HBO Boss Predicts More Power For Programme Makers

The traditional power balance between programme makers and broadcasters will shift in an on-demand world, according to Simon Sutton, President of HBO International, who yesterday told the Oxford Media Convention that content producers would gain the upper hand in the future.

According to the American TV boss, video on-demand will create a gradual “shift in power from networks to programme makers,” as “signature shows” become more important to broadcasters seeking to create an identity.

The increased choice offered by digital TV means that power over viewers is no longer dictated by reach, Sutton explained, but by the content on offer by individual broadcasters.

“Viewers will always turn to quality,” he explained. “The value is no longer in the airwaves, but in the programmes.”

Sutton stated that the creation of on-demand delivery services will only increase this effect, with broadcasters under less pressure to fill a 24 hour schedule able to concentrate more closely on quality content.

Video on-demand (VOD) will also cause problems for networks reliant on traditional ad revenues, Sutton said, as VOD allows ads to be skipped in the same way as with a PVR. According to the TV boss, HBO’s position is strong due to its status as a solely subscription-based service, which does not carry advertising.

The broadcaster plans to introduce its model to the UK, building upon existing mobile TV agreements with Vodafone in Europe, as well as launching its own channels in Britain.

TV outside the home is an important area of growth, according to Sutton, with HBO’s existing mobile services seeing success through “classic” content viewers are likely to have seen before. This content capitalises on time-limited viewing, with the TV chief explaining: “We would not show one of our longer dramas on mobile, as they require a certain amount of concentration from the viewer.”

HBO: www.hbo.com