A trend once long denied by media executives is increasingly taking center stage in industry news. This week, Time Warner CEO Jeffrey Bewkes confirmed what many of his peers have been reluctant to admit: cord-cutting is real. This admission was hard to avoid as he revealed to analysts that Time Warner properties have been losing subscribers due to the exodus from cable, and that those losses are expected to continue.
Despite the well-documented cable woes, Bewkes was confident that the company’s digital strategies would keep TimeWarner well positioned for the future. HBO’s much anticipated standalone streaming service is set to become the centerpiece of that strategy. While the CEO did not specify pricing for the service, he assured investors that it would be in line with other premium products.
While the cable business model may be eroding, Bewkes insists that content creators like Time Warner will be just fine, eventually going on to take back market share from digital competitors like Netflix. There’s no doubt that much of the content consumers demand originally comes from the big television studios. What’s changed is merely where they get it from, so content providers can still use that to their advantage, and continue to win despite a changing TV environment.