Cable Congress 2010 – Brussels: The business model for TV is likely to see linear channels eventually “completely go away” and be replaced by on demand content, according to Hans Holger Albrecht, CEO of Modern Times Group (MTG).
Speaking in a session entitled A View from the Top “Beyond Speed”, he also said that MTG’s revenues, which are currently split 50/50 between pay-TV and advertising, are increasing more in favour of the former.
Mike Fries, CEO Liberty Global, meanwhile said that he had “never seen a new product” make so much business sense in terms of CAPEX as ultra –fast internet access. With the cost of upping speeds from 8 Mbps to 100 Mbps in the region of $15-20 (€11.1-14.8 ) per household, “the rate of return is phenomenal”.
What is more, ARPU is only half the story, especially if volume is added, and there has been a ‘halo effect on everything else we do.”
Fries also said that he expects Liberty Global to go “quickly down the path” in seeking mobile broadband capability. There is a need for scale, which the company would probably find in countries such as Chile, Belgium and The Netherlands.