Cablevision, Turner Sign Streaming-Video Deal
The deal will grant Cablevision subscribers next-day access, at no additional charge, to programming from TNT, TBS, Cartoon Network, and TrueTV that users can watch on any Internet-connected device, including Apple’s (NASDAQ:AAPL) iPad, iPhone, and iTouch. Subscribers will also have access to live-streaming of Turner-owned news channels CNN and HLN.
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Turner TV Everywhere will be a complement to Cablevision’s Optimum app, which makes live streams of all its channels available on the iPad. The new service, which will require subscribers to go through an authentication progress, differs from the existing program in that it allows users to watch programming on demand, and will be available outside the home.
The strategy will allow Cablevision to better compete with online video-streaming services like Netflix (NASDAQ:NFLX), which usually come with a significantly lower monthly subscription price. A Credit Suisse (NYSE:CS) report found that the availability of authenticated services like TV Everywhere is on the rise, with the portion of pay TV subscribers with access to some form of authenticated content growing to an estimated 89% by the year’s end, up from 61% in 2010.
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Cablevision, owned by Time Warner (NYSE:TWX), which also counts Turner Broadcasting among its subsidiaries, has been more aggressive than most in deploying authenticated programming. While most of its rivals have one or two distributors signed up, Turner TV Everywhere is already available on Comcast (NASDAQ:CMCSA), Dish Network (NASDAQ:DISH), Cox, Verizon Wireless (NYSE:VZ), and AT&T (NYSE:T). Only HBO Go, also owned by Time Warner, rivals the TV Everywhere in terms of its digital extension. Prior to the deal with Turner Broadcasting, Cablevision’s only authentication partnerships were with the YES and Speed networks.