OTT Resistance Is ‘Foolish’, says Time Warner CEO

Time Warner Cable chairman and CEO Rob Marcus told analysts Thursday that the cable industry should embrace over-the-top video, but added that at this stage of the game, the full cable bundle still appears to present the best value.

“At the highest level, we embrace over-the-top video,” Marcus said on a conference call to discuss second quarter results. “It highlights the value of the high-speed data offering that we deliver. We think it would be foolish to resist what might otherwise be an attractive behavioral trend.”

At the same time, Marcus said operators want to make sure they don’t lose customers to OTT video services and so far he said cable offers more content, better picture quality and more on demand choice.  “I feel like we can compete on that front,” Marcus said. “To the extent we don’t, shame on us.”

Already several programmers have launched direct-to-consumer video initiatives, including Home Box Office with HBO Now, Showtime and CBS All Access. Others are also looking into direct-to-consumer products – Walt Disney Co. chairman and CEO Bob Iger recently said ESPN could go direct in five years or so, and yesterday Starz CEO Chris Albrecht said a direct offering is one of the things the premium channel continues to evaluate.

But Marcus warned that content providers looking to bypass distributors and offer programming directly to consumers would be safe to price those offerings fairly.

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