Bob Iger: Netflix Hasn’t Cornered The Market For Premium Streaming Video
With low barriers to entry on the Internet, rivals to Netflix “are going to use technology to offer varied product” making the competition for viewers “more of a marathon than a sprint,” Disney CEO Bob Iger told investors this morning at the Goldman Sachs Communacopia Conference. “It will be very hard for them to monopolize the marketplace.” That’s probably what you’d expect to hear from a company that’s also a major investor in Hulu, a Netflix rival. But his upbeat views of a highly competitive Internet world stood in stark contrast to his equally optimistic description of the benefits of maintaining a traditional pay TV business where consumers have little choice. “The $75 [a month], 100-channel expanded basic package is a really good bargain,” Iger says. “The consumer is getting a good deal.” He also sees no problem as companies including Disney ratchet up their programming fees. Could price inflation lead to cord cutting, or young people choosing not to subscribe at all? “We don’t see evidence of that occurring.” And consumers may see no impact because pay TV distributors “may have to accept lower margins on their video business.” That could make sense because video is “very important” to help them sell lucrative broadband and phone services.
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