tv [untitled] June 5, 2012 4:30pm-5:00pm EDT
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talking about, it may be likely where it's a closed network effect and that people are kind of -- they know what kind of bundles they'll get and what places and what times. really not happening yet online. but even from the small testing, i think people will start to habituate around those type of programs over time. >> are you seeing demand yet? how do you describe the demand for the mobile? since more people have smartphones than dvrs? are you seeing people demand things? >> we have not seen that. we have messed around with mobile quite a bit, and i'm not sure what the future will bring, but at the moment people see the purchase of mobile services and devices as quite different than what they buy in their home. and i'm not sure i completely understand it, but i think part of it is that individuals choose a mobile device and households
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by the wire line service. that may sound like words, but it seems to make it not naturally put into a package. and we have tried all sorts of different things so far. that's why we're selling our spectrum. >> right. that's pretty fascinating. you know, i hadn't thought about it that way. but it makes a lot of sense. individual decision, versus a family one. i want to throw out a question about apple. i'm not a tech savvy person at all, but so i apologize if my phrasing is not great. we look at apple of being so dominant, is a vet, sexy. the kids all want it. then we hear about the systems being sometimes difficult to work with. from the perspective of an operator in cable, how is it working with apple and apple devices as opposed to samsung devices or whatever? >> from my viewpoint we want to
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be on every device in the home. so apple is a wonderful company and they have a brand that's terrific. i have lots of apple devices personally, but we want to be on every device. so whether it's the xbox or sony playstation or samsung smart tv, we want to be on everything. >> can you tell, david, where people are watching? i mean when you look at -- i guess this is part of your partnership. not just whether they're watching on mobile versus watching at home, but also what type of device they're watching on? >> glen can tell. >> can you tell, i mean, what terms of users? i would imagine that tells you about the demographics and who is watching what and the big debate as to whether people are going to use the ipads as a small screen.
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>> we theoretically know what you're watching in your house if you're watching in digital format. we don't know if you're watching or not. or what you're tuned to. but our ability to do anything with that information is very much controlled by the privacy laws. and so we do have some ability to homogenize the data and things like that. because the industry is fragmented and advertisers would like the data across the coun y country, it's been difficult to actually do anything with that in terms of monetizing it. but, yes, theoretically we have that information. >> what we could see anecdotally is, you know, i think there's probably never been a better time to be in the content business. people are watching more tv than they ever before and the fact that we're not measured on the ipad, our market grew double digit last year on our channels.
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people spending more time with our channels and over time the ipads will be measured and will pick that up. every one of the new devices because we're platform agnostic and i think almost all content players are. it's another person who wants to pay for our content. we have to decide which window, do we give them or long form or short form and how much do we charge for it? the fact that there's this development of all of these different devices and opportunities, i think presents opportunities for us. but we shouldn't get lost in the fact that the business itself is enormously healthy. the cable business is very, very healthy. and we're investing $100 million more in content this year than we did last year. and last year we invested $100 million more than the year before. we're doing that because we believe if we invest in our channels people will spend more time, we'll be able to grow market share with our brands. that will be good for glenn, because the cable guys sell within our shows.
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the traditional business of great brands, quality content, great storytelling, that's what gets us the majority of value and then all of a sudden now there's a lot of line of other people who want our contend and we have to make sure we get good value. if we do, this could be the best time to be in the content business. >> so i saw a statistic last week, this is that the average household, not the average person, the average household watches tv 400 hours a month. that's a whole lot of tv and it's been going up, not down. and this -- they do all this for about -- i think on average $75 -- actually, quite an economic deal. and i think as we think about the tv space which is mostly what we have talked about, we need to keep that in mind. most of these other things don't offer that kind of value to consumers and that's why it
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remains a good business. >> thanks very much to all three of you. thanks to all of you. a look now at some of our live coverage today. the u.s. house is in session now on c-span. members are considering a number of bills including spending next budget year on energy and water projects. 17 months after electing republican scott walker as governor, wisconsin voters are reconsidering that decision today. he's facing milwaukee's democratic mayor tom barrett in a recall election. c-span 2 will have results tonight starting at 9:00 eastern. here on c-span 3, we'll be live tonight at 8:50 with the discussion between warren buffett, the head of berkshire hathaway and david rubenstein, the cofounder of the carlisle group. a major investment company. that discussion on the current state of the economy.
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>> tomorrow, the senate banking committee looks into financial industry regulations. members are focusing on the rules by written by the securities and exchange commission to implement the dodd-frank law. the hearing will examine the $2 billion trading loss at jpmorgan chase. you can see live coverage tomorrow morning at 10:00 eastern here on c-span 3. thursday we'll bring you live coverage as ben bernanke gives his annual economic outlook to congress. it begins at 10:00 a.m. eastern. well, over the past four years, david maraniss has been researching and writing his book, and he's traveled the globe and spoke with the president's relative ofs in kenya. he toured the family homes in kansas to find the origins of his mother's family.
