Comcast, Time Warner Bullish on Network DVRs
By Mike Farrell -- Multichannel News, 3/30/2006 1:37:00 PM
New York -- Less than one week after Cablevision Systems Corp. announced plans to test a network-digital-video-recorder service, two executives from the two largest cable operators in the country hinted at an industry conference that they would follow suit if the product passes legal muster.
At the Banc of America Securities Media, Telecommunications & Entertainment conference here Thursday, Comcast Corp. chief operating officer Steve Burke applauded Cablevision for the network-DVR service.
“I think it’s a great idea, and I really applaud the things that [Cablevision COO] Tom [Rutledge] and Cablevision are doing, including network DVR,” Burke said at the conference. “Our lawyers have told us that they think Cablevision is on very firm [legal] footing.”
Cablevision announced Monday that it will test the network-DVR service -- which would be housed on Cablevision servers and would allow customers to record and play back shows -- in fewer than 1,000 homes on Long Island, N.Y., in the second quarter.
At the conference, Burke alluded that Comcast would consider a similar product if the legal issues are worked out, adding that it would be a true differentiator for cable versus satellite.
“If it happens, which I predict it will, it’s a tremendous competitive advantage versus satellite,” he said. “I’m sure the rest of the industry will follow.”
Time Warner Cable chief financial officer John Martin, speaking earlier at the conference, was a little more cautious.
Time Warner tested a similar service, called Mystro, several years ago, but it pulled the plug after failing to secure the necessary licensing agreements from programmers. But Martin said his company already has the capability to offer a network DVR.
“Our infrastructure does provide us with the capability to do this,” he added. “If over time, this proves legal, and if over time, this proves to be something that consumers want to do, we have the ability to bring that to them … So I’d say: Stay tuned on this one.”
Rutledge was obviously pleased that other operators like the network-DVR concept, but he added that offering it is simply a matter of common sense.
“Why wouldn’t you?” he said after the conference, regarding other operators rolling out their own network DVRs. He added that the service is an elegant solution that gives customers the functionality they want and operators the ability to provide it efficiently.
While there is still the specter of lawsuits from programmers that may object to the service, Rutledge said that may disappear when they realize that the service is simply another form of DVR.
“We didn’t set out to start a fight, and we’re not looking for one,” he added. “A lot of programmers say DVRs are good for business. They’re gaining viewership that didn’t occur otherwise.”
Separately, Martin said Time Warner is negotiating with programmers to extend the windows for its “Start Over” service, which allows users to watch a program already in progress from the beginning.
Asked if Time Warner was working with programmers to extend that window further -- perhaps to 24 hours, 48 hours or one week after the original broadcast -- Martin said, “Yes.”
“We are confident and expect that we are going to be able to continue to evolve our programming relationships to continue to gain incremental rights,” he added.
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