Comcast is launching a Web version of its On Demand programming service. It’s part of a movement to get cable programming as widespread online as content from broadcast stations.

The Comcast service will be available, apparently without charge, to subscribers to the firm’s cable TV packages. Users won’t have to use a Comcast internet connection to see the footage.

On the surface, this doesn’t appear a financially lucrative idea, but there are a couple of benefits for Comcast. First, it may help deter cable TV subscribers from switching to another provider, getting a dish or (as belts tighten) dropping ‘excess’ TV altogether.

Second, the firm may be able to either raise advertising rates to cover the online viewing audience, or even sell separate commercial slots for the online broadcasts. The big question is whether such slots would command rates closer to TV advertising than the much lower revenues for Web site ads.

Reuters reports that Comcast is talking with both programming providers and cable and dish companies to find ways of working together on this and wider projects. This may include tackling the logistical problems of dealing with programs which are set to air in reruns or become available through DVD sales and legal download services. There’s also likely to be a need for a system to deal with premium channels which want online viewing restricted to their specific subscribers.

The other major issue which cable and Internet firms may work together on is the heavy bandwidth requirements which streaming video requires. Comcast has confirmed that viewing its online On Demand service will count towards a monthly 250GB downloading limit for Comcast internet providers.

However, there’s still a risk that if firms see themselves as competitors rather than providers, they might use download limits as a way of promoting their content. Business Insider speculates that Internet providers might exempt their own content from download limits, or even impose extra charges for viewing content from other providers. That would also raise legal questions over whether such policies breached net neutrality principles.

Related:

Entry was posted on Tuesday, February 24th, 2009 at 2:23 pm under Online video.

Read more entries by John Lister.
Stumble It!