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Cable TV Networks Utilize Broadband Video

According to Broadband Directions, one group of companies that is well-poised for success with broadband video are the top 75 cable television networks. In July 2005, they released their first market intelligence report, analyzing the cable networks' broadband video initiatives.

One of the 2005 report's key conclusions was that while broadband video represented a significant new business opportunity for these cable networks, many of these companies primarily considered broadband video a tool to promote their traditional broadcast programming.

Broadband Directions just released their 2006 report on this subject. They conducted a survey for the report with broadband video executives at 42 of the top 75 cable TV networks, which found that broadband video is now the 'number one' advanced services priority for many, far outpacing video-on-demand (VOD) and other advanced services.

The survey also found that many of the top 75 cable TV networks, in a dramatic shift from just a year ago, now consider broadband video to be an important source of new revenue, not just a way to promote their linear broadcast programming.

Currently 99 percent of these networks -- 74 out of 75 -- offer broadband video from their web sites, with 50, or 68 percent of them now deriving revenue from their 'direct to consumer' broadband video initiatives.

Broadband video is now the front-and-center business opportunity for many top cable TV networks, demonstrating a remarkably swift evolution for these networks in just the past year since the initial report on this subject was released in July 2005.

Broadband Directions survey also revealed consistent reasons for why broadband video is now viewed as 'mission critical.' Though still early, cable TV executives see that broadband video generates real, not potential, revenues from audiences whose video consumption behavior is shifting radically.

They've learned that broadband video is easy for cable networks to implement. Plus, it gives them creative control of the user experience, and frees them from cumbersome technology platforms controlled by traditional distributors (cable, satellite, telco, etc).

These executives also noted that broadband video opens up unprecedented brand extension opportunities for top cable TV networks. It is increasingly evident that cable TV networks must compete in the broader video marketplace which now includes highly successful new market entrants such as YouTube, MySpace and many others.

However, the report also reveals that top cable TV networks see some restrictions in current 'carriage agreements' with distributors as the single biggest challenge to their eventual success with 'direct to consumer' broadband video.

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