Time Warner CEO On TV Content And Bundling

Jeff Bewkes, CEO and chairman of Time Warner Inc TWX was recently on CNBC to talk about the changes in TV content and bundling.

The Bundling Situation

“What’s happening all over the world is that TV content is getting better and people are getting more supportive of it,” Bewkes said. Explaining the plethora of customer options, Bewkes discussed the options of advertising to pay for content, and pay-by channel options, "It’s giving you more choice, it’s giving you more quality.”

He continued, “It’s kind of an explosion of activity and now we’ve got the Internet, which is a way to deliver TV even in more optional environment[s] and manners. So, basically it’s good in a worldwide setting.”

Is There A Breakdown In Economics?

“No, it’s getting better,” Bewkes said. “I would challenge this

bundling

idea."

"I don’t know what the viewers are thinking about the bundle. I mean, is it laundry? What is it? It’s basically if you think about your television dial, you have hundreds of channels and choice and that’s very valuable because in your house different people want different things. Everyone has their 10 or so favourite channels that they want; it’s just that your 10 are different than your wife’s 10, and the kids are different yet again.”

Further Exploration of Bundling

“So, I don’t think we are really looking at this quote unquote bundling."

"I think we are talking about more choice. So, if you want the most choice, when the most convenient. You go watching your house and keep watching as you leave the house, you’re going to want as much, as many channels as you can.”

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