The Great Wall of Pay

Now that the cable industry’s “TV Everywhere” online video platform has been established, some programmers are discovering they can become lucrative revenue streams as well as a deterrent to cable cord-cutting.

Time Warner (no relationship to Time Warner Cable) and CBS have decided giving away live sports programming for free is unacceptable and will now charge for online viewing of certain March Madness basketball games.

Since 2006, the basketball tournament, which may include hoops from https://www.megaslam.com.au/adjustable-basketball-hoops/, has been available for free online viewing, but starting March 7, viewers will need to pay $3.99 for full access to all 67 games [and basic cable viewers will need to verify] they are current cable, satellite, or telco TV subscribers. [See clarification below.]

Online viewing of games televised on CBS will be available for free, but the new paywall will block free access to selected games shown on cable networks TNT, TBS, and TruTV in certain cases.

Time Warner CEO Jeff Bewkes sees charging for online viewing as a substantial new revenue stream.

Monetizing online viewing is a high priority for programmers, even though much of the programming will continue to carry commercial advertising.  Last year, an estimated 2.6 million daily visitors watched March Madness online.  At $3.99 each, that would net the two companies nearly $10.4 million dollars.

The madness will now cost you $3.99

In a separate announcement, Comcast says it will launch a new Netflix-like on-demand streaming service tomorrow for its cable subscribers.

Streampix (free for triple play customers, $4.99/mo for others) will offer on-demand movies and TV series licensed from NBC-Universal, Warner Bros., Sony Pictures, and Disney.

Selected content can be watched while on the go, but a substantial amount of what Streampix is expected to offer is already available through services like Hulu.

Streampix is designed to appeal to customers who currently pay $7-8 a month for Netflix or Hulu+.

The move establishes Comcast’s own “paywall” for a deeper catalog of online video content, supplementing programming it gives away at no charge to “authenticated” cable subscribers.

Comcast will not sell Streampix to non-Comcast customers.

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Bloomberg reports Comcast’s Streampix service is unlikely to pose a major challenge to services like Netflix.  (4 minutes)

Clarification:  A reader suggested we better clarify the viewing options.  It gets complicated depending on what kind of video/broadband subscription you have, where you want to watch, and what kind of feed you want:

CBS-televised games: Available for free with no restrictions from CBS website.

Basic Cable games: If you want to watch outside of the home, on certain portable devices, or do not have a combined broadband/cable-TV subscription, you will need to purchase a subscription for $3.99 from the NCAA.  Free streaming is only available to authenticated cable/broadband subscribers watching from their home broadband account on devices pre-approved by your pay television provider.

Open/Full Access: If you want full, unrestricted access you need to pay for the NCAA ® March Madness ® Live™ app ($3.99).  Since this app provides the NCAA’s own video and audio feeds, you don’t need a cable subscription.

TWC TV for PC (and Mac too!)

Time Warner Cable this morning introduced a “beta version” of Time Warner Cable TV for PC, the latest iteration of the company’s “TV Everywhere” project.

TWC TV requires a current cable television subscription, a Time Warner Cable My Services registration, and a home computer with a current version of Silverlight (if you do not have it, it will likely prompt you to download it).  You do not have to use Time Warner Cable broadband to access the service.

In addition to streaming live TV to the desktop, you can manage DVR listings and remotely change channels on your set top box — the ultimate in laziness if you’ve misplaced the remote control.

We’ve been testing the service here at Stop the Cap! headquarters this afternoon, and so far the service works as described with few glitches.  The channel lineup is similar to the company’s streaming service for Apple’s iPad.  Missing are local channels and cable networks with whom Time Warner has yet to secure streaming agreements.

Video quality could stand some improvement, however.  Netflix and Hulu appear to use higher bit rates than Time Warner is using during its beta test.

