Such a move would transform the cable and satellite business. TV Everywhere, by contrast, aims to preserve its essential architecture, Carriage fees and bundling would remain. Stronger channels would continue to support weaker ones, and more popular programs would support less popular ones. It is a potential solution to one half of the cable industry's worries about the Internet. Which leaves.the other half compared with television, online-advertising revenues are meager.
Hulu, the most impressive up the video websites, claims to charge advertisers somewhat more to reach a viewer than they would pay on a broadcast network during prime time. But Hulu runs just two minutes' worth of advertising in a 22-minute program, about one-quarter of the load that TV viewers are expected to tolerate. For broadcasters, which derive nearly all their revenues from advertising.deciding to put new programs on sites like Hulu involves a leap of faith.
Mr. Bewkes points to another problem. Several cable channels, including CNN, Time Wamer's news outfit, have painstakingly built brands that enable them to sell advertising at higher rates than they otherwise would. CNN also benefits by selling advertising across its TV channels and its
Next