THE CABLE PIPELINE

If you were a the Denver Meet this past week there seemed to be much enthusiasm about the prospects of a better economic situation; the direction of the Cable Industry initiatives like TV Everywhere; and the general hype of Cable’s future competitive offerings . While attendance seemed, a mixed bag, compared to previous forums, it continued to attract a respectable crowd from a continued cost conscious industry standpoint.

Comcast’s Steve Burke’s comments were of significance in realizing the Internet is changing the digital landscape from a linear programming format to a more flexible alternative in determining both how, when, and where the consumer will view and download content. One answer to that realization is TV Everywhere, which has come to life with a 10,000-customer presence through its Fancast property.

There continues to be some controversy surrounding TV Everywhere since viewing its online content requires subscription to both the Comcast video and broadband offerings. Does this equate to a customer (hostage scenario), or does it mean Comcast is thinking smart by gathering content with programmers, and its current bid for NBCU? (see Keeping Up With Comcast)

It does give some benefit to current Comcast customers, which is probably the point, since without TV Everywhere those subscribers would be migrating elsewhere like Hulu and Netflix to watch their favorite content online. However, the fact remains there continues to be obstacles ahead for Comcast’s initiative with authentication and distribution from programmers to make this a feasible and footprint wide service by the end of 2009. (See TV Execs: Don’t Be Distracted by ‘TV Everywhere’)

With a current model of revenue generating Digital Video, with heavy advertising capabilities, the Cable Industry cannot afford to move quickly to a new business model. In an effort to figure out the Internet Advertising puzzle, Comcast has collaborated with Canoe Ventures, LLC to position itself for a future with direct consumer advertising online rather than the more wasteful broad sweep of ads on video distribution today.

In addition, one should not forget Tru2Way, the initiative that seemed to have been put on the back burner by the Cable Industry, although Comcast’s David Cohen indicated their plant would be ready for the application by years end (see Comcast Wired for Tru2way by Year’s End). This signals a desire to go in its own direction, as evidenced by the missing of an important deadline with Tru2Way TV manufacturers this past summer. This initiative promised an interactive experience through a meshed TV/Internet experience. While some TV vendors have continued to move forward with the application, Comcast must see a better alternative.

Although perceptions of the Denver Meet were positive and uplifting it remains to be seen whether this is just rhetoric or something more substantial in Cable’s move to align itself with current and future customer online preferences. (Stay Tuned!)

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