Time Warner Cable has more than 300 content contracts, and some of them may bar media outlets from providing content to online pay-TV services, Time Warner Cable Chief Executive Officer Glenn Britt said.
That's one reason why the disruption of today's video entertainment business will take some time. It's all about the content, and the distributors and content owners seem content to keep much of it locked up.
Also, content provider and distributor business interests are not fully aligned. Content owners want to sell to as many distributors, using as many platforms as possible. Distributors want exclusivity.
Still, there are small and persistent signs of change. The perceived value of a video subscription appears to be declining. While close to 90 percent of U.S. broadband subscribers also buy a video entertainment service, the perceived value of the service relative to prices paid has declined.
For example, in 2012, 55 percent of entertainment video subscribers rated their service as a good value.
In 2013, that percentage had declined by 10 percent, down to 49 percent of video subscribers.
More importantly, the percent of subscribers that rate the value of their service as “extremely good” declined from 31 percent to 25 percent, down 18 percent year-over-year.
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