Comcast Corp. (CMCSA) is likely to start its nationwide TV Everywhere service, named “On Demand Online”, within the next couple of months. TV Everywhere is basically a broadband video service that will enable pay-TV subscribers to watch premium cable programming online over broadband networks. Preference for video-on-demand (watching movie on the Internet) has increased significantly among customers. In addition, demand for online gaming and downloading of various multimedia applications has also gone up.
With TV Everywhere, cable TV subscribers will have access to any entertainment content developer’s library on his/her computer, notebook and mobile handset through an easy and quick authentication system that will link their pay-TV subscriptions to watch cable programming using a broadband connection.
Since last June, Comcast, together with Time Warner Inc. (TWX) is conducting a trial run for its On Demand Online service with 5,000 customers. The trial implemented a “check-in software” that verified the billing systems of cable MSOs to ensure that the customer has already paid for the service. Yesterday, the company declared that the trial run resulted in a successful authentication to protect the premium content provided by the entertainment companies.
Comcast is the largest cable MSO in the U.S., commanding over 25% market share. Nevertheless, in recent times, the broader entertainment, information and communication market has become highly competitive. Competition arises from both within the industry as well as from large telecom operators. Cable MSO Time Warner Cable (TWC) and telecom giant Verizon Wireless (VZ) have also decided to start the trial run of their own version of TV Everywhere services. Therefore, it is essential for Comcast to enter the market as quickly as possible for an early breakthrough.
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