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Time Warner Cable’s Last Hope (oh, and Comcast et. al.)

: Image via Wikipedia

There is no denying that cable companies are facing some big challenges to their business model. Until very recently, the only reliable way to view the vast majority of programming made for TV was to pay a hefty monthly fee to a cable company for the privilege.

Over-the-air, while free, limits selection to the few networks that still offer signals and cable “black boxes” are relatively rare.

Then along came that evil internet to muck it all up for the cable companies. Since the only tangible service provided by the cable company is access, the internet is one big wrench in the works. See, the internet provides access, too. Until now, nearly all of that access, whether legal or pirated, was free. Suddenly, some people began to wonder just what they were paying all that money to the cable company for.

Well, the cable companies are wondering the same thing. Instead of looking for a way to offer even more to their customers for a lower price, or some other direct response to the online proliferation of TV on the web, they’ve decided to do what they do best: throw up walls.

Time Warner Cable, the second-largest cable operator in the country, is working with customers here to test a subscriber model for online TV viewing. Residents who pay for HBO can watch “Big Love,” “Entourage” and other programs on their computers, using special software and a personal log-in. People who are not HBO subscribers are barred from the service.

Anyone else see the problem with these approach?

For starters, Time Warner isn’t actually offering anything that great to its paying subscribers since there are plenty of ways to view the same content online for free. The more paywalls they erect, the more likely it is for piracy to expand in response.

The same would be true if only cable subscribers could access, say, Hulu or TV.com. While there might be some logic in this approach with a pay-cable network like HBO the argument collapses when applied to network TV shows that are chock full of branded content and ads.

It may well be true that the evolution of technology makes things like cable companies obsolete but that doesn’t mean we should support these kinds of schemes to save them. If there is no economic reason for cable companies to exist they should cease to exist.

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