends those extra fees to telephone companies who choose to offer video over existing lines.
That's why the few franchise reform bills that force local authorities to apply payments income to right-of-way make the most sense. Even so, these fees should reflect the true cost of right-of-way--and its accommodation--on the part of the municipality. Service-defined fees will be harder to maintain, simply as a matter of course. The industry's revenue stream is changing. Local authorities are on the clock.
Posted by steve.titch at June 29, 2006 09:40 AM
I haven't been up to much lately. I've basically been doing nothing , but it's not important. I can't be bothered with anything recently. I've just been letting everything happen without me lately.
Comment by: Sten9120 at January 22, 2007 02:59 PM
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I just don't have anything to say , but shrug. So it goes. Not much on my mind recently. I can't be bothered with anything recently.
Comment by: Sten73345 at January 26, 2007 08:23 AM
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I haven't been up to much lately. I've basically been doing nothing , but it's not important. I can't be bothered with anything recently. I've just been letting everything happen without me lately.
Comment by: Sten62506 at January 26, 2007 09:55 PM
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I feel like an empty room, but eh. Nothing seems worth doing. I haven't gotten much done today.
Comment by: Sten65380 at January 27, 2007 06:41 AM
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My life's been basically bland today. More or less nothing seems worth thinking about. My mind is like an empty room. I've more or less been doing nothing to speak of. Not much on my mind recently.
Comment by: Sten40737 at January 28, 2007 09:16 AM
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I haven't been up to much these days. Today was a loss. Nothing seems important. I've just been letting everything happen without me these days.
Comment by: Sten36134 at January 28, 2007 08:04 PM
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I've just been staying at home waiting for something to happen, but I don't care. Basically nothing seems worth thinking about. I can't be bothered with anything recently.
Comment by: Sten20648 at January 29, 2007 05:52 AM
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I haven't been up to anything these days. So it goes. I can't be bothered with anything these days.
Comment by: Sten75275 at January 29, 2007 08:39 AM
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I just don't have anything to say right now. I haven't been up to anything recently, but it's not important. I've just been sitting around waiting for something to happen, but shrug.
Comment by: Sten28750 at January 29, 2007 06:51 PM
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My mind is like a bunch of nothing, but I guess it doesn't bother me. I haven't been up to anything recently. I've pretty much been doing nothing to speak of.
Comment by: Sten4600 at January 30, 2007 12:37 AM
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My mind is like a bunch of nothing, but I guess it doesn't bother me. I haven't been up to anything recently. I've pretty much been doing nothing to speak of.
Comment by: Sten1513 at January 30, 2007 06:56 AM
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I've just been staying at home waiting for something to happen. Whatever. Not much on my mind lately. I guess it doesn't bother me.
Comment by: Sten1053 at January 30, 2007 07:50 AM
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I haven't been up to much these days. Today was a loss. Nothing seems important. I've just been letting everything happen without me these days.
Comment by: Sten93903 at January 31, 2007 03:55 AM
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I haven't been up to anything today. I don't care. I've just been staying at home not getting anything done. Basically not much happening right now. Maybe tomorrow. I guess it doesn't bother me.
Comment by: Sten77958 at January 31, 2007 07:22 AM
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I haven't been up to much these days. Today was a loss. Nothing seems important. I've just been letting everything happen without me these days.
Comment by: Sten38247 at January 31, 2007 04:31 PM
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I just don't have anything to say right now. I haven't been up to anything recently, but it's not important. I've just been sitting around waiting for something to happen, but shrug.
Comment by: Sten12621 at January 31, 2007 07:44 PM
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I haven't gotten anything done recently. I've just been hanging out doing nothing. I haven't been up to anything these days, but it's not important. Today was a total loss.
Comment by: Sten67200 at February 1, 2007 05:35 AM
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I feel like an empty room, but eh. Nothing seems worth doing. I haven't gotten much done today.
Comment by: Sten24335 at February 1, 2007 10:24 AM
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I haven't been up to much lately. I've basically been doing nothing , but it's not important. I can't be bothered with anything recently. I've just been letting everything happen without me lately.
Comment by: Sten58210 at February 1, 2007 04:06 PM
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I've more or less been doing nothing worth mentioning, but eh. My life's been really bland today. I don't care. I've just been letting everything happen without me these days. That's how it is.
Comment by: Sten18039 at February 2, 2007 08:55 PM
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I just don't have anything to say right now. I haven't been up to anything recently, but it's not important. I've just been sitting around waiting for something to happen, but shrug.
Comment by: Sten41253 at February 3, 2007 12:33 AM
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My life's been basically bland today. More or less nothing seems worth thinking about. My mind is like an empty room. I've more or less been doing nothing to speak of. Not much on my mind recently.
Comment by: Sten49067 at February 3, 2007 05:49 AM
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Not much on my mind lately. My life's been completely boring these days. I've just been hanging out not getting anything done. So it goes.
Comment by: Sten21402 at February 3, 2007 09:39 PM
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I just don't have much to say recently. Such is life. I've basically been doing nothing. Basically nothing seems worth bothering with. Oh well.
Comment by: Sten45841 at February 4, 2007 12:19 AM
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I haven't been up to anything today. I don't care. I've just been staying at home not getting anything done. Basically not much happening right now. Maybe tomorrow. I guess it doesn't bother me.
Comment by: Sten85381 at February 4, 2007 06:48 AM
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Not much on my mind. I don't care. I've just been letting everything happen without me , but shrug. Whatever. I feel like a void.
Comment by: Sten37922 at February 4, 2007 08:40 PM
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My mind is like a bunch of nothing, but I guess it doesn't bother me. I haven't been up to anything recently. I've pretty much been doing nothing to speak of.
Comment by: Sten54056 at February 4, 2007 11:04 PM
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I haven't gotten anything done today. I feel like a fog, but what can I say? I've just been letting everything wash over me lately, not that it matters. Shrug.
Comment by: Sten81010 at February 4, 2007 11:16 PM
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I can't be bothered with anything these days, but such is life. I don't care. So it goes. More or less nothing seems worth thinking about. I've just been hanging out waiting for something to happen, but that's how it is.
Comment by: Sten3714 at February 5, 2007 07:03 AM
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