Pay TV channels are devaluing their brands
Liberty Global CEO Mike Fries told the pay-TV industry that by selling on their content to free-to-air networks they are devaluing their brands.
At yesterday’s ASTRA Conference in Sydney, Fries’s speech encouraged pay-TV executives to develop brands the community could relate to, and to keep their key content exclusive.
According to Fries, an emotional connection to channels could generate a connection with the provider as well.
“Customers, on average, have between four and six channels that they really love and brand is such an important part of that channel relationship,” said Fries.
Fries told the audience that he had notices that 80 key pay-TV programs had been sold on to FTAs in the last five years.
“This is unheard of in markets like the US and Europe – imagine Sex & the City or The Sopranos without the HBO logo at the end. Particularly in a newer market with 30 percent penetration where differentiation is key, local channels are devaluing their brands by letting free to air networks take the glory for their hard-earned programming,” he said.
Fries also warned the local pay-TV industry that they have to be prepared for a lot of changes, with increasing demand for HD content, as well as changing viewing habits with time-shifting and PVRs.
