Wednesday, July 27, 2011

Mfarhanonline:The Looming Content Battle Between TV Everywhere & Online Streaming

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Mfarhanonline Social Media News: The TV Everywhere movement got another win Wednesday, as Fox announced that it will limit next-day streaming access to some of its programs to cable, satellite and Hulu Plus customers. This news, which comes a week after CNN and HLN’s TV Everywhere push , is just the latest example of the complicated relationship between television networks and the burgeoning streaming services game. TV Everywhere, which Netflix’s Reed Hastings has referred to as his company’s “ biggest competitor ,” is gaining favor with content producers, like broadcast and cable networks. Unlike the streaming deals that networks have to work out with Hulu, Netflix or Amazon, TV Everywhere streaming deals can be negotiated as part of a regular carrier relationship with cable and satellite operators. As demand for online content continues to grow, networks are looking to get more money for their content. Netflix, which already has a dearth of first-run content, has seen its licensing fees explode in the last few quarters . Still, the cable networks want more. That’s where TV Everywhere comes in. The carriage rates, or amount per subscriber that networks get from traditional cable and satellite providers, far exceeds pure online deals. That’s just one reason that premium cable networks like HBO have decided to skip Hulu or Netflix, and instead offer its own robust TV Everywhere offering, HBO Go . Consumers often ask why they can’t just subscribe to HBO online. The answer is that the price that the market would bear for an online stand alone subscription, is in all likelihood less than what HBO is getting from cable and satellite companies in carriage and subscriber fees. As HBO told us at Mfarhanonline Connect , the goal with HBO Go wasn’t necessarily to add more HBO subscribers, but to keep existing HBO su! bscriber s from canceling their subscriptions in the months when the network isn’t airing new episodes of its original series. That makes HBO Go and TV Everywhere good for cable providers, but that's bad news for services like Hulu and Netflix. The one thing that could change the situation — at least as far as free online streaming of content is concerned, would be if broadcast networks could get better ad deals for streaming content. Of the current Hulu owners, Fox has been most vocal about wanting to increase the ad footprint in Hulu . What remains to be seen is what the other network partners will do. More About: connected tv , Fox , hulu , hulu plus , netflix , tv everywhere For more Media coverage: Follow Mfarhanonline Media on Twitter Become a Fan on Facebook Subscribe to the Media channel Download our free apps for Android , Mac , iPhone and iPad Social Media reviews series maintain by Mayya

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http://www.mfarhanonline.com/2011072729236/the-looming-content-battle-between-tv-everywhere-online-streaming/

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