Monday, January 10, 2011

Are "Smart TVs" a Threat to Cable TV?

Internet-connected TVs pose some problems for cable TV operators, satellite and telco TV providers. Obviously, in making direct access to Internet video a lot easier, Internet-capable TVs create more danger for linear video providers in a strategic sense, allowing people to view video on their home TVs without a lot of work.

To the extent that cable operators always have seen the set-top decoder as a gateway device, the widespread availability of TVs and third-party devices that make it easier to watch Internet video on a home TV also threaten to weaken the hold linear video providers have over their customers.

Netflix streaming looks to be emerging as a primary case in point.

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