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Consumers will “still pay for quality, but not bundling mediocre content,” asserted Bruce Tuchman, president of AMC and Sundance Channel, on Thursday at the International Broadcasting Convention (IBC) in Amsterdam.
Speaking on a keynote panel titled “is TV Facing Up To The Internet Era?” — a big question at this week’s event –Tuchman warned, “the pay TV model has ruled for years, but challenges are alarming everyone in the industry. TV-loving consumers had one primary source to access their linear content. … Then Netflix figured out how to provide very high quality video [without a set-top box], and now consumers expect a whole world of high quality, much cheaper alternatives.
“[Consumers] will have no time to watch anything that not up to par,” he added. “Only top content will make it into this new world. [This model] threatens the expensive bundle.”
Rhys Noelke, senior vp strategy, RTL, projected that online video will make it more important to have global brands and global content, prompting more bundles across multiple territories.
Tom Toumazis, head of partnerships at Yahoo, agreed, citing as an example that Yahoo is partnering with the NFL this fall to show a live game, ad-funded, between the Jacksonville Jaguars and Buffalo Bills in territories other than the local markets of the two teams.
On mobile models, Toumazis asserted that “the app ecosystem has won … Not being in mobile, not being in apps and not being at the center of data is going to cause challenges. The dollars are going to video and mobile.”
To that end, Erwin Jansen, CEO of Young & Rubicam Group Benelux and EMEA senior vp of business development, Wunderman Group, said, “In the last six months, Americans watched 30 minutes more video [per day] on mobile devices. As that goes from 30 minutes to one hour, you will see some shift.”
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