Cable worried about poverty, not Netflix

CptSternn · 06-17-2011, 01:10 AM

http://www.reuters.com/article/2011/...75D6IA20110614

Quote:

(Reuters) - For all the talk about competitive threats from the likes of Netflix Inc or Apple Inc, it is rising poverty among households that TV executives say is their biggest source of concern.

Executives from News Corp, Comcast Corp and Time Warner Inc, speaking at the annual Cable Show industry event, made clear the industry needed a stronger housing market and better jobs picture to win new customers and keep existing ones.

"We have to be sensitive in making sure we have a product that consumers can afford," said Pat Esser, president of privately held Cox Communications, speaking at the industry's biggest yearly event.

Investors and analysts, with a few exceptions, can often be heard worrying more about how the cable industry will cope with cheaper entertainment packages from rivals such as Netflix, Amazon.com Inc or Google Inc.

Time Warner Cable Chief Executive Glenn Britt, however, was one of the executives focusing on the hazards of a bad economy.

"There clearly is a growing underclass of people who clearly can't afford it," he said. "It would serve us well to worry about that group."

Even with the economy on shaky footing, Viacom CEO Phillipe Dauman and Time Warner CEO Jeff Bewkes remained particularly bullish about cable's prospects.

Dauman said it was "remarkable" that cable was one of the last things that customers cut off during the recession and was a testament to the value that cable offered.

Bernstein Research analyst Craig Moffett, one of the analysts who has written extensively about the poverty issue, said the cable business was a "rigged game" that allowed programing fee hikes to be passed on by operators to consumers with impunity.

"That has been a wonderfully attractive model for a generation, but the danger, of course, is that eventually the video product will be priced into irrelevance for lower income consumers," said Moffett. "I don't know when it will happen, but I suspect we're already perilously close."

Still, questions about Netflix and other newcomers couldn't be escaped at this year's conference. Netflix has more than 20 million customers, making it the second largest video subscription service in the United States.

The majority of Netflix's online programing has been older TV and film library content. More recently it has also made a move into original programing by reaching a $100 million agreement with David Finch to produce a TV series.

"They got involved in one show but that's really not their fundamental business," said Dauman. "It's not that easy to get into the content business."

The other key issue facing the industry is for programmers and distributors to work closer together to make shows available on a variety of platforms, such as tablets computers or game consoles.

The cable industry been working on an initiative called TV Everywhere to make shows available online outside the home for no extra charge once the user has been verified as a paying subscriber -- a process known as authentication.

But TV Everywhere impact has not been as immediate as hoped by industry insiders.

"We've talked about authentication for two years and we're still talking," said News Corp Deputy Chairman Chase Carey.

"Our rights are our backbone. It can't just be the Wild West ... you have to do a structure within which you do business," he added.

CptSternn · 06-17-2011, 01:12 AM

It says something when large companies are now worried because the average American household can't afford something that is viewed pretty much as a standard commodity these days.

The real question is when will the tipping point occur and people start jettisoning their pay TV en masse?

Grausamkeit · 06-17-2011, 12:04 PM

Who needs cable if you have the internet?

Ben Lahnger · 06-17-2011, 01:29 PM

This reminds me of an Emo Philips joke:

I met a beautiful woman at the bar the other day, and I asked her if she would like to come back to my place with me. She asked me if I had cable. I said, "I'm sure the ropes will be strong enough."

Pa-rum-bum!

CptSternn · 06-18-2011, 12:14 AM

Quote:

Originally Posted by Grausamkeit

Who needs cable if you have the internet?

Thats the issue sure.

Most people like us here online know how to watch TV/films for free, along with tens of thousands of college students around America.

Even those numbers are being surpassed by the number of people disconnecting their cable television because of their economic situation.

Thats what should get everyone worried.

Ben Lahnger · 06-18-2011, 12:55 AM

Well, I've been out of work for a while, and I cut out my cable entirely. I have high-speed internet, and I pay for Netflix, which gives me a lot of things to watch for $8 a month, and then I've learned to live with over-the-air broadcast channels for my "live" TV. But then, I've always viewed cable TV as a luxury and not a necessity.

Grausamkeit · 06-18-2011, 11:10 AM

Quote:

Originally Posted by Ben Lahnger

Well, I've been out of work for a while, and I cut out my cable entirely. I have high-speed internet, and I pay for Netflix, which gives me a lot of things to watch for $8 a month, and then I've learned to live with over-the-air broadcast channels for my "live" TV. But then, I've always viewed cable TV as a luxury and not a necessity.

