2.) There is a steady impact from disruptive technology on the companies from this case. The cable companies themselves are embracing the internet as another delivery system for its content. Hulu is still unprofitable even after it generated over $100 million in advertising revenue. Hulu is under pressure to earn even more advertising dollars and to set up a subscription service.
3.) The cable programming and delivery companies are striking back. The internet has provided new ways for television studios to distribute and sell their content. Television broadcast networks have put television shows on their websites. In July 2009, Comcast Corp. began a trial program to bring some network shows to the web. Cable networks are hoping that by making more television shows available online for subscribers, they will preserve and possible expand the cable TV subscription model.
4.) The cable company has to remain profitable and retain their subscribers. The internet is another tool for them to keep their customers happy. Also, cable programmers stand to earn more advertising revenue from their online content. This is because viewers cant skip ads on TV programs streamed from the web. Technology is always evolving so the cable industry just has to keep up and evolve with it.
5.) I do believe the cable companies have found a successful new business model not so much to compete with the internet but to use it as a resource. The internet is a wonderful tool and pretty much everyone utilizes it. The cable industry would be foolish not to utilize it too; and they are. People who subscribe to cable can also watch their shows on the web for free. They can watch them from their computers, their phones, and tablets. This means that wherever a customer goes, they can access their subscription. They view the advertisements. All the while the money is just racking up for these cable companies.
6.) I have noticed that in order to really attain what you are looking for, you will need a subscription to some type of carrier; whether the subscription is to the cable company, Netflix, or wherever. All the sites want you to sign up. I do not currently have a cable subscription but I do access movies online through Netflix. I also have a huge selection of DVDs at my house. I do not have much time for TV so for me it would be a waste of money to have a cable subscription. Netflix is $7.99 a month and I can watch movies instantly either from my WII or my laptop. It is very convenient and all that I need.