Cable Show 2009: Iger To Cable: Show Me The Online Model
Disney CEO Says "TV Everywhere" Subscription Model "Difficult to Embrace"
By Mike Farrell -- Multichannel News, 4/2/2009 12:09:34 PM
Washington — Complete Cable Show 2009 coverage from Multichannel News
Walt Disney Co. CEO Robert Iger told the cable industry in a roundabout way Thursday that it must find an online model that works sufficiently for both programmers and distributors, appearing to dismiss a subscription model proposal, TV Everywhere," made earlier this year by Time Warner chairman and CEO Jeff Bewkes.
In his keynote speech at Cable Show '09 open general session here Thursday, Iger praised the cable industry, but also warned that nitpicking on the issue of online video could be devastating for the industry.
"Let me state the obvious: Cable television is vitally important to our company," Iger said. "It provides us with a crucial connection with consumers. And it is a critical creative engine that drives value across a number of our businesses and across markets and territories around the world."
But he added that the prevalence of online video cannot be ignored.
The biggest bone of contention with operators has been programmers that allow content to be viewed on the Internet for free while still charging cable operators to pay for programming. While several potential models have been bandied about, some operators have warmed to Bewkes' proposal that cable operators charge a bit extra to allow their customers to access video on the Web. While that has its own problems, some have seen it as at least a step in the right direction.
But in his keynote speech, Iger seemed to set the tone for the online debate, and it doesn't appear to be the Bewkes model (which the Time Warner chief is expected to discuss further at an afternoon session here today).
"...preventing people from watching any shows online, unless they subscribe to some multi-channel service could be viewed as both anti-consumer, and anti-technology, and would be something we would find difficult to embrace," Iger said.
Disney, the first major programmer to make its content available on iTunes and the first to stream its content on the Internet, views online video in two ways, he said: as brand extension and as a way to expand its audience. At the same time, the media giant also wanted to challenge the status quo.
"Businesses not willing to challenge the status quo often find themselves marginalized or passed by when new competitors enter the market, or new business models emerge," Iger said. "At Disney, we must always challenge the status quo."
And online video watchers aren't necessarily the threat to cable they appear to be. According to Iger, people who stream video frequently are actually more apt to watch television, buy HDTV sets and subscribe to digital and premium services.
Iger said he was open to the Anywhere, Anytime, Any device concept of making content available over multiple devices, including the computer, but said that authentication was key to the strategy.
"With authentication in place, streaming full networks online would be an interesting and potentially compelling feature for consumers, and we are certainly open to exploring that possibility," Iger said.
-
I am afraid that the closed network hardwired MSO model is doomed, wherein super hi-speed wireless networks, being much cheaper to deploy & maintain than hard fiber, will win, offering anyone, on the cheap, to become a channel, station, network, or aggregator of same. And all in 1080p HD, and then, eventually, Ultra HD. Think towers, satellite, and even replacable hi-altitude airships/balloons, and such not tethered to the ground will be immune from natural or man-made disasters . . . THINK GOOGLE!
Shelly Jacobs - 4/3/2009 3:27:47 AM EDT -
I agree with Iger. Cable operators could pre-empt this by offerring us consumers more choice in our packages. By that I mean, give us a price option (say $39.99) and let us select the 50-60 channels we want to subscribe to for that. Then make additions available for $2.99 each (except for VOD) and swapouts cost nothing. My Satellitte subscription is completely cluttered with a multitude of channels I have no interest in.
If they don't do this, the internet is going to leave them in the dust by filling this void. I would move to it immediately if the HD quality was there right now. My current package is DishNetwork for $44.00 per month and NetFlix rental/instant streaming on XBox 360 for $8.99/month. Unless HBO/Showtime and the other movie channels adapt and allow me to buy premium programs ala carte, they are DOA as far as I am concerned. So I'm getting much closer to what I actually want.
JohnM - 4/2/2009 4:29:09 PM EDT -
In his insistence on authentication, Iger is pretty much throwing down the gauntlet to the industry to open up their networks to intelligent edge devices. But this will not happen: the engineering departments of the large MSOs are committed to maintaining their existing closed networks, and with them the monopoly of Moto and SA. Sure, business unit managers may covet the cool applications possible in an open world. But the people who run the engineering groups upon which they depend will fight to the death to keep the status quo.
We all have our war stories about that one!
Donald Frazier - 4/2/2009 4:21:01 PM EDT -
Iger's remarks are confusing. He's been charging for episode downloads for years. Somehow allowing people with paid subscriptions to download for free is "anti-competitive"? There's nothing to stop him from continuing to charge non-subscribers by the episode.
So, does he actually think he can possibly make money by giving away cable content to non-subscribers?
Ken - 4/2/2009 3:07:01 PM EDT
Iger: Show Me a Model
04/06/2009Cover Story: Members Only
04/05/2009
VIEW ALL GALLERIES
