Starz Exec Predicts Fierce Cable/Satellite Turf Wars

Speaking at the Southern California chapter of the Cable and Telecommunication Association for Marketing's Fall conference, Starz Encore Group President of Distribution, Que Spaulding, predicted fierce turf wars between cable and satellite, as the ongoing multichannel battle enters its next phase.

Spaulding noted that with net new customer growth rates slowing for cable and satellite operators due to general market saturation of video services, even fiercer turf wars between cable and DBS will erupt, with commercial-free premium services playing a vital factor in the potential outcomes.

"Research has consistently shown that consumers are willing to pay for commercial-free movies, be it with pay television or the video store," noted Spaulding. "And yet, so many cable operators, in their eagerness to expand the quantity of digital cable channels, have effectively priced out the critical piece of the equation (movies)."

Spaulding concluded, "Left unchecked, DISH Network could have a major competitive advantage over certain local cable systems. Nevertheless, if both cable and satellite launch versions of this concept, I believe both can maintain relative market shares and increase revenue per subscriber. This could be accomplished through 'growing the pie' of entertainment dollars and expatriating video rental dollars over to cable/DBS."

From SkyReport (Used with Permission)