Monday, September 26, 2011

Will Consumers Save Money as Streaming Grows?

There are reasons to wonder whether consumers will be able to save much money, if any, if or when online access expands. One reason is that content owners do not seem willing to sell their content in ways that would allow such savings to occur.

“Don’t sell products into a platform where you end up with less money than when you were selling it to the previous buyers,” says Time Warner CEO Jeff Bewkes. Some might not believe content owners will have the ability to enforce those policies, but for the moment they seem to be able to do so.

That bit of advice suggests why consumers might not save much money, if any, as professionally-produced video and movie content distribution shifts from current channels to new channels.

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