Ten Bidder CBS States Netflix & Amazon “Could Eat Us Alive”
Chief Executive of American behemoth CBS and potential boss of Network Ten, Leslie Moonves, has referred to the pressure placed on traditional TV from tech-based online streaming platforms by stating “that [they] could eat us alive financially”.
Mr Moonves’ comments reflect the popularity of online streaming shows, developed by cash-rich organisations as Apple, Amazon and Netflix.
He also notes that the global television industry faces a “tough” future.
Mr Moonves states that the key to beating such tech-based competitors is in the development of original and high-quality content.
When asked about CBS’ potential plans for Network Ten, Mr Mooves simply mentioned that rolling out US video content into international markets would remain a core part of its strategy.
“A lot of countries try to do locally produced shows. Most of the time they can’t compete with the quality of our shows”.
Research has revealed that a rising number of American viewers (especially millennials) have abandoned free-to-air/cable TV for cheaper online streaming alternatives, charging between $US5 – $US10/month. Research firm, Kagan, state the move has caused US pay-TV providers to lose approximately 1.9 million subscribers last year.
By contrast, Netflix is said to have hit over 100 million subscribers in over 190 countries. Reports state the company is producing 75 original programs.
As previously reported, Apple is spending $1 billion on the creation of original programming over next year.
As part of its bid for Channel Ten, CBS has revealed its plans to launch a digital video on-demand service named ‘CBS All Access’. The service will reportedly cost $US5.99 – $US9.99.