Thursday, December 9, 2010

Netflix Offers Digital Dimes, Time Warner Wants Dollars

Netflix is offering $50,000-$100,000 to stream current television shows, says Time Warner CEO Jeff Bewkes, but traditional channels still pay “millions of dollars” per episode. New online entrants, he said, would have to pay the same as traditional channels.

Though it is understandable that any traditionally prosperous, high-margin business would want to preserve its business model in changed circumstances, none of the rest of the media (music, print, radio, for example) is proving to be capable of sustaining the old business model.

The business will have to change. It won't change as fast as some would like, too fast for those who resist, but it will change.

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