The problem is Cable/Telco’s as current distributors control the market, thus control the vast majority of payments and revenue to content creators. If the content creators don’t play ball the game how the Cable companies want them to, they can get cut off or get less than fair terms in negotiations.

They’re almost positioning themselves as the MPAA/RIAA for TV programming, saying if you’re aren’t subscribed to us, you have no right to watch TV programming online. ie. We’re the only legal source, while squashing disruptive technology and companies in the background by blocking them from competing on their proprietary networks (TV Everywhere) and exclusive arrangements with content creators.

I’d have to imagine there will be a lawsuit eventually about this behavior as it’s going to kill off a few promising companies if it continues.

But what do you expect, it’s just old entrenched companies protecting their business the hard way rather than adapt and listen to what their customers want. If they ever get backed into a corner with no other choice they may change, but until then they’re going to squeeze us for every dollar until one of these distruptive market changing companies breaks through with ala cart purchasing of TV shows at a fair price.

Current model:
content creator – > cable tv network -> cable provider -> customer

The future will be:
content creator – > customer

Online video could be supported by advertising-only if we got rid of the middlemen. Instead of billions of dollars going to the cable networks and cable provider it should be going to the content creators so that they can make even better content. Cable companies are afraid. This is the exact reason they are implementing bandwidth caps and trying to bundle cable tv with online video.

http://www.silicondust.com/products/hdhomerun_home_atsc

Anyone have any first-hand experience with this?

When I first switched from TWC to AT&T’s U-Verse service I was thrilled with all the little extras like total-home DVR, the iPhone app to schedule recordings from anywhere, and just the better interface from the Motorola box than Scientific Atlanta (albeit still slow and outdated). Although I had to deal with higher compression and lower quality, the extras made up for it.

After my second attempt at building a HTPC over the holidays (the first was just an expensive disaster a few years ago), I was just blown away at how much better the whole process has become. I ordered a new ION motherboard (http://www.zotacusa.com/zotac-ionitx-d-e-atom-n330-1-6ghz-dual-core-mini-itx-intel-motherboard.html) and all the necessary components, installed Windows 7, and within minutes was able to stream full-length PBS shows with decent quality. It all just worked! Add in my Netflix acct. info and that night I was enjoying streaming movies in great quality using Windows Media Center.

My next step was to add a $30 USB tuner. Again, plugged it in, installed drivers, and it was instantly recognized by Media Center. I was shocked to see that the quality of OTA video through this tuner and my HTPC was identical to the direct OTA from the TV’s built-in tuner. Windows Media Center even includes a DVR and can access a public program guide. I had everything I needed.

Now there are some trade-offs. I’m going to have to figure out how to get back the total-home DVR functionality. This was a very handy feature for watching TV in the bedroom. I imagine another cheap HTPC is in order that can share the DVR content. I also really liked the the iPhone app that allowed me to schedule a recording whenever i thought about it, but I’m sure something will come along soon for my HTPC.

Now while I had to put in some effort and work to get all this up and running, the future of WiFi-enabled TVs and Blu-ray players will be big game changer in the next few years.

As they’re the only provider in my area for high speed service.. nobody has any choice unless they go with the slower 1mbit Telco service for $80/mo..

I on the other hand am cell-only (Sprint) and single-play with Comcast (internet). Right now I’m paying about $60 per month for broadband access, thanks to a recent modem rental price hike. In the next month or two (or has it happened already) my six-month price promotion with them will expire and I’ll pull my owned DOCSIS 2.0 modem out of storage, switching to the $55-per-month 12/2 service to keep my Comcast bill in check. It’ll be hard getting used to the lower upload speed (2 Mbps vs. 5 Mbps) but the data transfer cap is the same and I don’t want to pay $80 to Comcast (and won’t notice the difference between 12/2 and 16/2 for most stuff, so it’s not worth the $10 price difference).

Would I pay more if better internet was in the area? Absolutely…I’d jump at $70-per-month 25/25 FiOS. But that isn’t here so my cost-cutting (though not quite cord-cutting) continues. If Comcast pushes me too far I’ll go back to using my apartment complex’s Qwest line; it’s slow but faster than Comcast’s economy service. *shrugs*

They hate it when we watch shows on Hulu or movies from Netflix instead of “Their” overpriced HBO channels (especially using their network). Oh, that just drives them mad with rage!