News Briefs From Ctam Digital

Cable World,  April 14, 2003  

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BRESSLER ON THE BUSINESS MODEL

Viacom CFO Richard Bressler dished out some tough love as the CTAM Digital keynote speaker, warning of the dangers to programmers and distributors alike when advanced digital services aren't matched with a business model that makes sense for both. Free video-on-demand "makes a world of sense from a cable operator's perspective. But the logic of the business model is more than a bit flawed from MTV's perspective," Bressler said, noting that subscribers would be paying the MSO for the digital cable package that includes MTV content while the network gets nothing from the MSO. "That creates a disconnect and undermines MTV's incentive to participate," he explained. What's "free" for the consumer and the MSO can cost MTV additional rights fees, packaging costs and could undermine ad sales. Similarly, he said, free SVOD content costs the programmer while leaving money on the table as Viacom's research shows customers are willing to pay up to $11 a month for premium VOD. Bressler also stressed the need for copyright protection and the potential damage to the advertising model from mass rollout of DVRs.

AND THE HD SURVEY SAYS...

The results of the latest CTAM Pulse survey on HD attitudes suggests that 28% of adult television households are very likely or somewhat likely to go HD if the cost of a wide-screen set and decoder falls to $1,800 during the next three years. The numbers barely budge at $1,500 and $1,200. At $600, 57% would be in that category, which would grow to 65% at $300. But a daunting 23% would be unwilling to buy even at that bargain-basement price, suggesting there is a large segment with no interest in HD whatsoever. More than one-third of digital cable subscribers and broadband users have a great deal or quite a bit of interest in HD while 47% of total cable subscribers have little or none, according to the Centris telephone survey of 1,017 television households.

B-TO-B SEMINAR SET

CTAM will inaugurate an annual business-to-business seminar May 15 in Atlanta. John Dyer, SVP of operations for Cox Communications, chairs the new CTAM Business Services Planning Council and is co-chairing the one-day "Let's Get Down to Business" seminar with Ken Fitzpatrick, SVP of business services for Time Warner Cable.

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