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Intemet, will make them available online at no extra cost to people who can prove they subscribe to a cable or satellite package that includes the channel. Rival networks and cable providers have pledged to co-operate.
It is an attempt to preserve what is now plainly the core business of the slimmed-down Time Wamer - and which also happens to be one of the most dependable rackets in media.Subscribers to multichannel television, who may get it from a cable, satellite or telecoms firm, pay for "bundles" of channels, whether they watch them all or not. They are also shown advertisements.Content providers like Time Warmer receive carriage fees from cable and satellite companies, which account for about half of their revenues - and the great majority for premium channels like HBO.These frees are a bulwark against shocks to the advertising market, and they tend to go up faster than inflation.
At present the Intermet poses a puny threat to this commercial redoubt. ComScore, which tracks Intemet use, reckons the average American web user spends about 10 minutes a day viewing online video, from water skiing squirrels on YouTube to the latest episode of "heroes" on Hulu. That compares with roughly 300 minutes spent watching life television. But the audience for online video is young and growing, the barriers that prevent people from piping it into their television are
like FUO and the broadcast networks are quickly movina online.