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it comes out in bookstores on june 19th. but book tv will give you an early look with exclusive pictures and videos including our trip to kenya as we travelled with the author in january of 2010. so join us sunday, june 17th, and then later at 7:30 that same night, your phone calls, e-mails and tweets on book tv. we've got more now from the annual national cable and telecommunications discussion. this is a discussion of the video, filled and music. julia boosten spoke with edward burns and this discussion is about 30 minutes. >> thank you, all, for joining
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us this morning. i want to get straight to the news. i understand that verizon is making a new exciting announcement about a new mobile video network. >> well, we have waited until today. we thought this was the right atmosphere and the right audience to announce view-dini. it's a mobile portal video portal for aggregation and delivery of mobile content. so there's a very unique thing going on right now, and that is that the desire of consumers to be able to absorb any video on any device that they have, any time that they want, and that aligned with verizon's lte high speed network and then with what has occurred in terms of the tablet and the smart phone industry, this all came together. we have been working on this for a couple of years. this is a verizon wireless product. we're very proud to announce that comcast xfinity is our
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first partner in this. we'll be showing it. we have it over in the comcast booth. i'm going to be going over there after we're done here and hope that many of you will come by and see us over there. it will be in the market in next three or four weeks. >> this is a new app to allow consumers to search for content. they could say search ed burn, i want to see all the movies he's directed or acted in, and this will come up with a list of places they could view it. it might direct them to netflix or comcast? >> search, discovery, it will take all of the partners and the sources into play. then you can do the search. it's very simple. then you can do the research. so after you do the search, if you wanted to check on ed's other movies and co-stars and back under, you'd be able to do that as well. it's a very simple consumer experience. >> comcast is a partner on this.
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tell us about the relationship and what this means for comcast. >> well, we have a partnership with verizon wireless. it has been a terrific partnership for us. we felt as the content becomes more mobile and people want to consume it in different places, different content, wherever, when ever they want to, we thought it would be a great way to view it. it's about getting the content to people where they want to consume it. >> what does this mean for a company like vivu. you live on youtube. how will you interact with the service like this? >> i think it would work really well. you know, our fill fphilosophy want to put music wherever the audience wants it to. if justin bieber wants to work with youtube we'll put the video there. if lady gaga puts to put it on
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her facebook page, we'll support that. we distribute the videos to thousands of peoples on the web including our own site and apps. we'd be happy to make the videos available and our data available. if you want to watch beyonce in austin powers through xfinity, you can do that. or if you want to do it through vivo, you can do that as well. >> and i know you distributed it through your the other vod systems. what does a mobile distribution platform mean for you? >> i think it's just sort of indicative of the change in the landscape. in '08 i released a film directly on to itunes. and it was the first film to be sort of -- to go exclusively on a digital platform. when i did the press for that film, 75% of all the journalists said to me, you're absolutely crazy, no one is ever going to watch a movie on their computer. let alone their phone. and here we are four years
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later, this is being introduced and clearly what you said before, the where, when and how. the audience has changed. they aren't nostalgic for the way that we consumed entertainment. they don't long for the theater. and, you know, they don't long for their primetime programming where the family is going to sit down at 8:00 and watch "happy days." they want it when they want it and this gives them that. >> one of the things we found through distributing the content is we ended up forming an indie film club because we saw the popularity of your films that you launched digitally. >> i mean, for independent filmmaking it's changed. across the country, the indie film market has close and we found out that they're home, in front of their flat screens, with their surround sound. and they still want this content. they're not willing to get into
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the car to drive to the theater. >> it's important to give it them to on their terms? >> that's exactly what we're focused on and what has really enabled this and what caused the development on this a couple of years ago we saw the capabilities of the lte network. so verizon wireless is the global leader in terms of lte. we handle about 60% of the global traffic. so we're an early adopter. we saw the possibilities and we saw the hunger of consumers to be able to get this information whenever they want, on whatever device that they have. and, you know, very excited that we have the right tool to deliver that. >> i know you think about the importance of making content ubiquitous. tell us about that. >> i just think that that's the way that the physics of the web operate. that it's no longer about how do i create value through scarcity. it's about how do i create value through giving my audience what
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they want. so when we started vivo three years ago, our challenge wasn't how to put music videos on the internet. that was not a problem that needed solving. our strategy was how do you make the audience that loves music as valuable as the audience that loves the super bowl or that loves the world cup or the olympics. there's billions of people on the planet who love music. it's a pipeline to the soul, it's a way to elicit an emotional response. and how do you make that audience valuable, because it's not about selling music to people who don't want to buy it. but how do you give it to them in an easy way. so we said let's not create a site and tell people they have to go there. let's put videos in the highest quality possible and let's create events and new programming and concerts and put
