Streaming-only cable service could come in 2014

After years of speculation, industry experts say Internet-based TV could become reality by the end of next year.

By Benzinga Dec 12, 2013 3:53PM

Verizon Chief Information Officer Shaygan Kheradpir shows a software application that allows FiOS TV customers to watch live television on an iPad in New York, August 18, 2010. © BRENDAN MCDERMID/Newscom/RTRBy Jim Probasco


Speculation about so-called over-the-top or streaming cable via the Internet has been around for years. 


According to some TV-industry experts, it may be about to happen -- as early as in 2014.


Viacom (VIA) CEO Philippe Dauman started the ball rolling at the UBS media conference in New York this week saying, "I think there's a very strong chance of that," speaking about the possible rollout of over-the-top service next year.


Debate has already begun about who would be the first to offer the service. The first name mentioned was that of Verizon (VZ), which has mobile rights to primetime NFL games.


Verizon was also reported to be in talks with Intel (INTC) for its "never launched" OnCue pay TV service. OnCue, which was slated to include TV and mobile streaming over an Internet connection, never got off the ground because Intel failed to secure content agreements with providers -- something Verizon would be in much better position to do.


In addition to Verizon, there has also been speculation about interest on the part of Dish Network (DISH), Comcast (CMCSA), Sony (SNE), Microsoft (MSFT) and even Apple (AAPL). (Microsoft owns and publishes MSN Money.)


After Dish and Comcast however, the others were considered less likely to be first in line with a streaming service. Of course, once somebody breaks the ice, almost all major cable and telecom companies would be expected to join in, according to one source who spoke to the New York Post.


Meanwhile, Verizon recently expanded its live-TV streaming options on its FiOS service, allowing FiOS customers to watch both CBS (CBS) and Fox stations in several East Coast markets on tablets and smartphones. Also available are Spanish-language networks UniMas and Univision.


The company now offers 25 cable channels for out-of-home steaming, although none are broadcast channels or among the more popular cable channels.


FiOS subscribers in these markets can also watch up to 91 cable channels on non-TV devices at home. This comes via an agreement between Verizon and two distributors, Time Warner Cable (TWC) and Cablevision (CVC).


Cable and telecoms see the writing on the wall. As streaming Internet entertainment offerings through companies like Netflix (NFLX) and Amazon (AMZN) continue to grow, cable providers know they have to both adapt and compete.


At the time of this writing, Jim Probasco had no position in any mentioned securities.


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10Comments
Dec 12, 2013 6:16PM
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Actually, cable companies need to wake up and smell the end.  Cable is rapidly dying; why should we pay for unreliable cable service when we can watch our favorite shows for free on our computers?  Okay, so you have to wait an extra day to see them on the networks' web sites; who cares?  It's better than having to shell out over a hundred a month for fifty channels when I only bother to watch three or four of them.  Cable TV has got to be the biggest waste of money out there.
Dec 12, 2013 6:05PM
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My question, How are we going to continue to pay for all these hi tech services....my cell phone bills (2) are around $175 per month and my cable bill about the same. My Gas, electric and water combined is around $200 so why are these tech bills so high?  
Dec 12, 2013 8:19PM
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haven't had tv for about 4 years now and don't miss it.  I can find a few things to watch online sometimes but TV as a concept doesn't interest me anymore.

If they get to the point where I can pay a few bucks to watch a baseball game whenever I feel like it without having to sign up for a service or contract, I might go for that.

Until that happens, I'll stick with my guitar.  (Gettin' better!)

Dec 15, 2013 9:01AM
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I have wanted to turn off the cable in my home for sometime now but my family acts like I'm cutting some sort of life sustaining device.  If Dish has anything to do with this, expect more of the same bs we have now and I highly doubt it will go anywhere fast.  Probably what Dish would hope for anyway. 
Jan 4, 2014 7:34PM
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  This article sounds like an advertisement for fios which without incentives is too expensive for most people.
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