TV Execs Agree On Urgent Need For Online Model [Multichannel News]
Multichannel News and Broadcasting and Cable sponsored a panel discussion among television executives yesterday in Los Angeles. The panel's subject: the next steps for online distribution for television programming, and articipating in the panel were Marc Graboff, chairman of NBC Entertainment and Universal Media Studios, Bruce Rosenblum, president of Warner Bros. Television Group, Nancy Tellem, president of CBS Network Television Entertainment Group, and John Wells, president of the Writers Guild of America.
According to Multichannel, the panel members discussed the proposition of putting television content online with a business model that adequately compensates content creators while avoiding the potential to undercut the substantial revenue source that cable distribution provides for the content creators. It appears that panel members were in general agreement that the issue is a difficult needle to threat.
Authenticated online content - with cable operators providing their cable and broadband customers access to television content online - was mentioned as a "potentially successful" model for online distribution. Comcast and Time Warner Cable are both currently testing authentication systems, and Comcast is set to debut their On-Demand Online system for their customers in early December. It's clear that these panel members, as well as the rest of the television content industry, are focused on how Comcast's product is received by customers and whether it can generate an additional revenue stream for online content.
This is a real-life discussion, indirectly highlighting the squeeze local broadcasters are facing. Cable, wireless and online viewing make them less and less relevant in the future of television. With most of their viewership coming to them tuned into network programming, it's liable to get pretty interesting to see how much the big media companies that own the networks try to extract from local broadcasters' pockets. Already, a fight is brewing over the fees broadcasters are charging cable and satellite companies with Fox saying they want a cut.
Unfortunately, adding insult to injury, the advertising model is in a complete funk. All said, consumers will probably be forced to pay more to broadcasters and networks in the coming years.
So, when you hear about cable and satellite companies fighting against "retransmission consent" fees, keep in mind it's about them trying to save consumers money.
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