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that on youtube because everybody loves youtube. and let's put it on facebook because everybody is spending time there and let's build a bunch of apps and put them on yahoo music because a lot of people go there. let's embrace a chorus, this massively distributed strategy that reflects the culture we live in. >> it seems like there's a real dynamic between what the consumers want and what technology can now enable. sort of a chicken and egg. it's unclear which is directing which. i want to hear from what you think consumers are demanding right now. is this in response to consumers are leading consumers? >> consumers are hungry for this. we think this is one of the most important announcements of the year. that's why we held it for today. we see the hunger in consumers using their devices in so many different ways. it was only nine years ago that
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we all started using text messaging and we weren't sure that was going to be a business. now, verizon wireless processes 70 billion text messages a month. this is an evolution in terms of the consumer experience from a mobile platform. that's where our focus is. >> do you think, neil, that y you're leading the consumer to the new options or are you demanding them can. >> i think a little bit of both. i think the broadband capacity, there's demand for more capacity and more band width. so with going all digital we're serving that demand and the bandwidth demands continue to increase. i think, you know, the partnership we have with verizon wireless helps fuel that demand by being able to offer things in both the mobile and the in home and out of home setting. you know, i think that cloud-based nature, a lot of the announcements we have made here are enabled by putting our stuff
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up in the cloud so we can innovate at a faster pace. i think the technology has fuelled the consumer demand. you think of tablets and tablets the consumers didn't dream those up. but there they were. all this demand came out of it. so i think it's a mix of, you know, technology fuelling it and consumers saying okay now that i have got that i want more. >> then that's question of what this does to content. this is all about consumers accessing content, especially now with the rise of streaming video. how has the opportunity to distribute through vod impacted the film business? >> you know, there are two very different businesses. there's still a very healthy sort of theatrical business or obviously take a look at what the movie like the "avengers" has done. that audience is still healthy and robust. on the other side of the spectrum, folks are making
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smaller dramas and indie films, the idea now that we could have a more direct relationship with the consumer and also reach a much wider audience at that moment when your title has reached its sort of -- it mass awareness. you know? you can go on and do jimmy fallon or conan and do publicity and tradition what would happen is those films would open in new york and l.a. and then slowly roll out over the next eight to ten weeks over the rest of the country. now when you do the show, that kid at home in ohio who doesn't have an art house theater near him can go on vod via comcast or the other digital platforms and access that title right away. that's been the real game changer for the smaller films that don't have the advertising budgets to compete with the "avengers." >> what is this doing to the music industry? we have seen the traditional record business really be killed over the past decade or two. is this creating a new revenue opportunity for that type of
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business? >> i would say a lot of people think about the music business as, you know, the business as they know it today. but i look at 1,000 years ago, music was not a business, music was a public performance, a project performance. and only in the last 100 years have we packaged it into a discreet ost. give me $10, i'll give you a cd. so that transactional business is relatively a short blip on the continuum of time. so where the future of music is, is like the dawn of music. which is about access to music, and access to experiences. and i'd say that's what the future of games is, and that's what the future of film is, and that's what the future of television is, and that's what the future of books are, it's not about owning everything, it's about accessing everything.
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>> ak saysing it through bodband. >> i can't access it here through boston, the utility value has plummeted because i can't access it whenever i want to. but if i can access it wherever i want to, i can appreciate it more and love it more. so access creates the opportunity to raise the value of my music collection. raise the value of my game collection. because i don't want to own every movie, i just want to access whatever movie i want. that is disastrous for the dvd business and economics of traditional hollywood, but good for the consumer because it creates more choices and options and takes away barriers to discovery. i think about when i was growing up, i wanted to like classical music. i go to tower records. but i couldn't get into classical music because every cd was $27. and so i didn't get into any classical music at all because there were too many barriers to consumption. now i can pay $9 a month and
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listen to thousands and thousands of classical albums. i can discover anything i want. there's no friction between me and discovering and sampling. so that leads to greater enjoyment of music. >> so access is what you're saying, access is much more valuable than ownership. >> i think we're going through a generational shift between a generation that values ownership, to a generation that values access. and i think that we're living in between both worlds right now. >> all of this access is enabled through the cloud and broadband and wireless. >> i think one of the most important things to rio's comment in terms of access, this is massive amounts of data that we're talking about, in rio's example. and the importance of simplicity for consumers, for discovery, for navigation, for prioritization, for research, is what's really important here. or consumers will get overwhelmed. so that's one of the principles that we have in the houdini is
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that simplicity. because we want customers to have an outstanding experience, and we want to make sure that they come back, and that they continue to use it. and their curiosity is piqued and their hunger for more consumption of content is there. so that's the principle on top of our high-speed network, lte network that we're focused on. >> i think it's interesting, because both you and rio, ed, are content providers and we're more distributors, dan. and the conversations between content providers and distributors are much more interesting these days. it's not just pay this rate and get that content. with the digital component of all the arrangements we make, it opens up a lot of possibilities that we didn't have before. >> i think also, the other thing that's changing is the type of content. you know, you're starting to see web series gets more popular.
