Okay, Time Warner: We get it. You think 99-cent rentals via iTunes are a bad idea, so you sat out the introduction of the new Apple TV. But if you think the studio will be changing their tune anytime soon, you may have a long wait ahead of you.
According to The Hollywood Reporter, Time Warner chief Jeff Bewkes told the British media this week that “low-cost digital giveaways” are threatening a “second golden age of creativity” in the television business. The executive spoke at the Royal Television Conference in London, where he had some cautionary words about dealing with companies like Apple and Amazon, who Bewkes views as unselling the value of their content.
"How can you justify renting your first-run TV shows individually for 99 cents an episode and thereby jeopardize the sale of the same shows as a series to branded networks that pay hundreds of millions of dollars and make those shows available to loyal viewers for free?" Bewkes said.
"These new entrants must meet a few criteria: They must provide consumers with a superior TV experience, and they must either support or improve the overall economics that funds and creates the programming in the first place."
We’re not sure if Bewkes is living in an alternative universe or what, because the TW boss claims that overall the number of television viewers is growing, with paid television and subscription revenues increasing -- this at a time when many disgruntled cable and satellite subscribers finally deciding to cut the cord and take advantage of streaming services such as Netflix or Hulu Plus.
Apparently others agree with Bewkes -- one commenter on The Hollywood Reporter website known as "@3screenplanet" claims that “a 99-cent price point completely devalues premium content and guts the syndication cash cow that makes great shows possible. Just because you own Apple’s stock, don’t kill your business model to help Steve Jobs’ bottom line.”
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ScottB
September 29, 2010 at 9:34am
Between Time Warner chief Jeff Bewkes and former NBCU chief Jeff Zucker, you would think there is something to watch on television. You would think that if there is a way to generate revenues by pushing the content to the people who want to see it and pay for it that they should be lining up at the door to make this money.
But what these overblown stuffed shirts won't say is that they are trying to protect their cable assets. They would rather be pushing content that you are paying for down those cables and not just bits. Pushing bits is does not make them money, but the $100+ cable bills do make them money.
As more sports are being made available online, it is a matter of time before I tell cable where to go!
