Time Warner Inc. chairman and CEO Jeff Bewkes said he was concerned about the high cost of programming for distributors, but added that rising rates are sustainable given strong product offerings outside of video and enhanced value they get through TV Everywhere rights.
"We do have a concern," over the sustainability of rising programming costs, Bewkes said at the UBS Global Media & Communications conference Tuesday, adding that distributors have other products like broadband and commercial services that more than offset the cost of programming. And programmers that offer robust TV Everywhere rights, like Time Warner, enhance the value of those offerings.
"We have offered a more robust suite of TV Everywhere rights than anyone else," Bewkes said. "That’s quite a lot of value.."
While he was confident that the distribution model will be maintained, he warned that multichannel video service providers do face some.