It also spurred cable and satellite to ramp up their own innovation - but in a controlled way that fits in the existing business model. The prospect of new tech competitors reiterated how important the traditional distributors are - with their massive subscriber bases - to media companies, who need as many people watching their programming as possible - all while measuring how many of them there are - in order to raise ad rates, he said. The idea of an online player taking over has affirmed cable and satellite companies' positions in the landscape and made all players realize what they could lose by rocking the boat, said Brannon. Read: More than a chip maker? Intel's blown opportunities
The irony of the world's top tech companies jockeying to launch virtual pay-TV services is that the traditional providers have only become more entrenched with time.
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Comcast, Time Warner Cable, DirecTV and Dish - the largest of the country's cable and satellite TV operators - wouldn't comment for this story. But traditional pay-TV providers in the US have been leery of coexisting with over-the-top services, even though some pay-TV providers abroad have begun limited partnerships with Netflix.ĪBC, CBS, NBC, Fox, Showtime, HBO, AMC and ESPN either declined to comment or didn't respond to messages from CNET for this story. In addition, for a Web TV offering to be truly Web TV, it would need to offer all the channels consumers want alongside the "over-the-top" video capabilities like Netflix and Hulu that they associate with Internet viewing.
For the companies still working on Web TV, it would mean charging less than traditional competitors for a service while paying more than traditional competitors to offer it. Huggers said in February that Intel's service wouldn't cut a user's television bill in half. Intel knew early on that it couldn't win on price.
Google and Apple didn't respond to messages seeking comment, and Sony said reports of its own Internet-based TV project are based on speculation.įor Internet-based TV to be a competitive option, it either needs to be cheaper than cable and satellite or it needs to provide the content that subscribers want in a better way. The technology companies pursuing Web TV have stayed silent on their TV ambitions publicly.
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(Sony's gaming rival Microsoft's Xbox at one time expressed interest in morphing its console to include a full Internet-based TV service, but the company instead opted to join forces with other television providers for its Xbox One, integrating cable services instead of replicating them.) Sony is the only contender reported to have have a tentative deal with a media company, Viacom, which owns Comedy Central, MTV and other channels. In the case of Sony, it means pushing the bounds of its PlayStation gaming console, but the company was the first to make early headway on content.
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