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Dallas Morning News

Test programs by Verizon and Comcast let cable subscribers catch shows on computers

August 26, 2009

Kurt Scherf, principal analyst for Dallas-based research firm Parks Associates, said the Comcast and Verizon systems seem like the best compromise between convenience for viewers and profitability for providers. "Although we all love free stuff online, something's going to have to pay the rent for this to continue," he said.

But ultimately, most, if not all, of the networks will probably support the subscriber-only online TV model, said Scherf at Parks Associates. He said the networks like that model because it provides a more dependable revenue stream and because it lets the networks precisely track who is watching their videos, because the services will require log-in credentials. Tracking users and targeting ads to them is much more difficult through free click-and-play sites such as Hulu. Plus, the TV industry knows what will happen if it dithers, Scherf said. "I think ... [they've learned] the lessons of the music services," he said. "And you don't want to let Apple get any bolder when it comes to the video space, either."

From the article, "Test programs by Verizon and Comcast let cable subscribers catch shows on computers" by Victor Godinez

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