Cable Companies Aren't Immune From The Economy As More People Go Online-Only For TV
from the take-your-500-channels-and... dept
People are cutting back on lots of spending these days, but one area that was supposedly relatively safe was in-home entertainment expenditures. Things like cable and satellite TV and Netflix were thought to even thrive during economic downturns as people looked to limit going out, choosing instead to stay in and be entertained. While that seems to be working out for Netflix, cable companies are starting to feel the pinch as people drop their subscriptions and get their TV fix online. While it's a relatively small number of people that are making the move, it's the sort of thing that cable companies have been concerned about for a while. The WSJ story talks about some moves by the likes of Comcast and Time Warner to grab more online viewers, but if the cable companies continue to try and treat their online efforts in the same way as their traditional offerings, it's hard to see much success. It doesn't seem like a coincidence that this is happening as cable companies are looking to introduce caps on their broadband services. They say it's because some consumers are creating too much traffic, in part because of their online video viewing, and it's straining their networks. But perhaps it's just a way to try and capture lost TV revenue from cord-cutters? Of course, trying to get users who are going broadband-only for their TV to take on metered broadband seems like a good way to drive them to competitors with uncapped plans.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Well...
At least for the three people who have a choice. This has been talked to death, but the real problem (as you well know) is the lack of competition.
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Re: Well...
Hell they have a non written word about not competing in each others territory for customers.
Plus if they loose to much money, they can always bitch for a bailout.
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I call bulls**t
If that were true Comcast and Verizon here won't be competing for the fastest download. Comcast raised their speeds then Verizon raised theirs. Comcast did it again and Verizon dropped their price. Cocast did it again, Verizon got FiOS. Comcast is now supposidly raising their speeds to 50 down and 20 up to compete. If there was a bandwidth crunch then they would keep the speeds down to around 6Mbps (fast but won't properly support live streaming) to compensate.
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"it's straining their networks"
I see more people saving money this way and by using redbox or netflix.
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My two cents
$25/mo for HD and its DVR seems rather outrageous, especially since I haven't watched TV in quite some time.
I'd love to set up a home network for streaming TV online, but not yet ready to do so as my wife seems a bit adamant about learning/adapting to a new way to watch her shows.
I'm guessing this trend is going to continue as people seem to be more willing to watch a show on their schedule.
Could it be the channel is dead in 5 years? Doubtful, but I'm sure a decline at this time will be evident.
The problem I see, though, is the lost revenue from TV ads. Given their cost, I see a huge increase online or adaption of "pay per view" episodes.
It's going to suck, that's for sure.
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Re: My two cents
I see a huge increase online or adaption of "pay per view" episodes.
Except that won't work because you can still get the majority of television shows for free off of the bittorrent networks, other p2p networks and sites like hulu. If they start charging other sources will be sought.
The only way it would work is if the prices were VERY reasonable and they added some sort of value or reason to buy the episodes.
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Re: Re: My two cents
The average consumer isn't going to bit torrent. This seems to be reserved to those who understand the technical aspects of doing such.
I don't see myself doing it, either. Download, then extract, and hope it's the episode? I'll pass on chance.
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Re: Re: Re: My two cents
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Re: Re: Re: My two cents
Bit Torrent has never let me down when it comes to TV shows, and, during those rare times I use a public site, if I take the time to read the comments, I can avoid all the fake movies.
All you really need is a bit torrent client that can play well with an RSS feed (uTorrent would be the best bet) and a way to get it to your TV. I have had success with a D-Link Media Server, which just streams shared network media to your TV, though it might be more than you're willing to pay (~$250USD) but it streams in HD, so I don't even have to worry about poor quality.
Now, if I could convince my girlfriend that we don't need cable anymore.. some people just resist new things. :P
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Re: Re: Re: My two cents
it was like that 5 years ago, but the scene is way different now. bit torrent is a meritocracy. the good stuff gets seeded and the bad stuff dies on the vine.
pick a tracker that specializes in tv (like EZTV) and check it a few hours after the show aired on TV.
i do this, plus trade stuff with friends via USB hard drives.
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Time Warner Sucks
I asked them how much it would cost to turn it all off, and they told me it would be free. It took me 2 days to finally get them to waive that fee. But I can't imagine how many people just say ok.
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meh
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Lack of local competition in our rural town is hurting us in the ISP area, though. I'm glad we have broadband available, but there is only one game in town, so 3Mbps DSL costs a total of $80 a month once you include the phone we never use. If we drop the phone number, the DSL "access fee" is conveniently the same amount.
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Although; if I get a new PC and convert the old one to a media PC, that may be a thing of the past too.
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Re:
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OTA HD and TiVo/DVR
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Picking Nits
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I wrote in to adage about this in November 2008...
Only real problems with playing broadband video on your TV is that you will notice slowdown via the ISP, and broadband quality video doesn't always translate well on a 42" plasma.
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As some of you (who know who I am) might know, I watch a ton of Chinese TV. I would say that probably 25% of my total TV / video time in a week is in Chinese, more if I happen to pick up some good movies at the Chinese mall (Anthony Wong rules!).
Anyway, there is a product called KyLinTV, which is an IP set top box to allow access to chinese channels. takes about 1/2 meg per second to run the box, and the picture quality is about as good as can be expected for near real time streaming video. That is to say it is lower quality than old style compressed VCD discs played on a first generation player. Some of it is good, some of it is bad, and buffering and other issues are reported by many end users. I looked at a demo unit, and decided not to use it, even if there was a significant number of new channels to enjoy. Also, changing channels was a pain, literally having to rebuffer before you could see the next channel. The concept of channel surfer ain't in the cards here. Going through 30 channels might take the better part of a half hour.
If everyone switches to IP tv, I have a feeling that every cable company in the world will switch to capped bandwidth. Do the math on 500k per second, how much bandwidth in a month? Oh oh!
Nobody is sticking it to the cable companies, they are just shifting their money to another part of the same company. WTG!
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I've done this.
I did however buy a new HD - flatscreen for the first time, which I've put on my CC and am using my once monthly cable bill to pay off.
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Re: I've done this.
(Dropping cell for skype bought the kegerator lol)
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Satallite bundle practices....
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FIOS replaces TV set
I find it hysterical when a Verizon rep tries to sell me the TV package. I reply that I have a 20mbps FIOS connection, dude, I don't need no stinking TV! For the most part they do not get what I am telling them.
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Handbrake - Good Open Source (Free) DVD ripping software
If you want to play ripped videos on your G1, I recommend downloading a free program called Meridian from the G1 marketplace. It plays videos stored on your memory card without any hang-ups or glitches.
Like some of the other message posters, I felt almost gleeful when I finally mastered the beast. I am not a pirate, but I expect that I should be able to play the DVD that I paid for on my other devices, including my video IPOD, without coughing up more money.
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The numbers aren't there.
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