Netflix Isn’t A Threat To Media Companies Says Time Warner CEO
Jeff Bewkes, CEO of Time Warner has said that despite Netflix’s growth over the last few years, the company isn’t a real threat to media companies.
“It’s a little bit like, is the Albanian army going to take over the world? I don’t think so.” Bewkes told the New York Times.
According to Bewkes, Netflix growth (the company stock is over $200 a share) comes from the Starz partnership that is up next year. With the Starz contract, Netlifx could stream Sony and Disney movies that were on the Starz channel to it’s viewers, which caused a cut in Starz revenue from cable subscribers.
“Why should anyone subscribe to Starz when they can basically get the whole thing for about nothing?” Bewkes asks. “That doesn’t make much sense.”
Netflix was welcomed by the industry when it began as a DVD-by-mail company, which no one foresaw effecting DVD sales the way it has… and now Netflix is threatening to do the same with cable television.
HBO, a paid cable channel, is looking to launch HBO GO for subscribers, an online service that will allow streaming content. “Once you put it on Netflix, you really can’t sell it anywhere else,” said Bewkes. “This has been an era of experimentation, and I think it’s coming to a close.”
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