The Time Warner chief delivered an unusually impassioned address today imploring investors to pressure everyone from pay TV distributors to Hollywood studios to deploy on-demand streaming initiatives including TV Everywhere and UltraViolet home video. “Not enough consumers are aware of these powerful enhancements and not enough consumers have them at their fingertips,” Bewkes told the Deutsche Bank Media & Telecom Conference. “We have to move much faster…You should absolutely demand that the companies in which you invest get serious and invest in this opportunity.” He’s most interested in television, the business that accounts for about 80% of Time Warner’s profits — and especially TV Everywhere, which gives pay TV subscribers the ability to watch shows on mobile devices on demand. ”The user experience today is really spotty. Some distributors make it easy and others don’t. You know who they are and so do they.” Specifically, Bewkes wants programmers to make more content available to TV Everywhere. He wants programs to be available on TV sets as well as tablets. He wants Nielsen to figure out how to measure the number of viewers on all digital platforms. And he wants distributors to make it easy to find and access programming. “You shouldn’t need to be knocked upside the head by an iPad to realize that consumers are demanding rich, flexible, intuitive user interfaces,” he says. Consumers “think they deserve it, and they do. And they’re voting with their finger tips everyday.”
He also wants the movie industry to expand its online presence. Although home video revenues are declining, Bewkes says that “the encouraging news is we don’t have a demand issue.” The problem for the studios is that people are buying less and renting more, especially from low-cost providers led by Redbox and Netflix. He says that Hollywood shares some of the blame. “It has not been easy to buy a movie digitally to manage your digital collection and to watch it on the device of your choosing, particularly the television,” he says. As a result, “the industry has come to a crossroads. We know consumers want to buy today, but they can’t do it with the ease and functionality that they have come to expect. We need to fix that and we should fix it quickly. If we don’t, we run the real risk of habituating consumers to rental when in fact they may prefer to own and build collections of movies.” That’s also why he wants to accelerate the rollout of the industry’s UltraViolet initiative, which makes it possible for people who buy DVD and Blu-ray discs to also stream the films. Although some of the early releases have been hard to access, “we don’t have the luxury of waiting for the perfect solution.” He says that consumers are used to seeing products improve over time. “We need to start this and get everybody including retailers involved in this effort.”


No, Mr. Bewkes, the days of wanting to buy and build a movie collection are over. It all had to do with being able to have access films or shows that I would want to see again. These days, I am happy to stream from a site where I am paying a reasonable monthly fee or am paying a small amount to rent.
The problem movie fan is that Multi Billions of dollars are still being spent each year by people who want to own their content and not rent. That blows your idea of no one wanting to buy out of the water. Sell Thru and Rental will coexist.
You mention “It all had to do with being able to have access films or shows that I would want to see again.” Well thats not true with streaming. You see the problem is that with streaming what is there today could end up being gone tomorrow. Want to watch your favorite Disney or Starz movie on Netflix, you better do so before tomorrow midnight when the contract expires and approx 1,400 films and tv shows go poof… vanish from the streaming system. I have been in the middle of many tv series only to find out the next night that the next episode in the series isnt available on the service. The rights expired.
The studios are in business to make money they are not a charity case. Selling $7 all you can eat streams cannot cut it.
He’s damn right about expanding the imprint of media consumption for all parties, however UV is NOT the answer, it’s a half ass attempt tied to physical media. We have the digital pipelines to serve the content, we need make sure those pipelines are open (mobile users won’t be caught dead streaming video if they have a 2GB data cap with their network provider), and that the system is dead simple to the user. Time to move beyond netflix and move into a fully digital system of entertainment where users have more choice and the choices that they make benefit the content creators more directly.
Amen. Ultraviolet is not the answer. It is just the only option the studios have where they have a financial stake. Netflix, iTunes, Hulu, etc. are already way more integrated into our devices and offer easy, cost-effective entertainment options (not that they are perfect). The studios are desperately trying to avoid the same situation that the music industry faced with iTunes. On one hand, iTunes saved the music industry from the threat of free file sharing, yet on the other hand, the labels offered up all of their content, but didn’t get a share of iTunes itself. Now they are beholden to iTunes and the other competitors that have cropped up (Amazon, Spotify, Pandora, Slacker, etc.). Ultraviolet is the studios’ latest attempt to control the platform, but it will fail just like the others (e.g. Movielink which was owned by Par, Uni, Sony, MGM and WB). It’s a real dilemma for the studios, but pretty soon, they just need to step up and embrace the existing platforms, adjust the “window” system to maximize profit, and put their efforts towards growing the digital entertainment ecosystem.
