Here's a fair question: Are cable companies really so out of touch as to be blind to their imminent demise? Or are they, in recognition of their growing obsolescence, frantically making last-ditch efforts to save themselves before the inevitable shift to better -- and cheaper -- entertainment options?
A quick look at the US auto industry would indicate that such efforts are usually doomed to failure.
Hulu owes its success to its streamlined efficiency. Video feeds load fairly quickly, with optimal clarity, and the commercial breaks are briefer and less intrusive than they are on cable television. In fact, ads can command a higher price on Hulu than they do on the networks.
This may be food for thought for those cable companies unwilling to acknowledge the Hulu revolution.
When asked about Time Warner's future relationship with Hulu, Bewkes remarked, "There will be some part [of Time Warner's content] that will be out there [on Hulu]. Short-form content, I think, will continue to be available -- promotional content will continue to be available."
When networks shun breakthrough technology -- focusing on targeted TV ads, or blocking Netflix's (NFLX) streaming video -- they're only delaying their inevitable demise. Consumers are winning the battle for free online content -- and attempts to strong-arm them into buying subpar cable service simply won't work.
It's like fighting a tsunami with your bare hands.
I take this guys opinion with a grain of salt. Obviously he's not overly informed because networks aren't blocking Netflix. Netflix is free to acquire content if they want to pay to get an earlier window on it. He is right about cable not having a clue though.