Dan Frommer of the Silicon Alley Insider did a story on a web video on demand offering from Comcast that will be launching later this year.  It will mostly feature new content from cable networks that isn’t already online elsewhere, and Frommer notes that the cable networks have not put as much content on Hulu.

Most of the content will be free if you’re a Comcast subscriber, though you won’t necessarily need your Comcast connection to get it — but you will need to be somewhere Comcast is available according to Frommer.

Why are these cable networks working with Comcast but not as freely with sites like Hulu? It’s a simple math problem.

Cable companies like Comcast, Time Warner Cable (TWC), etc., generate a huge chunk — say, around half — of the revenue for cable networks. TV ads generate about half, too. Meanwhile, online ads generate very little. That is why Food Network might hypothetically put ten seasons of “Good Eats” on Comcast’s ‘OnDemand Online’ but not on Hulu. – read the rest on Silicon Alley Insider.

Posted by:TV By The Numbers

blog comments powered by Disqus