Bingo. Until Hollywood realizes their scheme won’t work, they’ll continue to screw up streaming as a business. Netflix could easily be the iTunes of video content, but Hollywood couldn’t deal with that. Until they get their shit together, I guess I’m stuck getting DVDs. Eh, I’ll survive, but streaming as an industry will stagnate until consumers are offered a sensible way to get streamed content, and that won’t happen as long as the studios are throwing up barriers.
The problem with this sci-fi fan is that there are many people who still prefer not to stream. There are many of us who dont mind digital but want the download copy for our system. Project Phoenix was introduced today (see google) By Warner and Fox to further promote downloading.
You see there are multi billions still being spent today on ownership. Streaming is just not an attractive option for the movie enthusiast.
If the movie industry wants to move forward in this new millenium of digital media, then someone had better start improving and upgrading streaming software and servers, because the devices today are crap, and streaming movies via NetFlix or Amazon, at least, are choppy at best.
Last weekend, I was trying to watch a movie via Amazon, and the movie had to reload every 2 minutes. If this is what we are to expect from VOD, then we are all in a world of trouble, and I fear for the future of homevideo.
P.S. I was utilizing Roku, which I thought was supposed to be one of the better streaming devices available.
Sounds like you have a service provider issue. I stream Netflix and plenty of movies (VOD) through AppleTV and never have an issue.
I agree with other the UV is NOT the answer and people really don’t care about “owning” movies anymore.
Sorry – i don’t provide answers though, i only clarify problems.
“I agree with other the UV is NOT the answer and people really don’t care about “owning” movies anymore.”- rb
Then why are people buying multi billions of dollars worth of movies each year?
You may not prefer to own (do you own your home? A Car?) but there are many people who still do.
Had the same issues, but finally solved them. It wasn’t the fault of my Roku Box or Netflix, it had to do with my old out-of-date router. New higher-end Router…No Problems!
Sounds like you need to increase your data speed with your internet service provider. You should have at least a 3MBPS internet connection to stream in HD and even then it might degrade quality during peak bandwidth hours (after work). I’m running 6MBPS and I usually don’t have much of an issue although I hit some errors over the weekend but that was a first in my 3 years of streaming netflix.
And Bewkes, put your money where your mouth is and sell HBO Go for $25-$30 a month without a cable subscription so we don’t need to subscribe to 100 channels we don’t want for the programming we do want.
HalfThere just nailed it – the next step is to be able to order HBO directly without cable & sat middlemen. It’s a service they should be able to provide… eventually… but the sooner the better.
Watched the full last Harry Potter movie via Amazon prime Sunday night via Verizon DSL on Google TV with zero hiccups… haven’t had any hiccups at all with the whole system with both Netflix and Amazon. If you are having streaming issues it’s your ISP.
One of the major problems on the immediate horizon is that the public has too many choices already! Tivo, Amazon, Blockbuster VOD, Netflix, Epic, Hulu, etc…etc… AND, each one of them is FEE-BASED! The suits have to figure out how to pull it all together because the public’s entertainment wallet has a limit as Netflix already found out…How many boxes and subscriptions does it take to finally turn everyone off?!
Consumers need one coherent source for all streamed content. They’re not going to bop all over the place to get NBC shows one place, Sony movies someplace else, etc. Netflix has taught us that it’s reasonable to expect to go to one site, type in any name that you can think of, and have a reasonable expectation that it will be there, either right away or on some kind of time delay. But we don’t expect that some content will simply never be there.
Why can’t I stream HBO on Netflix? Why can’t I stream Starz, Sony and Disney? Instead of jumping through Hollywood’s hoops, I’d rather just stick with my old dinosaur DVDs. Confused and inconvenienced consumers simply stick with what they know, and the streaming business will stagnate as a result.
> Consumers need one coherent source for all streamed content. They’re
> not going to bop all over the place to get NBC shows one place, Sony
> movies someplace else, etc.
I disagree. We don’t need one place, we just need to know where to go.
Haven’t we learned the lesson about having only one place to get content? I would have thought that idea was dying. Guess not.
I think that in the short term there will be even more companies trying to show the same titles to consumers. Look at the recent Verizon-Redbox deal and the newly announced Comcast streaming service. They are all fighting to show the same titles. It’s going to get more confusing. Hollywood will not get its act together until it is ALMOST too late. GoWatchit.com, for one, has been doing a good job aggregating titles and availabilities in the movie space to cut through the noise.
I want access to one huge database (cloud) that has every movie and tv show ever created so I can pick and choose what i want to have in my own library and create playlists so that I can watch anything I want on whatever device I have that connects to the Internet.