Network Presidents Still Looking at Ways to Monetize New Delivery Systems
BEVERLY HILLS, Calif. -- The five broadcast network entertainment presidents agreed that the proliferation of delivery platforms presents an opportunity and a risk. Speaking on a Hollywood Radio & TV Society panel, ABC’s Paul Lee said most of the emerging platforms are not yet “big businesses.” But he added: “We have to move into the new world with models that make money. We have to make sure those businesses are strong and give us dual revenue streams. Some of these technologies will survive and some won’t. … A new technology can come in and help us monetize. For example, when satellite came in, it drove up the price for cable."
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Nina Tassler of CBS said the broadcast networks need to protect the value of their creations. “There is always new technology and we have to find a way to make it enhance what we are doing,” she said. “It’s important we provide them with access on different platforms so we integrate all creative departments from online to marketing."
"More people are getting their content on different platforms,” said the CW’s Dawn Ostroff. “There will be new innovations. We expect mobile will be a bigger player.” But she stressed that all viewers need to be counted “so we can monetize all these ways people are watching."
Fox’s Kevin Reilly said the network does not want to be involved with entities that “end-around us by not carrying our commercial load or compensat[ing] us fairly.” He said research indicates that people are watching more, so the ancillary businesses “have to be careful not to destroy” the broadcast networks, which are responsible for the programming they are making money on. Reilly sidestepped direct comment on Fox’s dispute with Cablevision but did say the networks deserve an appropriate share of the money that cable subscribers pay for broadcast stations, claiming that produces $550 million in profit for Cablevision. “Why is USA Network getting compensated for running House reruns when Fox is not compensated for running House originals?” The other broadcast network presidents agreed that the dual revenue streams are vital to keeping the broadcast model healthy.