Time Warner Earns $250m in First 3 Qs in Streaming
-Says Demand from OTT Services ‘Stabilizes’ Industry
Time Warner CEO Jeff Bewkes had some rosy things to say about
OTT during the Q3 earnings call. Bewkes, the pioneer of TV
Everywhere, said subscription-based VoD (SVoD) services such
as Netflix, Amazon’s Lovefilm and Hulu are “stabilizing the
industry” by buying rights to stream content.
“The huge demand for original programming, it’s coming from
all of the existing networks and now the SVoD networks,”
Bewkes said. “It’s a tremendous kind of demand for us to
program to and sell to.”
Read the full transcript of the call here:
CFO John Martin said the company had earned $250 million from
SVoD services through streaming rights in the first three
quarters of this year, $100 million alone was realized in the
last quarter for streaming rights for the blockbuster “The
Dark Knight Rises.” Martin said that money came primarily from
deals with Netflix and Amazon.
Bewkes said he sees a lot of opportunity ahead in streaming
rights for Time Warner content. “We’re building basically a
recurring revenue stream, and we’re hoping to grow off of
that,” he said.
He said that the increase in VoD watching has an overall
positive effect on networks and broadcast ratings. He said
making content available on-demand is a good way to bolster
consumer loyalty and engagement with the shows, and he said he
believes it will increase viewership in the end, despite
concern about broadcast ratings.
“I think what you’ll see eventually, because VoD does this
whether it’s VoD on your television, through your cable or
telco operator, whether it’s VoD that you’re using for HBO Go
or TV Everywhere, it increases viewership,” he said.
“Our investments in content and technology over the last few
years are clearly paying off, and we expect they’ll keep
paying off in 2013 and beyond,” Bewkes said.
Bewkes highlighted the launch of two stand alone VoD services,
HBO Go and Max Go, which launched in Scandinavian countries
earlier this year.
As for launching a stand alone VoD service in the US, Bewkes
said such a model wasn’t “ready for prime time.” Bewkes said
the company is working on figuring out the best economic house
for original programming.