Web-TV divide is back in focus with NBC sale
Written on December 7, 2009
For 60 years, TV could be watched only one way. Now, millions of viewers watch shows such as "Grey’s Anatomy" on demand and online on network websites such as ABC.com and on the Internet’s most popular streaming hub, Hulu.com.
How people watch TV on demand — and whether they should pay for the privilege — is a critical issue in the landmark deal, announced Thursday, that will give Comcast control of NBC Universal. In the deal, Comcast will become a co-owner of Hulu.
Like all its broadcast rivals, NBC rushed to put its popular shows on the Web years ago, hoping to secure a piece of the booming online advertising market and offset an eroding audience.
The viewers came in droves, but the ad revenues have not materialized as expected.
Comcast, the country’s largest cable operator, has already been using its considerable muscle to limit how many shows are available online, lest people think they can cancel their costly cable subscriptions and watch free online. Now the company — which, if the NBC deal passes government muster, will own a piece of the biggest site that threatens to undercut its core business — is looking for ways to charge for ubiquitous access to shows.
NBC and News Corp., the owner of Fox, jointly formed Hulu in 2007. Disney later became an equity partner in Hulu. On Hulu and sites like it, TV episodes are available any time, usually for a full month after they premi
Filed in: money.