http://www.latimes.com/business/la-fi-ct-tveverywhere25-2009jun25,0,1463904,print.storyThe initiative would require people to prove that they subscribe to a video delivery service -- cable, satellite or telephone -- to watch certain shows online.
By Joe Flint
June 25, 2009
A plan by Time Warner Inc. and Comcast Corp. to ensure that people who watch TV on the Web are already cable-TV subscribers faces several hurdles, including the technical -- a workable encryption system -- and the political -- whether consumers will view it as an attempt to wall off free content.
The initiative unveiled Wednesday, which Time Warner is calling TV Everywhere and Comcast has dubbed OnDemand Online, would require people to prove that they subscribe to a video delivery service -- cable, satellite or telephone -- to watch certain shows online.
Comcast, the nation's largest cable operator, will soon begin testing the service with customers.
But a major challenge for Time Warner and Comcast is designing an authentication system that identifies a consumer as a cable-TV subscriber but also is easy to use. Consumers are already overwhelmed with online passwords in their personal and professional lives, and another one could be an impediment to adoption of a new service, experts say.
"The technology has to work for the consumer. It cannot be obtrusive," said Quincy Smith, chief executive of CBS Interactive.
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Both Time Warner and Comcast stress that they do not view their partnership as a way to stifle the shift to viewing content online. They say it is a way to preserve the current economic model of the business while offering consumers more platforms on which to watch their favorite shows.
"It is a very innovative model that the industry has," Time Warner Chief Executive Jeff Bewkes said Wednesday in announcing the partnership. "We are trying to take that basic structure and put it on the Internet, augmenting its appeal and its convenience."
The two companies said they expected others to come aboard in the near future.
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