Friday, January 7, 2011

Time Warner Likes TV Everywhere

Lots of speeches coming out of CES this week. And the buzz continues for smartphones and tablets. But the underlying need is content. Content is King and access to from an economic model that works for the consumer is necessary. So it is Jeff Bewkes, CEO of Time Warner that sees access of cable content across platforms the key to stopping cord cutting and improving the bottom line. "More screens mean more opportunities for viewers to watch Time Warner's shows or read Time Inc. magazines. Consuming more content means more ad and subscription revenue for Time Warner." I like the reasoning.

The reason consumers liked cable was that for one low price they could access many channels of content. The reason consumers like websites that aggregate information is that it simplifies the search process and provides what they need quickly. Consumers seek easy search and access as well as expertise in what to find, watch, and read. That cable can deliver video content easily as part of its subscription is nice. But the consumer wants to be untethered and if their video content can leave the home, via TV Everywhere, to where they happen to be, that is a major benefit. "He (Bewkes) sees the secret in stemming cord-cutting in giving consumers infinite access to what they're paying for. The theory: If you can access your HBO shows anywhere, anytime, it's worth more than ever — but you're not paying more — so why give that up?"

It is the new want that the consumer is demanding - what they want, where they want, when they want, to any device they want. Embracing a TV Everywhere approach assures retention as well as subscription growth. Owning those eyeballs than allows for more ad revenue too. Viewership rises and ultimately so do revenues.