Outlook for the Television Industry and Digital Media

by Alex Nesbitt

This panel at the Future of Television featured:

Brett Bouttier, SVP, Digital, Warner Bros. Television Group
Marc DeBevoise, SVP, Business Development & Strategy, Starz Media LLC
Matthew Glotzer, SVP, Digital Media, Fox Entertainment Group
Joe Patrick, EVP, North American Television Distribution, MGM
Moderator: Andrew Wallenstein, Deputy Editor, The Hollywood Reporter

Anything surprising about adoption of content on these new digital channels?

Response to ad supported streaming of premium content has been wildly successful. However, the ad supported model cannot keep up economically with sell through or even rental. So the challenge becomes how to do both and not cannibalize the sell through business where someone will pay you $1.99 for a download.

Long tail content has proven to be surprisingly successful. For example, Airwolf has turned out to be one of the most downloaded programs on Hulu.

How can film play a role on Hulu?

Joe Patrick said “I can’t get someone to pay the long tail content, but they might watch it on Hulu when its ad supported.” They might not pay $2.99 for this kind of content, but they might watch it for free. They are working on how to get sampling increased to help drive consumption.

What about Vongo?

Vongo licensed content from Starz. It just goes to show that consumers will use subscription models for premium content. Perhaps the key is to make it feel like free, or close to it. Subscription starts to approach this as demonstrated by cable subscriptions and Vongo.

What about iTunes – how important is it?

Starz will be releasing on iTunes tonight according to Marc DeBevoise, SVP, Business Development & Strategy, Starz Media. NewTeeVee did a video interview with him.

iTunes is clearly the leader in sell through. In this segment, they are the 850 pound gorilla in this segment. In other segments, there is still more competition and variety of players.

itunes has been very successful. All of us are in the business of trying to get distribution. iTunes will be one of these key channels, but there are lots of other channels like the Xbox that will be important. We want the content to be available everywhere at the right times.

Is digital content seen as a threat to mainstream broadcasting?
So far, the evidence has been the opposite. By streaming content shortly after on air play, it can actually help increase audience.

What about FCC regulations – do you see them applying to the internet?
We need to be responsible and self-regulate to some degree. More importantly, the sponsors will require certain levels of content standards so that will likely drive content strategies to a large degree.


Are these alternative channels a threat to contracts with talent?

The sense was that it is potential threat, but the ability for talent to move from one studio to another has always been there when contracts expire. The key will be to leverage core capabilities of distribution, marketing etc and let the creative do what they do best.

[tags]Future of Television[/tags]

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3 Responses to “Outlook for the Television Industry and Digital Media”

  1. SludgeHeap Says:

    The open-access nature of Hulu has me watching all the time, usually while working on something else on the computer. What really suprises me is that I find myself watching shows for which I already own the DVD set. It’s just easier and allows me to queue something up in the moment. So in a way the studio is getting double-revenue from me.
    For example, you mention Airwolf being one of the most downloaded shows. I have watched a few myself, and yes, I have the boxed sets. I actually watch through http://www.airwolf.tv (directly http://series.airwolf.tv/episodes ) because of the value-added content, but it’s Hulu and it’s wonderful.
    In contrast, as an iTunes user I have synced with an ipod for quite some time, but allowed myself to dabble only slightly in the pay-for-download arena. My question was simple: Why should I pay as much or more to download the show when I can just buy the boxed set and have something tangible? It is much the same question between buying a music track and the whole CD from a storefront, and perhaps that market can be used as a predictor.
    In the end, Hulu’s client-free access is the most convenient option.

  2. SurgeFilter Says:

    I agree with SludgeHeap above; just love this whole 1980s retro scene at the moment. Hulu certainly comes along at the right time and helps me re-live those years. My favorite is the aforementioned ‘Airwolf’ (funny I also found it on the http://www.airwolf.tv site too initially), the 80s action adventure show with Jan-Michael Vincent and veteran Ernest Borgnine in the lead roles. Absolute love it! I’m probably going to buy the Airwolf season Box Sets due to watching it again on Hulu, so if that’s a perfect example of The Long Tail then there you go…
    As well as that I’m also enjoying the awesome new, digitally remastered Airwolf soundtrack that they’ve just released (more Long Tail content) called ‘Airwolf Themes’ which you can download off Apple iTunes Store, or from their official website where there are great teaser samples, http://www.airwolfthemes.com/
    The Airwolf Themes soundtrack is probably a superb example of what will be high quality and lower unit sales compared to the commercial set-ups trying to achieve the same (in their dreams in my opinion). The boutique music labels that release fantastic, fan-craved content like this are the future, so the Big Four better wake up and protect their nipped heels with steel boots, or just run faster.

  3. The Songnumbers Team Says:

    Thanks for pushing out more ad-supported music information to the World!
    Sincerely,
    The Songnumbers Team
    (PS, we just launched BETA 2 of our site!)

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