Here’s the full list of features:

1. Live TV – Users scroll the “channel browser” to see a list of available channels with listings displaying network logo, show name, and episode name.
2. Guide – Up to 7 days of listings data. Option to filter guide display by “favorites only,” “HD only” or ”available to watch on PC.” You can also set channels as favorites from the Guide.
3. Set-top box tuning – “Watch on TV” button within the program description to tune an MDN/ODN set-top box directly to the channel.
4. PC tuning – “Watch on PC” button within the program description to tune PC directly to the channel.
5. DVR management – Schedule one-time and series recordings on MDN/ODN DVRs directly from the Guide’s show pages. Click on the “DVR” tab to see a list of all upcoming recordings and make changes or cancel recordings.
6. Search – Ability to search the Guide by show title, episode and/or by person.
7. Settings – Ability to manage Favorite channels, link to set Parental Controls, choose the Device (STB/DVR) to which you are connected for STB/DVR management, and turn on/off Closed Captioning on the website’s video player.

This will work for both PC and Mac. Here are the supported browsers:

• Internet Explorer 7.0 and up
• Firefox 4 and up for mac and windows
• Safari 5 and up for mac and windows
• Chrome: Latest stable release which is 17

You’ll need to download or possibly upgrade Silverlight to version 4.

(Customers with iGuide set-top boxes and analog video customers cannot tune their TVs using the TWC TV apps or website. Analog customers and those with iGuide and SARA boxes won’t have access to the TV tuning or DVR features, but are offered a basic program guide based on the zip code on their accounts.)

[Updated 9:09am 2/15/12 — Thanks to our readers, we now know “you have to be connected to a Time Warner Cable network connection, with a modem on your account to connect to live TV.”  We stand corrected.]

HBO's Go service streams HBO movies, specials, and series to "authenticated" HBO subscribers

Time Warner Cable began testing its HBO and Cinemax Go “TV Everywhere” online video services Wednesday, starting with a private beta test for their super-premium Signature Home customers who pay $199+ for cable, broadband, and phone service.

Signature Home customers signed up for HBO and/or Cinemax will receive e-mail from the company that includes login instructions for the authenticated video service, which will be included in the cost for both premium channels.  Customers must subscribe to one or both premium channels for access.  Time Warner Cable’s Jeff Simmermon says other Time Warner Cable premium channel subscribers will get access as soon as next week.

For now, Time Warner’s implementation of the online video services will support Mac and PC computers.  Tablet and smartphone owners will have to wait for respective apps coming at a later date.

The cable company’s gradual rollout of the streaming video service is designed to prevent subscribers from overloading the company’s servers, which happened with the introduction of its iPad online viewing app.

“Rather than spend time aggregating a large list of volunteers across our footprint, vetting them against various eligibility requirements, and making sure that each of our markets is equally represented to arrive at a final approved master list, we’re going with all SignatureHome customers,” Simmermon said. “This will allow us to take a representative sampling from across all markets — which have varied tech infrastructures — without overloading our systems.”

Time Warner is one of the last major cable operators to unveil the premium movie channel streaming service.

More than 1,400 movies, specials and series are available for streaming from HBO Go.  Cinemax’s counterpart is more limited — just over 400 movies and soft core adult entertainment from its Max After Dark series.

Verizon Communications plans to introduce its own standalone streaming video service that will compete head-to-head with Netflix, according to a breaking, exclusive report from the Reuters news service.

The phone company is said to be in negotiations with several programming partners that could make available popular movies and television shows on the service, which would be sold exclusively in areas not wired for Verizon’s fiber-to-the-home service FiOS, starting early next year.

Netflix stock once again took a pounding on the news, down as much as 5%.  Netflix has experienced serious challenges in its transition to a streaming service, including intransigent programmers who want to be paid considerably more to extend licensing deals.  Netflix has been forced to raise prices and split its DVD rental and streaming plans, provoking anger among subscribers.

Reuters reports the service will have a limited offering from the outset, perhaps picking up expiring contracts Netflix had with Liberty Media’s Starz Play and Viacom’s Epix.  Epix includes titles from Paramount, Lions Gate and MGM, and is set to expire at Netflix next September.

