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How will Hi-Def Streaming Media affect the cable and satellite companies?


A few weeks ago I did an article about Hulu’s announcement to introduce a paid service in addition to their now existing free content.  This “Plus” service, which will cost $9.99 could very well be just one example of how things are about to drastically change in how we Americans (and perhaps the world in general) watch TV.

Recent studies have shown that more and more people are considering this new alternative (Streaming Media) as their main source of entertainment.  There are initiatives from subscription television services such as cable and satellite to provide their customers access to the same programming they receive at home, streamed to them via the internet to a multitude of devices and platforms.  A recent study by The Diffusion Group polled broadband users and found that 60% of the users are enthusiastic about this new source of entertainment and a total of 34% of them would be willing to pay at least $5 extra per month for the service.

Now while this could turn out to be an important new source of revenue to the cable and satellite providers, the really interesting point is the fact that people are becoming not only more aware of the diversity and quality of streamed media, but also that there are some major players entering this new arena!  As we watch companies like Hulu with their new Plus service and Google with Google TV join other big named companies out there, one can only wonder at what point will people come to the conclusion that paying $10/month for 720p high definition content (which happens to be the same content they get on cable or satellite) makes a whole lot more sense than paying the $100 per month most of us routinely pay for cable or satellite!

In my article two days ago I discussed Netfix’s newest moves in the Media Streaming arena and the fact that they will be able to stream movies the same day that they are released to the subscription channels.

It seems to me that we are witnessing a very rapid shift to streaming content and that everyone from movie studios to service providers are well aware of it.  I think that it’s going to be very interesting to see how this all pans out! Stay tuned!

So…what are YOUR thoughts?  Leave a comment and let us know if you think streaming media really will catch on with players like Netflix, Hulu, and even Google jumping in the game!

[via HDTV Magazine]

About the Author

Tom AbellPut simply, Tom loves technology! Having been involved in the IT world since leaving the US Navy Submarine Force in 1992, Tom has moved his way up to the top as an IT Systems Engineering. But having spent some time in the Home Automation industry early in his career, he’s never been able to shake his love for creating integrated Home Technology environments and has been running HTPCs and Windows Home Servers for years. With 17 years of IT Systems Engineering experience, Tom's recent OIF 08-09 deployment has rekindled his love for the Connected Home Industry and hence, the website. We hope you like the site, please share it with your friends and follow us on your favorite Social Networks! Read more about Tom on the "About Us" page.View all posts by Tom Abell

  1. Michael

    It will be interesting to see if the ISP can keep up witht he bandwidth demand this will place on it.

  2. Alan

    Will Hulu and other sites like it offer HBO? There is a large number of us 'series junkies' that anxiously wait for new episodes of True Blood and as far as I know, you can only get such channels via a sattlelight/cable provider. To me, that's a shoe in for a continued paying customer base. When viewing channels like HBO and Showtime, granted you get a plethera of movies to watch but the real drive especially now seems to be the series they produce. If there was another way to watch those series without a major (1 week) time delay, I think consumers will gladly trade in the $100 for $10.

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