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Is Hulu Cutting In To Pay TV Revenues?

by Sean P. Aune | November 4, 2010November 4, 2010 12:00 pm PDT

There has been a lot of talk about if cable customers are “cutting the cord” or not, and walking away from paying monthly subscription fees for television. Depend on who you talk to it has happening more and more, but no two parties can seem to agree in what numbers it is really happening. Well, it seems Dish Network definitely thinks it’s real, and it isn’t making them very happy.

According to GigaOm, Dish Network VP of Online Content Development and Strategy Bruce Eisen was speaking at the Streaming Media West conference on a panel about cord cutting, and he definitely had some opinions about online video.
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If I can watch Glee tomorrow morning and I don’t have to pay a pay TV service –- I think that’s bad. If people decide that they don’t have to pay for pay TV, then one of the pillars (of the TV industry) starts crumbling.

Greg Kampanis, SVP of Content Strategy and Operations for South Park Digital Studios, had a different opinion. After seeing South Park being constantly pirated, the company decided to put all of its episodes online for free so they could at least reap advertising revenue. Now South Park has a nice ad revenue stream going, and instead of all this free content hurting them, they just had their highest rated season premiere.

A study discussed at the conference showed that 3.9 percent of respondents between the ages of 25 and 34 had already cut the cord, and another 30 percent were looking to do the same within a year.

While once again we are shown that no one can agree on what’s happening with the cord cutting trend, one thing is clear that future success seems to be predicated on the attitude of the companies going in.  Dish Network just seems angry, while South Park Studios has just fully embraced the concept and is reaping the benefits of it.  What’s the old saying about attracting more bees with honey?

What say you?  Is cord cutting going to destroy the television industry?


Sean P. Aune

Sean P. Aune has been a professional technology blogger since July 2007, but his love of tech dates back to at least 1976 when his parents bought...

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