Verizon is said to be interested in expanding its services beyond its FiOS customer base to obtain better rates from programmers.  The more subscribers with access to your service, the better the volume discount.  By limiting the new movie service to non-FiOS areas, Verizon will protect from cannibalizing customers from its own fiber network while opening the door to lower per-subscriber costs for programming.

Analysts say the deal will likely be closer in comparison to Amazon’s limited streaming service, available at no charge to its Amazon Prime customers.  Netflix has a broader catalog of online titles.  But they expect Verizon to price the service competitively with Netflix to attract customers and compete for similar programming rights.

Verizon may repackage content originally intended for the standalone streaming service for its existing FiOS customers under a TV Everywhere concept, meaning the programming would be accessible to FiOS subscribers who maintain video subscriptions with the phone company, perhaps without any additional charges.

[flv]http://www.phillipdampier.com/video/CNBC Netflix Stock Takes a Hit 12-6-11.flv[/flv]

Netflix stock is still being pounded, now even more so after Verizon’s announcement it is entering their business space.  Will Netflix ultimately be sold to a bigger player to survive?  CNBC investigates.  (4 minutes)

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The Wall Street Journal digs into Verizon’s video announcement, and how it will likely impact Netflix and the online video marketplace.  With a programming bidding war, customers may actually end up paying more for online video.  (5 minutes)

Netflix is selling $400 million in stock and convertible notes to bolster its cash-on-hand as the company faces the imminent loss of important video content for its streaming movie service.  Netflix stock has paid the price in what some investors are calling the worst deal ever. Michael Pachter, an analyst with Wedbush Securities, suspects banks might be turning Netflix down for traditional, less expensive bank loans, leaving the expensive stock sale its only alternative.

Netflix continues to lose subscribers upset over recent price increases and impending content reductions on the company’s streaming service.  Much of Netflix’s more-recent streaming movie library comes from its expiring deal with Starz, and that content will disappear in February.

Banks may be worried the forthcoming downsizing of Netflix’s online selection combined with increasingly expensive streaming renewal deals for the programming that remains may make the company too risky, even if they use the money to acquire additional content. The company might be one rate increase away from a subscriber exodus.

Netflix CEO Reed Hastings isn’t inspiring confidence among investors either.  He’s been selling nearly 5,000 shares of Netflix stock every week since the beginning of the year, according to filings with the Securities and Exchange Commission.  If Hastings ultimately dumps 260,000 shares in the company he founded, investors wonder, why should they buy?

The Wall Street Journal financial MarketBeat blog wonders just how many more blunders are in store for the former high-flying company:

So Netflix is raising a bunch of cash by selling stock when it’s super cheap, after spending a lot of money earlier this year buying back stock when it was super expensive.

This comes after it raised its prices high enough to irritate half its customers, then tried to chase off the other half by shunting them off to a splinter company named after a pot-smoking Elmo. Then it said, never mind, just kidding, please don’t leave us. We can’t wait to not read the business-school papers written about this one!

For some mysterious reason, investors are once again fleeing in disgust from Netflix’s stock, which is down more than 4% this morning at $71. And analysts are not too pleased, either — although, these being analysts, there are of course some who say everything’s just fine, the stock’s a great bargain.

Pachter believes either the company’s chief financial officer is “a moron,” or the company is in growing trouble, unable to convince traditional lending sources with cheap money to share some with Netflix.  The company still expects a financial loss in the coming quarter, although it says subscriber flight is now diminishing.  Netflix is also trying to find new content to keep subscribers satisfied, although much of it consists of repeats of low budget cable documentary and reality shows. Considering these challenges, affordable liquidations could provide financial relief and a strategic approach to managing their resources effectively.

Completely overshadowed by the stock sale are two just-announced Netflix acquisitions: a recommissioned Arrested Development, a quirky comedy which ran on Fox from 2003-2006, and the BBC’s ruthless 1990 political intrigue mini-series House of Cards.

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Michael Pachter, an analyst with Wedbush Securities, talks about Netflix’s agreement to sell $400 million in stock and convertible notes to bolster cash as it increases spending for online rights to films and TV shows. (Bloomberg News)  (8 minutes)