Pay TV Distributors, Broadband and Programming Costs

One of the biggest fears among pay-television distributors is that as more content becomes available on new platforms, consumers will cut the cord to their cable and satellite suppliers. That's why the cable industry is pushing "TV Everywhere," which is basically an authentication service that would require consumers to prove that they are cable subscribers before being able to watch their favorite television shows online.

Comcast and Time Warner Cable, the nation's two biggest cable operators are the big drivers of TV Everywhere, but other distributors are also on board. Now the distributors are turning their attention to the iPad and other tablet devices. The distributors not only don't want consumers to cut the cord, they also want to make sure their programmers don't look to create their own platforms as well. After all, if Comcast is paying an FX or TBS good money to carry their channels, they don't get happy to see their shows available elsewhere. For now that's not really a risk. Programmers such as Time Warner's TNT and Discovery don't want to risk that revenue stream. But that doesn't mean programmers won't want more money from their distributors for letting them be the gatekeepers to the Internet, tablets and whatever other platforms and devices emerge in the years to come.