The opening keynote at the Next TV Summit featured Michael Pachter, managing director of equity research, Wedbush Securities, interviewed by Jeffrey Cole, founder and director, Center for the Digital Future, discussing “Streaming Subscriptions: Winners and Losers.”
The conversation began with Netflix, and Pachter touched on how broadcast and cable networks used to be a little quicker to license their hit shows to the streaming giant.
“Netflix pulled the wool over the eyes of the media companies,” Pachter said. “They’re so far ahead now.”
Leslie Moonves, former CBS chief, offered that network’s programs to Netflix soon as their season ended, Pachter said, while Richard Plepler, former HBO chief, did not. HBO has proven adept at making a hit show last for months, keeping audience churn down.
“You never quit,” said Pachter. “That’s the right model.”
Pachter believes Netflix does not charge consumers enough. “Netflix broke the model,” he said. “They gave us too much content for too little money.”
Among that content, Netflix movies are not working, he added, because top Hollywood talent is reluctant to partner with the streamer as those films do not get full-blown awards consideration. “That’s a persistent problem for Netflix,” Pachter said.
The conversation moved on to the more traditional networks launching their own costly streaming products. “Media companies stupidly followed Netflix into the crevasse,” said Pachter, who singled out Paramount Plus, which he said “doesn’t have enough content–they can’t compete.”
On the cable front, Pachter sees that side of the industry coming back, at least to a degree. “Old people aren't cutting the cord — they’re just dying,” he said, and young consumers just have too many viewing options to consider signing up for cable.
But the cable bundle does continue to be a draw for part of the population. “You do need the bundle, you just don’t know you need the bundle,” Pachter said.
Smart cable operators will make Netflix, Prime Video and other streaming players part of the bundle they offer subscribers, Pachter believes.
The convo moved on to broadcast, and how much longer those networks can afford major sports rights. “The sports leagues are going for the dollars and not thinking about the long-term consequences,” Pachter shared. “The leagues hurt themselves if they make it hard for the fan to find content.”
The Next TV Summit is part of NYC TV Week, hosted by Broadcasting+Cable, Multichannel News and Next TV. The Advanced Advertising Summit happened September 9, Next TV Summit takes place September 10, Hispanic TV Summit is September 11 and 40 Under 40 happens September 12. The first three events are at etc.venues in midtown Manhattan, and 40 Under 40 is at 230 Fifth.
