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Is Cable Threatened by Internet Video? Latest Time Warner Trick Imitates the Web

October 19th, 2006

In recent months, we’ve reported on the growing diversity of video content on the Internet and on the various means of getting it to TVs in the living room and throughout a home network. This on-demand content has grown from short, low-def video clips to network TV shows and feature movies. However, in an offering that seems retrograde, Time Warner Cable has launched a service called "Quick Clips" that allows digital cable customers to access short-form video content on-demand on their TVs. We think it’s curious that instead of distinguishing itself from the Internet that a cable company would emulate it.


John DiLoreto
Analyst and Editor
of Insight Media

The Quick Clips service, initially available to its 150K subscribers in South Carolina, offers shorts from CNBC, CNN and The Weather Channel. According to Time Warner Cable, Quick Clips uses IP technology and new software to push content created by the participating channels for its own websites. The "Enhanced TV" content is available within minutes of Web posting, the MSO says.

Interestingly, the clips are integrated with each channel’s normal programming. For example, a subscriber watching an episode of The Weather Channel’s, "Storm Stories," could press "select" and access additional content, such as a local weather forecast. Once the subscriber finished viewing the additional content, he or she would be returned to "Storm Stories."

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Subscribers are alerted to the new feature via on on-screen prompt that announces the available clips from that channel.  When they press “select,” a menu appears showing all the “Enhanced TV” features, which include the network DVR service, Start Over (jump to the beginning of the current program), as well as the new Quick Clips service.

But why add Internet video clips to that mix?  This analyst believes it’s the same sense of threat that led the cable companies to add phone and Internet service to create the so-called triple play. 

The threat may be real, however.  For example, consider the recent announcement that Fox’s online VoD service (already on many Fox-related sites) would also be available on MySpace, the popular community site just acquired by Fox’s parent, News Corp.  The Fox VoD service features an array of new and returning Fox primetime episodes, also available in HD streaming.

Now you can have it both ways, primetime TV with your short clips via the Internet, and Internet clips with your primetime TV.  These latest announcements are yet more evidence that a brave new world is developing in the availability of video content on-demand. 

We applaud Time Warner Cable’s advances in making TV a more complete viewing experience.  The cable company says that it expects to increase the number of channels offering the Quick Clips service and that it plans to launch the service in additional markets later this year.

No word yet on pricing for the new Quick Clips service, but it will most likely be a part of a bundle of “Enhanced TV” services, all of which would be more attractive if they were only less expensive.  Meanwhile, Time Warner should note that the clips on the Internet are free. –JD

3D Workshop
HDTV Expert