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take a look at something like "funny or die" and the short form skits which are the perfect thing to consume on your smartphone while you're in a cab or something like that. a lot of filmmakers are starting to talk about, maybe there's a way we break up our indie film to offer it up in smaller chunks. take a look at a program, like madmen, which has really changed sort of that hour-long program. it's more like your u digesting a massive novel as opposed to the one off episodes you used to get. i think, you know -- and it's interesting. i don't know who's dictating what, is it technology, the audience? i had an interesting thing two summers ago, i was at a friend's house, and they have a big screening room in their basement, and i got the assignment to go down to the basement and get the teenagers, they're downstairs watching the movie. there's four kids in a beautiful state of the art screening room. in the back row watching two
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different shows on two laptops. i saw that and i was like -- >> this is the future. >> it's a brand-new world. this is the future. >> the other thing that i think ties into that that is important, so we're the largest provider in the united states of wireless service. 300 million users across all of the carriers. and now with the interest and the desire that consumers have, if you're a content provider, i think that those 300 million customers would be of interest to you, in terms of the delivery mechanism, and the vehicle. i think we're at the very beginning stages of that transformation. but i think it's an important profile of our wireless industry. >> now, earlier you mentioned just the massive amount of data. streaming videos, movies, takes up a lot of data. i'm curious what you guys think, and i know this is something you
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think about as well, how the consumption of all of this video is going to be changing the way people pay for and consume data. >> i think from our perspective, we wanted to make it more flexible for the customer and give them more choice. so if they wanted to consume, you know, tera bytes, for example, they could buy tiers that would provide that for them. really, from our perspective, it was about flexibility and choice. it seems to have been well accepted. i don't know how you guys would look at it from a provider perspective. >> yeah, i think that it's reasonable to pay more when you want to use more, right? and i think that i certainly see that there's a finite amount of capacity, whether you're talking about a wireless network or not. and i think that at the end of the day, that, that the worst thing that can happen is audiences feel, consumers, viewers, users, feel like their
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ability to consume and discover and share is limited. and i can't watch that movie, because i got a warning saying i was at 80% of my cap. or i can't upload the video of my kids because i'm afraid -- i don't know where i stand with regards to my cap. and so that retards usage. and slows adoption. and is not good for anybody. >> right. >> so i think that the ability to -- if i use more, i should pay more. i totally understand that. but kicking people off because they hit their cap, and then cutting off their service i don't think is great. >> we want them to use it. >> right. so i like the idea of optically changing the way you perceive your limits, and being able to offer people unlimited consumption if you're willing to pay for it. i think that's always a
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reasonable thing. >> dan? >> yes. so you mentioned warnings. we consider them friendly consumer reminders. >> yes. it's all relative. >> yes. depends where you are. >> yeah. >> yeah. so on that principle, we give notices for data consumption to consumers that 50%, 75%, 95%, 100%, and then we also give them an option to continue to upgrade the data. so our focus is to have a phe m phenomenal consumer experience, and to never have the consumer surprise. so we've gotten great feedback from the consumer community around those notices. and then we have tiered pricing. now, one of the things that consumers are going through is to understand what a gigabyte means and what -- you know, how much that is. so we work very hard at the point of sale, and in our service delivery centers, to help educate consumers around that.
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so i think that the industry -- the wireless industry is doing a good job in responding to those needs. i do expect that the consumer interests in data, and data consumption is going to continue to increase. and i think that you'll see that the tiers for consumption will continue to evolve. >> it seems inevitable people will just consume more data, whether it's through wireless or broadband. but rio, are you saying that you think consumers sort of need to be reeducated about how one pays for this? >> i think it's an evolution. i don't think consumers should actually have to understand what a gigabyte is. i think it's useful that they understand how it is in the context of what they're paying for. but i think that it's very hard to translate how many -- is a stream on an hbo show a gigabyte or not.
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