Facebook and Google, rather than Netflix, are the real disruptors when it comes to pay-TV.
Speaking in a panel discussion examining changes in TV consumption, Gordon Castle, VP, head of industry area Mediacom, said that the reason for this was that unlike Netflix they could recommend anything. He also pointed out that one figure that is rarely mentioned when it came to Netflix was the high level of churn for the service.
Meanwhile, James Alexander, strategy and proposition director, Now TV, said that the situation in the US was quite different to that in the UK, where Netflix, certainly by Now TV, is not seen as a competitor.
The panelists expressed differing views on whether or not mobile is now the first screen. While Castle pointed out that 61% of overall viewing by young people was now on mobiles, Alexander said Sky offers the same service on all devices and every metric from its perspective was better on the big screen.
Several panelists expressed the view that advertising has to evolve. Niko Waesche, global industry head, media and entertainment, GfK, gave the recent example of Germany’s Pro Sieben buying a dating site as a sign of diversification of revenue streams and the need for more advertising innovation.
Castle agreed that the ad model has to evolve, while Alexander maintained that advertising would get smarter and more efficient.
