John Malone: Cable Companies Need To Merge And Cooperate To Combat Netflix

The chairman of Liberty Media compares the growing sense of bitterness in pay TV to the dysfunction in Washington: There’s so much tension lately between programmers and distributors — especially over pricing — because “like [in] the political system, the moderates have been driven out of the business,” John Malone told an investor gathering. Internet video services led by Netflix have become so popular that they’ve pressured traditional pay TV companies to focus on short term gains instead of deals that would create long term value. Netflix has an advantage using the Internet because it reaches the entire country and its “local distribution is incrementally free.” Hollywood programmers sell to Netflix because it’s “found money.” Yet cable operators are hamstrung. “As big as Comcast is, it has a 25% footprint. You can’t buy national programming when you have that kind of footprint.” Distributors also shot themselves in the foot by waiting so long to roll out their TV Everywhere streaming services. If they’d moved more quickly then “we’d be looking at new revenue streams and the ability to manage ad skipping and so on.” Instead, they’ve “created this window of opportunity” for Netflix. (more…)

This article was printed from https://deadline.com/2013/10/john-malone-cable-companies-need-to-merge-and-cooperation-to-combat-netflix-608195/