RainbowMedia
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Network exec thinks Hulu is teaching bad habits
If there was any doubt as to why the content owners asked Hulu to make life hard on Boxee, these recent comments by Rainbow Media's CEO Josh Sapan should pretty much clear it up. He tells Multichannel news that putting shows up on the internet shortly after they air on TV is doing nothing other than creating "bad habits." The article goes on to explain that the reason why you won't see as much of Rainbow Media's content online is because "such actions will eventually undercut the healthy advertiser/affiliate-fee dual revenue stream that networks enjoy" -- so you should have to pay for content and you should have to watch the ads. If at this point you're yelling about the all the ad-revenue generated when people view the same content on the web, according to NBCU president of TV Networks Distribution Bridget Baker "it's a drop in the bucket compared to ad revenue on linear cable channels." The interesting twist to their perspective is although these execs don't seem to understand that people actually prefer to watch TV, on their TVs, and not on small laptop screens, they do recognize that there is no stopping this movement. So their bright idea is to change the direction of the movement in their favor. The intent of the plan is to authenticate subscribers before allowing web access. So in other words, if you don't subscribe to cable TV, then don't expect access to the content on the web -- nice plan huh?
Cablevision's Rainbow Media snaps up Sundance Channel for $496 million
Don't peek -- which would you think is cheaper? A fiber-to-the-premises network touching 36,000 residents and businesses, or a 12-year old television channel? If you guessed the latter, you'd be badly mistaken. While iProvo was sold for a mere $40.6 million, Rainbow Media, the cable programming subsidiary of Cablevision, had to cough up nearly half a billion dollars ($496 million, to be precise) in order to claim the Sundance Channel as its own. Yes, the Sundance Channel. Richard Greenfield, an analyst with Pali Research, seems to think that Cablevision may try to combine its newest acquisition with Independent Film Channel, which just so happens to have a high-def counterpart. Of course, it's hard to say what will happen with it so soon after the buy, but if the sale ends up creating another (or more widespread) HD channel, we're all for it.
