According to the YouTube Blog, the popular video site has officially launched its beta version of YouTube Live — the possible next step in turning YouTube into a competitive TV streaming site. YouTube has live streamed concerts, sporting events and interviews in the past, but YouTube Live has the potential to be something much more significant that could grab the attention of broadcasters, advertisers and social media experts.

The blog announcement explains: “With over 2 billion views a day, it’s easy to think about YouTube as a place to watch videos recorded in the past. But you’ve told us you want more — and that includes events taking place right now…”

Although the announcement does not include the special celebrity channels touted in the press of late or any mainstream content yet, it does describe some basic information such as a browse page of live and upcoming events, interaction with users’ customized pages for channel subscription alerts, and YouTube’s plans for a “gradual rollout” of the live streaming beta platform.

The potential success of YouTube partners streaming live from their own channels may largely depend on the amount and type of content, as well as the social interaction between users and fellow streamers. However, it is clear that with the YouTube Live platform in place, Google is setting the stage for bigger ticket items, such as “broadcasting” professional content and global news and events.

Related Digital Trends article: “YouTube Live debuts as its overhaul continues” (4/8/11)

Related Wall Street Journal article: “YouTube Recasts for New Viewers” (4/7/11)

We recently reported that Time Warner Cable had drawn significant controversy over its free live-streaming app that provides subscribers access to streaming television content via their iPad (only in their homes). AP reports that Time Warner Cable has bowed to the subsequent pressure from Fox Cable Networks, Viacom and Discovery — and will drop 12 cable channels from the app (20 channels will remain and Time Warner Cable suggests it has plans to add more). The three programmers had complained that the app violated their programming contracts.

“For the time being, we have decided to focus our iPad efforts on those enlightened programmers who understand the benefit and importance of allowing our subscribers — and their viewers — to watch their programming on any screen in their homes,” explained Time Warner Cable in a statement.

Since the AP story hit the wires, Time Warner Cable and Viacom announced they are countersuing each other in U.S. District Court. This case may be an important indicator regarding the growing debate over content and licensing rights amidst an era of mobile devices.

Related Los Angeles Times article: “Time Warner Cable and Viacom sue over iPad app” (4/8/11)

Related Forbes article: “Viacom Yanks Channels From iPad App, Raises Stakes In Streaming Standoff” (4/8/11)

Related Broadcasting & Cable article: “TWC Clicks iPad App Channel Count up to 73” (4/25/11)

Netflix has taken another big step forward in offering premium content, following its announcement that it will have exclusive rights to stream 26 episodes of the original series “House of Cards” starting in late 2012. The Internet streaming service outbid cable channels such as HBO and AMC. “House of Cards” is a political drama based on the 1990 BBC miniseries of the same name. The new production will star Kevin Spacey; David Fincher is tapped to direct.

The deal is a big move for Netflix, which traditionally only airs previously produced and aired content. For the first time the company is licensing content before it is successfully produced. “Typically, we license TV shows the season after they run on a broadcast network or cable channel, and occasionally we have episodes from a current season, as is the case with ‘Saturday Night Live’ from NBC, ‘Spartacus’ from Starzplay and ‘Wizards of Waverly Place’ from Disney Channel,” Chief Content Officer Ted Sarandos wrote on the Netflix blog. “In all of these cases, the shows are produced before we bring them to Netflix. ‘House of Cards’ represents a slightly more risky approach.”

According to Ars Technica, Netflix currently delivers 61 percent of all digital video content to U.S. viewers. However, it should be noted that Amazon has tossed its hat into the ring with an instant video service that undercuts the Netflix streaming subscription by approximately $16 per year.

Related Wall Street Journal article (subscription required): “Web Shows Get Ambitious — Tech, Media Companies Race to Create Video Hits that Look, Feel More Like TV” (3/21/11)

Related Business Insider article: “Exclusive Interview with Netflix CEO Reed Hastings — Netflix’s Market Opportunity Is a Lot Bigger Than You Think” (4/4/11)

Related Ars Technica article: “Amazon Takes on Netflix with move streaming service for Prime” (3/11)

Apple is considering adding streaming video to its AirPlay service, which currently allows users to stream audio from an iPhone, iPad or iTunes to a home stereo or other devices. According to Bloomberg, two people familiar with the matter (who asked to remain anonymous) suggested the new feature would enable streaming video from an iPhone or iPad to television sets — and that Apple would license its software to CE manufacturers who could potentially use AirPlay in their devices for streaming movies, television and other video content.

Expanding AirPlay functionality could possibly spark more use of Apple devices and services in the home, despite the company’s limited success selling the $99 Apple TV set-top box thus far. Bloomberg reports that, “For Apple, AirPlay is a way to expand into the living room without having to introduce new products.”

