• by Wayne Friedman , May 12, 2010

Los Angeles -- Growing new media technologies are good for video content in a general feel-good, blue-sky scenario -- but TV networks and movie studios still want a real business model.

On a panel at The Cable Show in Los Angeles, Les Moovnes, president and CEO of CBS Corp., says: "Every single piece of technology that has come out has been good for content to experiment and put out there." But Tom Rothman, chairman and CEO of Fox Filmed Entertainment, says there are near-term business concerns: "I don't think it's good for content to be out there all at once... There are going to be tensions between our business model and consumer demand because we have to get paid."

Moonves did agree that near-term problems with new technologies exist. For example, "CSI" cost around $3 million an episode to produce. He says while there was previously one revenue stream -- advertising -- for that show, there are now a dozen, including retransmission revenues, DVDs and digital.

"The problem is I'm only getting pennies online. If too many people shift to online, I'm not going to be able to produce that show." Moonves says, explaining why CBS doesn't participate in Hulu.com.

Jeff Bewkes, chairman/CEO of Time Warner, was more upbeat -- especially in connection with what the cable industry has brought to consumers with new technology. For example, he says the good news is that growing video-on-demand services run by cable operators will be in 50 million homes next year. "It's getting more efficient and cheaper to get it to consumers," he says. "The business model is going to work."

But much more needs to be done to make it easier for TV consumers to determine what's playing.

Brian Roberts, chairman/CEO of Comcast Corp., demonstrated how the new iPad device can act like an easier and super remote control device to find TV shows, change channels, and make recommendations to friends.

When it comes to new devices, Marc Andreessen, general partner of Andreessen Horowitz LLC and the founder of Netscape, says more technologies and devices are good for content -- but only if a key ingredient is present: "In my industry, we build new devices assuming there will be high-speed technology" to carry content.

In regard to new devices like the iPad, Rothman says: "I smile at these things. [I asked the question] what is everybody watching? It better be good, and it goes to the fundamental issue: Content creators have to get paid."

Bewkes says the business model will improve for new technologies. He called on cable operators to make it happen: "I want to put out a call of action: Get your VOD robust. Get your interfaces to be stronger and better, and then take the whole thing and put it on broadband."

Rothman says content owners -- especially those movie studios that have depended on DVD revenues -- need new revenues soon. "It better come from somewhere," he says. "The DVD market lost $6 to $7 billion. There was a recession and format war." In two years' time, he believes, movie studios will regain some of this lost revenue.