I work in the cable industry and spend a fair amount of time with Comcast. I do know a a bit about their On Demand network.Which, on preview, fits with Chocolate Pickle's remarks.
When you decide to watch a movie, your set top box (must be digital) sends a message to a video server located somewhere in your city. The server sets up a session with you set top box. A single digital TV stream (about 3.5 MB/s) is reserved for your use. Generally 10 or 11 of these streams fill a 6 MHz TV channel. This makes the On Demand system is a major user of network bandwidth. To allow any significant number of On Demand users, the network must be segmented -- different streams are sent to different geographical locations within the network at the same RF frequencies.
There are many more details. But this is a high-level overview of how the system works.
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First, when your cable provider needs to provide the same exact stream to a few thousand customers, it can share the wires much more effectively than when it provides a free-flowing network stream to those customers. If a hundred customers are all watching the same TV show at the same time, they're all pulling down the signal for that one channel. If a hundred customers are all watching YouTube or Hulu slightly out of sync, that's a hundred different signals that need to go down some set of wires simultaneously.
Second, the cable company has no business reason to give a third party the ability to deliver to you what you want to watch when you want to watch it. They have lots of business dollar reasons to deliver contracted shows with commercials intact when and where the programmers decide, so solving the "why does my Hulu show stutter" isn't in their best short-term interest.
posted by straw at 2:05 PM on June 25, 2012 [1 favorite]