Same here. No one needs cable, it's entertainment. I also hate this ridiculous 'digital revolution' because if the damn wind blows the wrong way my husband is bitching about whatever show he's watching not getting reception.

Angelic Dissonance2 · 06-18-2011, 11:33 AM

Fuck some TV.

Grausamkeit · 06-18-2011, 11:34 AM

Quote:

Originally Posted by Angelic Dissonance2

Fuck some TV.

I wish I could throw out every damn TV in our house.

Solumina · 06-22-2011, 02:18 PM

We ditched cable because I don't like the only provider that our new place offers (well we could do satellite if we had a line of site but we don't), if we could have FiOS (who I always received exceptional customer service from, in addition to a very solid product) then I'd have no problems paying for it, but I'm not giving that kind of money to a company that makes even the simplest thing into a hassle and acts as though they are doing me a huge favor by providing me a service that I pay a premium for.

Saya · 06-22-2011, 02:26 PM

I got cable because my sister loves it, and split between roommates and bundled with internet its actually not expensive, but I'd rather Netflix any day. I've gone so long without it doesn't bother me that I'm not up to speed on Community.

MissCheyenne · 06-22-2011, 02:28 PM

I don't even have a tv. I used to have cable when I lived with my brother purely because he wanted it. I don't care much about tv and anything I do want to watch, I watch online. I couldn't have cable even if I wanted to because the area I live in hasn't been cable enabled yet.

Ben Lahnger · 06-22-2011, 03:41 PM

Quote:

Originally Posted by Saya

I got cable because my sister loves it, and split between roommates and bundled with internet its actually not expensive, but I'd rather Netflix any day. I've gone so long without it doesn't bother me that I'm not up to speed on Community.

I'm not sure if it's available in Canada, but Hulu Plus is the same $8 a month here that Netflix costs and lets you stay current on many TV shows (including, if I'm not mistaken, Community), plus it has a library of full runs of many shows from TV history. So that might be an option.

Saya · 06-22-2011, 03:45 PM

Nope, still only available in the states. We only got Netflix last fall!

Ben Lahnger · 06-22-2011, 04:17 PM

Yeah, I remembered that. Damn them and their location-sensing-internet-delivery-systems!

Angelic Dissonance2 · 06-23-2011, 12:53 PM

Do any of you know how terrible regular, non-cable prime time television really is...?

GOD, IT'S MIND NUMBING.

There are few candles through the fog... I will pay my dues to The Office, Raising Hope [ESPECIALLY--This is a good show.], Most of Seth McFarlane's stuff, and of course, King of The Hill.

And mind you, King of The Hill deserves special props. No one has character development quite like they do, and they are masters of set-up when it comes to jokes.

Grausamkeit · 06-23-2011, 01:07 PM

Quote:

Originally Posted by Angelic Dissonance2

Do any of you know how terrible regular, non-cable prime time television really is...?

GOD, IT'S MIND NUMBING.

There are few candles through the fog... I will pay my dues to The Office, Raising Hope [ESPECIALLY--This is a good show.], Most of Seth McFarlane's stuff, and of course, King of The Hill.

And mind you, King of The Hill deserves special props. No one has character development quite like they do, and they are masters of set-up when it comes to jokes.

I do like King of the Hill, Family Guy, The Simpsons and NCIS. I agree that most TV is boring and I actually prefer to have the television off when my husband is not home. It's his form of 'entertainment' when he's not at work. He deserves his entertainment since he works his ass off. I don't have to like it, though. I also like that new show Mike and Molly. I dislike the fact that some rude people were 'grossed out' by two overweight people kissing onscreen. BFD! It's a cute show and her dumb, stoner sister is funny.

We watched Game of Thrones, too. That was a great show. They portrayed the events in the first book faithfully.

The other shows I could give or take, GoT I wouldn't miss for the world.

Saya · 06-23-2011, 02:47 PM

I DO like Golden Girl marathons, I'll give cable that.

Murder.Of.Crows · 06-23-2011, 02:53 PM

Well when American Gods come out, it will give me a reason to want cable again. Until then i'm fine with hulu.

Saya · 06-23-2011, 02:56 PM

MoC, did you change your avatar before or after I did? I feel we match somehow.