TDG Opinions

Turner Networks' Cartoon Network and Adult Swim Quietly Launch TVE Authenticated Video Services
Bill Niemeyer, Senior Analyst

September 9, 2011

In early August, Turner Networks quietly launched authenticated TV Everywhere-style video services on the website for Adult Swim (Cartoon Network's late night block of programming aimed at 18-34s). The service is called Adult Swim Gold. It was indeed a quiet launch, with no press releases and no trade press (at least that I can find). I'm pegging the launch date as August 2nd based on posts from a fan site and in the Adult Swim fan forums. This is I believe the first launch of authenticated on-demand programming by an advertising supported TV network where the playout occurs on the network's own website, as opposed to the site of a MVPD such as Comcast's Xfinity.com. (Fox Networks launch of a similar model occurred August 15.) Cartoon Network also has launched an authenticated full-episode viewer, but despite some serious Googling I can't establish when it launched.

So what’s going on with all these launches?

Many TV networks have pushed MVPDs for the promised TVE capacity to show full episodes online via their own sites and apps to authenticated viewers, versus viewing on the operator's own video portal. But in the main, so far it hasn't happened. The HBO Go site/apps are an exception, as is the mid-July launch of authenticated live streaming of CNN and HLN via CNN.com. Another exception is authenticated viewing on Epixhd.com (the site of Epix - the premium channel JV of Viacom's Paramount, MGM and Lionsgate).

Networks want to be able to authenticate MVPD subscribers for full episode viewing on their own properties because it allows them to do what they do well—act as programmers and marketers for entertainment experiences, as well as allowing them to use web techniques like registration and social media to build relationships with viewers. For an illustration take a look at the respective web pages for the "Adult Swim Gold" authenticated service and the Xfinity.com page for Adult Swim content. The Adult Swim site reflects the network's unique brand identity and supports cross marketing into other shows and features on the site (games, forums). The Xfinity page is an alphabetical listing that feels like a spreadsheet with thumbnails.

The Adult Swim and Cartoon Network authentication is available to subscribers of AT&T, Comcast, Cox, DISH, DIRECTV, Suddenlink, and Verizon, representing about 70% of U.S. multichannel households. The launch of the authenticated services was accompanied, unsurprisingly, by a reduction in the quantity and timeliness of the content available online without authentication. A note on ad models: yes, there are ads with the authenticated videos.

I did take a tour of other major cable network websites to see if I could find authenticated players, but other than those previously mentioned, I could not. Turner's TBS and TNT did not have one; same for the sites of key networks of MTV Networks, A&E, Discovery, Disney, Fox Cable, and NBCU. So it would appear that Cartoon Network and Adult Swim are the (quiet) test markets for cable networks and MVPDs to explore the technologies and business relationships of TV Everywhere authentication.

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