Thursday, May 07, 2015

saving the cable box?

The traditional cable TV box is dying a slow death as Internet streaming video services blossom. That has some in the cable industry ready to join the streamers.

Over the past two weeks, a half dozen smaller cable TV companies, including Cablevision Systems (CVC), have announced plans to integrate Hulu’s streaming service into the boxes they lease to customers. Those deals follow several Netflix (NFLIX) forged last year to integrate its fare into the boxes used by several small cable companies and Dish Network (DISH), and are similir to the integrations Netflix has done with European pay TV providers.

The goal is to make switching from cable TV viewing to these “over the top” streaming services as quick and painless as possible for consumers. Cable operators believe merging a streaming video service into the cable box will help them sell high-speed Internet to subscribers by making their Internet connection that much more important. Faster speeds offer a better user experience, and cable providers can charge more for speedier connections. Across the industry, cable companies are investing to increase their speeds, which will allow them to offer new tiers of service—and boost profit margins.

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