Are Gaming Consoles Gunning for Cable TV?
According to sources, former News Corp. President Peter Chernin was meeting with Microsoft Corporation earlier this week. Bloomberg reports that the talks involved creating an exclusive, X-Box only TV channel. Users would be able to watch content about the latest news and release info for Xbox games and equipment, as well as being able to view shows, like network TV reruns for a monthly fee. Along with the monthly programming, users could also choose to order other shows and movies for additional one time fees per each viewing.
All of the major gaming consoles (Xbox, PlayStation 3, and Wii), already offer users the ability to access online movie rentals from Netflix, for a monthly fee of $8.99. So what would it mean if gaming consoles started offering other programming, especially programming geared to the video game playing audience of young males? It could mean a huge shift in cable TV subscribers. If young adults can play video games and watch most of the shows they enjoy for a fee that would ultimately be much less than that of basic cable TV, they would definitely be willing to give up a few of the features that cable TV offers in return of the savings in money.
The biggest obstacle for gaming console TV viewing to overcome would be the availability of shows on the Internet. Sites like Hulu, youtube, and even network television usually re-air TV shows within 24 hours, so why would anyone want to pay $10-$20 per month for an Xbox Live subscription and the additional as of yet unknown fee for the Xbox-only channel?
Since this idea is only in its infancy, these are some of the many questions that gaming console companies are asking themselves. Cable TV companies like Comcast, have made huge strides by offering bundled services on products like digital cable, high-speed Internet, and digital phone services. The special deals customers often get from cable companies by packaging all services together are big advantages cable has over other providers. If there is money to be made in this endeavor, then someone will surely figure out how to do it.
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