This happened with Redbox a few years back and now may be taking place with Netflix as well: content creators decide that the hot new channel is eating into their profit and attempt to turn back time. Time Warner CEO Jeff Bewkes, who was long an opponent to Redbox’s model, has made statements that his studio may attempt to lengthen the window for selling content to SVOD providers like Netflix.
Time Warner has experienced greater-than-expected advertising and subscriber quarterly declines, and Bewkes is holding Netflix and its ilk accountable for at least some of that cord-cutting.
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Said Bewkes:
“We are evaluating whether to retain our rights for a longer period of time, and forgo or delay certain content licensing,” Bewkes said. “This would effectively push the SVOD window for content on our networks to a multiyear period, more consistent with traditional syndication. . . It’s pretty clear [SVOD] offers less monetization support in general for the quality and diversity of programming that we’ve all gotten used to seeing on the dial,”
Wedbush Securities analyst Michael Pachter seems almost surprised that it’s taken so long for studios to wise up to the new landscape. Said Pachter:
“We’ve seen the studios screw around DVD rental with 28-day and failed 56-day windows,” Pachter said. “It was inevitable that someone would behave rationally and figure out that giving Netflix TV content only a few months after the broadcast season concluded would cause many [pay-TV subscribers] to cut the cord. I think Bewkes and [Warner Bros. CEO Kevin] Tsujihara are of a like mind that Netflix is the biggest threat to their existing ecosystem. And offering them SVOD rights proximate to cable exhibition jeopardizes retransmission and broadcast rights fees if it induces subscribers to cut the cord.”
Of course, the true irony in all of this is that Bewkes himself dismissed the idea that cord-cutting was any sort of threat just last year. Is this CEO getting more curmudgeonly as the years go by? Will he truly try to turn back the clock and cling to old models once again?
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[via Home Media Magazine]
The Cable Co’s need to wake up. And get with it..
1. They need to give you only the channels you want.
2. And charge you just for them.
And yes they can do it. And they can do it now.
But they don’t want to. Touch greed.
I just use Netflix, Hulu + And Warner Archives. With my over the air deal.
Get 69 Channels for free.
And really 95% of the stuff on TV now it total trash. And 95% of the new Movies are trash are some remake of a remake. They can put a hold on them for a year for all I care. Not missing anything.
I finally found some working redbox codes here:
http://movierentalcodes.com/redbox
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Thanks Mya! It sure is.