Intel also continues to drive access to content on Intel-based devices by working with video service providers around the globe such as Comcast and Bouygues Telecom to create television experiences that will allow customers to view live and on-demand pay TV content.
Basically home gateway enables full premium of full pay TV and VOD content without any set-top boxes.
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Lately, the betting seems to be on Apple making a settop box that would meld live TV for existing pay-TV subscribers with iTunes content under a more intuitive user interface, but it seems that the TV powers that be are wary even of that small step.
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Several disputes between pay-TV companies and content owners in the last few years further strengthen this fact.
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The rise of online video also threatens to break up the industry's pricing model as fragmenting TV audiences find more opportunities to pay only for the content that interests them instead of the bundle of channels that traditional pay-TV operators typically sell to customers at one overall price.
"The opportunities for broadcasters like the BBC with vast archives and pay TV operators to repackage their content are tremendous, " said Peter Simpson, chief technologist at British manufacturer Pace Micro Technology.
The deal gives Comcast greater control of media content and a distribution advantage over other pay-TV providers by furthering its own on-demand content and providing income on content it allows others to carry.
Rather than charging top euro for delicious content, pay-TV distributors are trying to hook Germans on technology.
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In other countries digital video recorders and other technologies are add-ons to pay-TV packages stuffed with desired content.
ECONOMIST: Another push to sell pay-television to the Germans
As a result, broadcast networks have been especially aggressive in pushing for higher fees from pay-TV providers that retransmit their content.
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"A significant portion of any pay-TV bill goes to fees for content providers like AMC Networks, " said Shull.
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Consumers flocked to HDTV because of falling set prices and the massive volume of HD content available from pay-TV service providers like Comcast and Time Warner Cable.
However, they need to carefully balance the quality and quantity split of their content between streaming and pay-TV channels to avoid conflict and cannibalization.
Content owners, advertisers, pay TV operators and other players in the digital TV industry can now generate and manage vouchers, including those that promote specific merchants, facilitating an entirely new class of consumer engagement.
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Only a few years ago, pay-TV service was the primary medium for video content however this is changing now.
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This could indicate that competition is increasing for Netflix and that the cost of acquiring newer content to compete with these pay-TV service providers will rise.
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Original content is distributed across channels in pay-TV industry but the pay-TV packages ably combine these channels to offer convenience to viewers.
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We expect studios to maximize their content monetizing potential through alternative mediums (other than traditional pay TV) like gaming consoles.
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Anyway, the NY Times article goes on to make an example of a content distribution deal that Netflix has with STARZ , a pay TV service which has the cable rights to films from Sony( SNE) and Disney ( DIS).
They have no intention of letting Apple into their henhouse, even if Apple is willing to pay the many billions of dollars it would take to get access to live TV content.
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Media stocks have risen in general in the recent months as advertising market shows promise, and the demand for quality content continues to increase due to increasing competition between the pay-TV and alternative video service providers.
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By making it easier for viewers to record shows and skip commercials, pay-TV companies may provide an incentive for studios to stream more of their content on the Web, where they can easily force viewers to watch ads in their proprietary video players.
Presently, HBO Go only shows content to folks who subscribe to the channel via their pay-TV provider, but Plepler seems to think that there's potential to sell monthly access to the app itself so long as buyers are also subscribed to a broadband internet connection.
Not only will this content be more expensive, but it will further threaten the pay-TV providers as it will give their subscribers an incentive to drop cable subscriptions, for example, and subscribe to Netflix.
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As the owners have invested in other digital video initiatives building up their own websites, streaming shows to pay-TV subscribers through a strategy called "TV Everywhere, " and licensing some content to other subscription video players like Netflix Inc.
With its iPod, iPad, iPhone, Apple TV and most importantly iTunes products, Apple has changed the way people consume and pay for content.
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With the above, an average viewer can watch free broadcast content with high quality picture and still potentially save money compared to average pay-TV subscription service.
However, as traditional pay TV service providers leverage their established relationships with studios to enrich their VoD and pay-per-view content, we expect that they can successfully combat emerging threats from gaming consoles.
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Watching content on your computer is one thing, but the ability to conveniently stream the same range of content on your TV (for free) could add a new level of competition that pay-TV providers are likely hoping to avoid.
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By requiring authentication to access live programming on new media devices, ESPN and its distribution partners are extending their lucrative pay-TV business model onto the Web as the Internet becomes a more mainstream place for consumers to watch video content and a potential replacement to traditional TV.
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