BT’s huge outlay on TV sports rights is disruptive but highly rational, according to Henrik Karlberg, director of pay-TV, TalkTalk TV.
Speaking in the opening panel discussion at the Digital TV World Summit, he added that its main objective had been to reduce churn and that Sky, having been challenged, would fight back.
Karlberg said that increased spend on content was generally being used an anti-churn rather than revenue driver. In the case of TalkTalk, it was also using second screen mainly as a retention tool.
Furthermore, it also has a strategy of bringing big brands onto its (open) platform and using a revenue share model.
It would be difficult to build its own OTT service.
Rights are also a major issue and ultimately they also pay back in terms of anti-churn rather than additional revenue.
Sig Møller Christensen, VP, pay-TV and distribution, TV2, meanwhile said that its OTT service had grown its subscriber by 60% this year.
Commenting on Netflix, he added that it was now competing more with TV channels than pay-TV in Denmark.
Oliver Lewis, senior VP customer propositions, Sky Deutschland, said that with respect to OTT the company’s focus was on Sky Go.