While Apple and others such as Google are looking to explore the possibilities of streaming video and Web-connected televisions, a challenge for streaming content from a mobile device involves bandwidth issues and whether signals can be carried without interruption. Regardless of any technical obstacles, there is clearly a shift in how consumers are accessing TV shows and movies, with an increasing number of people accessing instant streaming services from the likes of Netflix and Hulu. Apple’s Steve Jobs — banking on a complete shift from physical media toward content distribution in digital form — has gone so far as barring Blu-ray players from Mac computers.

Time Warner Cable recently released a new iPad app that provides subscribers access to live-streaming television content via their iPad (Cablevision is expected to release a similar app shortly). And not surprisingly, the TV networks have expressed concern. Channel owners including Viacom and Scripps see the streaming capability as a contract violation, and reports indicate that cease and desist orders are underway.

To stream programs from Time Warner, customers download the iPad app, log in to their account, and choose from a selection of channels. The current version of the app only works inside the home for customers who receive both TV and Internet from the operator. The problem with this approach is that the networks view iPad streaming as a separate service from cable television, one that may require a different fee.

While Verizon and Comcast are also working on streaming apps for iPads, clearly the business model has yet to be ironed out. And we still don’t know if consumers will be watching TV through an app from their cable company, an individual channel’s app, or through a service such as Netflix.

Related New York Times story: “Dispute Over Time Warner Cable’s Streaming to iPad Bursts into the Open” (3/28/11)

Related Engadget story: “TWCable TV app for iPad now available, but Dish has something to say about being ‘first with live streaming'” (3/15/11)

As alternatives to traditional cable TV services continue to be introduced, the discourse grows regarding whether or not consumers are ready to “cut the cord.” Recent data from ESPN and research firm SNL Kagan suggests that any cable subscriber losses are being offset by gains elsewhere. However, as a percentage, fewer households are subscribing to cable than in the previous year. And financial services firm Stifel Nicolaus recently reported that pay TV might not be making a comeback over the longer term. The research report indicates year-over-year subscriber growth was at a mere 0.3 percent during 2010 — “the lowest year-over-year growth on record.”

According to Stifel Nicolaus analyst Christopher King: “Cable operators have been quick to point to housing and the anniversary of the nationwide digital transition in 2009 as reasons for recent subscriber declines; however, our analysis suggests that growth in the pay TV market has underperformed household formation in recent quarters and the impact of the 2009 digital transition should no longer be an issue.”

The pay TV market is over-saturated (at more than 84 percent of households), and while many continue to blame the state of the economy and the saturation on the declining numbers, it is interesting to note that Netflix added 6.4 million subscribers during 2010. As the cost of pay TV subscriptions continue to rise, consumers are beginning to “further re-evaluate the value they place on traditional pay TV services which bodes well for the likes of Netflix, Amazon and Apple TV among others,” King wrote in the report.

Editor’s Note: For those interested, the GigaOM post “Cord Cutting Threat Ain’t Over Yet” features some very interesting charts including Pay TV Subscriber Growth 3Q09-4Q10, Pay TV Penetration 4Q06-4Q10, and Netflix Subscriber Growth 2010 (as compared to Pay TV).

Billed as “the world’s first camera-top wireless HD video encoder,” the Cube from Irvine, CA-based Teradek streams up to 1080p over Wi-Fi, Verizon 4G, and wired Ethernet.

The battery-powered H264 encoder sends video directly from a camera to a decoding device such as a laptop or iPad. The Cube is available in HD-SDI and HDMI models running in the $1500-2000 range, and is designed for those in the business of live streaming — or those looking for production solutions such as on-set video monitoring or eliminating the need for camera tethering.

To operate, the Cube slides into the camera’s hot shoe and goes live with a single button via Livestream.com. Gizmodo reports the process is “unhampered by firewalls, blocked ports, and other network roadblocks.”

Early adopters earn a month of Livestream.com premium membership (about a $350 value) with a Cube purchase.

Internet TV pioneer Hulu is reportedly in discussions to transform its business model. Since its 2008 launch, Hulu has been one of the leaders in free online television delivery and web-video ad dollars.

The Wall Street Journal reports that Hulu’s three owners (NBC Universal, News Corp. and Disney) are concerned that free Web versions of their TV shows are cutting into their traditional business, and the three are at odds regarding how much of their content should be offered for free.

News Corp.’s Fox Broadcasting and Disney’s ABC are considering pulling some of their free content from Hulu (and selling more content to Hulu competitors), while Hulu management is discussing the idea of retooling Hulu as an online cable operator that would use the Web to provide live TV channels and video-on-demand content to customers. If they opt to move forward with such a plan, some form of Hulu’s free service would likely remain and it is possible Hulu Plus could be folded into the new service.