Online Access to Cable Programming Is Next Test for Multichannel Providers

The ability of multichannel providers to launch companion online services for viewing cable programming will divide them into the haves and the have-nots over the next decade, according to a report from the Diffusion Group scheduled to be released today. The research firm concluded that cable operators that don’t introduce online portals for their on-air programming will be relegated to dumb-pipe status by 2020, meaning they’ll lose those customers who subscribe to their TV programming and eventually become merely providers of Internet connectivity. “If you have an integrated service now, you are better positioned to be a full-fledged video provider in 2020,” said Andy Tarczon, general manager of the Diffusion Group. “Most are still asleep behind the wheel: They have no idea as to the threat posed by open Internet-delivered TV services.” This is sobering news for operators that haven’t jumped yet to develop online access to their programming, but it’s good news for cablers Comcast and Time ... (link)