Time Warner CEO Bewkes pushes cable ops to let subs watch HBO Go through Roku, connected TVs

Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC), DirecTV (Nasdaq: DTV) and other pay TV distributors should allow subscribers to access HBO Go content through Roku and other connected TV devices, Time Warner Inc. (NYSE: TWX) CEO Jeff Bewkes said Wednesday.

Bewkes

While most major MSOs let subscribers who pay $15 to $20 monthly for HBO to access the premium network's entire library of original series and movies through the HBO Go TV Everywhere website and HBO Go apps for Apple (Nasdaq: AAPL) iOS and Google (Nasdaq: GOOG) Android devices, distributors aren't allowing subscribers to access HBO Go through Roku and other connected TV devices. Bewkes said on Time Warner Cable's fourth-quarter earnings call that the industry should let subscribers access all of its subscription content on any platform for no additional charge.

"Frankly, I don't understand the reticence of distributors to authenticate on third-party sites like Roku," Bewkes said. "What's powerful about it--by authenticating TV Everywhere with whatever network you like, on all devices and platforms, cable operators would be making the video subscription they sell to consumers even more valuable. They would therefore make it much less likely that a consumer would cut the cord," he added.

Following agreements HBO struck late last year with Cablevision (NYSE: CVC) and Time Warner Cable to allow their subscribers to access HBO Go and a similar website and mobile app for Cinemax, Time Warner HBO Go deals are in place with most distributors.

It's not clear why Comcast, DirecTV and other distributors aren't allowing subscribers to access HBO Go through Roku's over-the-top video set-top and other connected TV devices. MSOs could be concerned that allowing another provider to control the interface subscribers rely on to access subscription video content through the TV could pose a threat to their core business.

Asked about offering access to HBO Go through Roku and other devices, Comcast spokesman Peter Dobrow said that the company is working to make its programming available on multiple devices. "The fact is we're working to make XfinityTV programming available to our customers in more ways including the Xbox, connected TVs, on websites like XfinityTV and HBO Go, on tablets and other devices," Dobrow said.

Bewkes also touted Time Warner's strategy of allowing consumers to access movies produced by its Warner Bros. division through the UltraViolet digital rights locker. He said all DVDs and Blu-ray discs from Warner Bros. are UltraViolet compatible.

"We're looking forward to more studios releasing more UltraViolet titles," Bewkes said.

Disney (NYSE: DIS) CEO Bob Iger wouldn't commit to using UltraViolet during his company's earnings call on Tuesday. "I'm not suggesting that we're not open minded about it, but so far, I'm not sure that it's proven to be as robust as we'd expected or as consumer friendly as we had hoped," Iger said.

Bewkes made multiplatform programming distribution a key focus of Time Warner's earnings call. Time Warner reported about $3.5 billion in revenue from its networks division in the fourth quarter of 2011, up by about $151 million from the fourth quarter of 2010. Its operating income from the networks division increased by about $240 million to $1.14 billion during the quarter.

Time Warner said it saw revenue at its networks division grow 9 percent in 2012 to $13.7 billion. It attributed the gains to a 12 percent ($453 million) jump in subscription revenue and a 21 percent ($202 million) increase in ad revenue.

For more:
- see the earnings release

Special Report: Sizing up the cable industry in Q4 2011

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