Turner CEO: how he’s anti-customer and wants to encourage piracy http://tinyurl.com/2bzx64m
Netflix has been very successful because it is customer friendly. Right from the start they realized that the customer was who they were their to serve, unlike TV Networks and Cable channels who are their to serve their advertisers. It didn’t matter to Netflix if you had a DVD for a night, or kept it all month immediately spoke to customers who hated DVD rental late fees.
They have worked consistently to create a business that customers like. I’ll likely become a customer when we upgrade to the newer Apple TV. On the other hand here’s what Turner Broadcasting Systems chairman/CEO Phil Kent) thinks:
But if you thought Kent was being hard on the studios—Warner Bros. is actually a corporate sibling of Turner’s—that’s nothing compared to what he says the industry is doing to Netflix to effectively block Reed Hastings from getting his hands on premium TV series. The new and old broadcast sitcoms and dramas Turner pays billions for may never even get an opportunity to be on Netflix because Kent implied SVOD rights are being “frozen” in the latest rounds of dealmaking.
This is after putting pressure on the studios to not allow Netfilx to get access to the content. And yet, Netflix is the brightest light the program producers have. It’s the closest business model to what customers want that we currently have and they WANT to pay “Hollywood”.
We have customers who are increasingly demanding “what I want to watch, when I want to watch it, on the device I choose for a reasonable payment”. That’s my demand. So far, only Netflix goes close; at least with the three parameters under their control (when, device, payment). But cable, and networks, want to thwart customers and keep desirable content from Netflix so they can continue to prop up a business that is built on a scarcity that no longer exists (or will no longer exist shortly). There’s only one outcome from that, and it doesn’t involve Turner getting any money and it robs studios of some money they might have made via Netflix. It will encourage unauthorized distribution, which is more a symptom of a market need/demand than a desire to obtain something free.
But Kent is not without some measure of mercy. He did say that Netflix still has a seat at the table, but for the scraps. He talked about a deal between Netflix and Warner Bros. TV Distribution for the FX series “Nip/Tuck,” a program that drew little interest from the TNTs of the world.
Thanks for the scraps Phil, but we’re not willing to settle for it. The scarcity that is a cable channel (access) today won’t exist in the near future and when it doesn’t, the only place Turner might have an outlet would be on Netflix. No, wait it won’t because Turner wants to provide programming on their schedule, and that’s just not enough anymore.