Comcast announced a new Internet service plan called "Internet Plus" which bundles Internet service, HBO GO, local TV, and Comcast's Streampix online movie and TV service. This service is available right now in select markets and costs only $40 per month for the first year, then $70 per month after that. This is relatively cheap compared with traditional cable TV and internet packages.
It will be interesting to see how this impacts advertising business for traditional media outlets, which has already started to decrease as digital marketing becomes more prevalent. It also seems that this will only increase the number of people who have "cut the cord", i.e. discontinued their traditional cable TV subscriptions in favor of online entertainment subscriptions like NetFlix and Hulu. Previously, online access to premium channels such as HBO were available only to those who also paid for the channel via the traditional cable service.
Comcast's new service plan sets a precedent for premium TV networks (which are the only reason many people still pay for cable TV service) to be accessed without also paying for the cable service. I wonder if we will see a larger drop in cable TV subscriptions in the future as more networks make their content available online without a traditional cable subscription. What does this mean for TV marketing as a whole? Will it become an increasingly less attractive medium for marketers? Is this the beginning of the end? Also, how will this impact services like NetFlix and Hulu?
Source: http://www.dslreports.com/shownews/Source-Comcast-Launching-HBO-Broadband-Bundle-Aimed-at-Netflix-126362
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