Parks Associates Blog

Monday, October 25, 2010

Can I rely solely on Internet streams to replace traditional TV? Netflix says yes, while the studios say no

Here are a couple of news items that show both sides of the potential "cord-cutting" story.

First, Netflix is reported to be trialing a streaming-only plan, costing $7.99 a month. Or, is it $8.99 a month?

At the same time, the studios are taking a harder stance to the availability of ad-supported streams of television shows, reports the Associated Press. Broadcasters took a big step toward eliminating free TV shows on the Web after they blocked access to their programming online this month to enforce their demands to be paid.

Recent actions by Fox, ABC, NBC and CBS in two separate fee disputes suggest that after a few years of experimenting with free, ad-supported viewing, broadcasters believe they can make more money from cable-TV providers if they hold back some programming online.

And, the rumor du joir regarding Hulu is that its Hulu Plus service fee may be cut in half, to $4.95 per month.

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