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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