Disney isn’t scared of cord-cutters or Netflix. Starz sees itself producing as much original programming as HBO and Showtime in the next few years. And AMC thinks they’re poised to come out on top as pay TV scrambles to cut costs.
At least that’s what their executives told the bankers and investors at Goldman Sachs’ annual Communacopia conference in New York City Tuesday. And they all had their own take on why the keepers of the checkbooks should think that their outfit——whether global elephant, critically acclaimed cable channel, or pay outlet with an evolving identity——was in the best position to benefit from the rapidly changing TV landscape.
Disney CEO Bob Iger told the crowd that the Mouse wasn’t scared of the much-hyped millennial cord-cutters, who don’t feel the need to pay for cable packages anymore. The threat just isn’t materializing.
“So far we don’t see evidence of this occurring,” Iger said. “The $75, 100-channel expanded basic package is a really good bargain… The consumer is getting a good deal”
And while Netflix may have “a running start” in the premium streaming video category, “it will be really hard for them to corner or monopolize the market place.
Iger also said that new broadband video service providers could provide the Mouse with an alternative to the traditional cable companies——as long as they were willing to accept licensing deals that resemble the ones that have been agreed with the cable companies.
Starz CEO Chris Albrecht told investors that the pay channel is aiming for 50 hours of original programming in 2014, and 75 hours after that—a number that would put it on par with competitors HBO and Showtime. Starz plans on spending more on originals, but wouldn’t give the room an exact figure.
“How soon we get there depends a lot on the state of our business and the way we deliver,” Albrecht said Tuesday.
He also sidestepped questions about recent media and investor speculation about whether Starz would be acquired by another company——or purchase one itself.
“Investment bankers have told us about their best ideas. There hasn’t been anything yet that seems to make sense to us.”
AMC Networks CEO Josh Sapan told the conference that his company—because of its small size—could come out the winner as pay TV outfits look for more ways to squeeze costs out of their operations.
“AMC Networks may have among the highest, if not the highest, value for penny [based]on what we put on the air,” Sapan said.
Sapan also argued that VOD has altered TV viewing habits to such a degree that small outfits like AMC that focus on nuanced storytelling now come out on top because viewers have the “energy, time and attention” to enjoy shows.
Time Warner Cable CFO Artie Minson spoke earlier Tuesday and said that disputes like the one that saw a CBS blackout in TWC homes this past August remained a “major issue” for the cable industry.
According to The Hollywood Reporter, Minson said that programming fee increases were not sustainable and “consumers are reacting to that” by leaving cable subscriptions.
Brief Take: In a TV landscape that’s rapidly evolving into on demand digital delivery, the industry’s top execs came to Goldman Sachs’ annual investors conference convinced that their horse is the one to bet on.
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