The PlayOn interface on the Nintendo Wii.

Seattle-based MediaMall Technologies is taking a new approach -- and taking on the cable television industry -- with a new initiative that touts the savings achieved by people who have reduced or eliminated their cable bills by using its PlayOn technology. MediaMall had previously positioned PlayOn almost exclusively as a complement to cable TV, rather than a replacement.

PlayOn lets people watch TV shows and movies from Hulu, YouTube, Netflix and other Internet services on their television sets, by streaming the content from their Windows PCs to devices including the Wii, Xbox 360 and PlayStation 3 game consoles. The software sells for a $39.99 flat fee, and unlike cable TV, it doesn't require monthly fees to use.

In many cases, people are still treating the PlayOn service as a cable supplement. Most of its customers have maintained their cable service. But the company on Tuesday will release the results of a survey finding that 38 percent of its customers eliminated their cable or satellite service after they started using PlayOn, saving $1,400 per year on average, according to the survey.

The company says the survey polled a statistically significant number of customers. The company was surprised by the outcome, said MediaMall CEO Jeff Lawrence. MediaMall has reconsidered its marketing message as a result.

"We want people to know that there is a viable option to cable and satellite," Lawrence said. He noted that the company still would like to partner with cable companies and other television providers interested in offering Internet video directly on TV sets.

The situation underscores the threat that Internet video poses to traditional television. MediaMall is one of a growing number companies aiming to bring Internet video to television sets. The company doesn't disclose its number of paying customers, but the company says there will be more than 1 million downloads of the software, which is available for use initially as a free 14-day trial.

The privately held company is profitable, Lawrence said, but it doesn't disclose comprehensive financial results or employment numbers. MediaMall will be showing PlayOn at the Consumer Electronics Show in Las Vegas this week.