While the cable companies offer telephone and broadband, TV subscriptions still account for about 60 percent of their revenue. About a third of those fees get funneled to cable networks like Disney and Discovery, where they account for at least half of their revenue. Another chunk of subscription revenue goes to movie studios, which make more than $1 billion a year charging premium channels like HBO for the right to air their films. Even broadcast networks like ABC and NBC, which don’t make any money from cable bills, would still prefer that the content they make available online not be viewed on a TV set, because they can’t sell as many ads for their Web versions. Fox crams 18 commercials into every Sunday night airing of The Simpsons, earning 54 cents per viewer.
