Time Warner is planning to end access to free content online by making consumers of Internet TV prove they’ve already paid for it.
As the largest owner of cable networks, which include TNT, Cartoon Network, CNN and HBO, Time Warner has been closely watching broadcasters ABC, CBS, NBC and FOX work through the process of distributing TV online. Bewkes, Time Warner CEO, is planning to provide cable programming on the web in places like Hulu, MySpace, Yahoo TV and even YouTube.
The catch: To view the content for free, you have to be able to prove that you subscribe to pay TV through cable, satellite or Telco.
Free access for those already paying for service. Beweks told Advertising Age, “If you want to watch your favorite TV network or shows through broadband on any device – PCs or mobile – you can do it as long you subscribe to any multi-channel provider.” He goes on to say, “It’s a natural extension of the existing model.”
What’s the benefit? Some media experts are skeptical of Beweks’ plans, but there are also many who feel like a change is in order. After all, a year ago most doubted Hulu would be found appealing to online users. Some fear online programming distribution could soon replace cable TV and destroy the industry.
Time Warner’s cable CEO Glen Britt sees the phenomenon of viewers dropping cable for free content online as a significant growing problem.
What do you think?
Peter Koeppel is a Wharton MBA and president of Koeppel Direct, a full-service media buying agency based in Dallas.
Tags: Advertising, blog, content, Electronic Retailer, glen britt, hulu, koeppel direct, media buying, myspace, peter koeppel, subscription, time warner, viewers, youtube