Silicon Valley’s Bid for $100 Billion Slowed by Hollywood
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Armed with billions in cash and promising advanced features, Intel, Google, Apple and Sony are gunning to take on cable, phone and satellite companies by offering pay TV via the web.
The tech giants plan to use existing cable, fiber and wireless networks, just as Netflix does, to offer web-based TV in living rooms and on tablets and smartphones. In just the latest sign of change in TV viewing, Google last week introduced Chromecast, a $35 device that lets mobile-phone and tablet owners watch YouTube and Netflix on their TV sets.
First the companies need content. And broadcast and cable networks are determined not to make the same mistake of the hollowed-out music industry, done in by the economics of digital distribution. At stake is the $100 billion a year in fees the networks share with cable, phone and satellite providers, which charge viewers about $80 a month for programming bundles.
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