Turning the Internet Into Cable

Fascinating article in WSJ about Disney charging Internet-service providers for the right to offer its broadband Web site, ESPN360. The site offers full-length live sports and interviews, highlight clips and videogames -- more than ESPN offers on its ad-supported site, ESPN.com.

ESPN's charge-the-provider model has its roots in the cable-television world, where cable channels charge cable or satellite operators for the right to carry their programming. But it is a revolutionary approach for the Internet, where commercial Web sites are generally available to any consumers -- sometimes free, sometimes not -- regardless of which Internet service they use. So far, however, ESPN has yet to show the model can work on the Internet. Only a few big Internet providers -- such as Verizon Communications Inc. and Charter Communications Inc. -- have signed up to offer ESPN360. The biggest Internet providers, such as cable operators Comcast Corp., Cox Communications Inc. and Time Warner Inc., are refusing. "We do not like the current business model that ESPN is using for ESPN360," said Scott Hightower, vice president of data product development and support at Cox Communications. He said the ESPN360 model would force Cox to saddle its customers with unnecessary costs, because they will inadvertently be paying for a service they may not want when they sign up for broadband."

For those familiar with the cable business, and with the fight over Net Neutrality, here's another example of trying to turn the Internet into "cable," but with more "channels."  Link: WSJ.com - ESPN Charges Net Providers For Right to Offer Broadband Web Site.