TiVo CEO: Cable should encompass over-the-top video in pay TV subscriptions
One way cable operators may be able to reduce the risk of subscribers cancelling service to rely on over-the-top video from providers such as Netflix would be to bundle access to streaming video in monthly subscription TV packages, TiVo (Nasdaq: TIVO) CEO Tom Rogers said Thursday.
"Maybe that streaming content gets encompassed in your operator's subscription going forward," Rogers said during a Q&A session at an Advertising Week event Thursday in New York.
TiVo allows user to view content from Netflix (Nasdaq: NFLX), YouTube, Pandora and other Web content suppliers through its TiVo Premiere DVR. Rogers said that the company, which pioneered DVRs, but struggled in the past to compete with generic DVRs from cable set-top vendors such as Motorola Mobility (NYSE: MMI) and Cisco--is seeing more demand for its DVRs from cable operators. The Premiere set-top is being deployed by RCN, Suddenlink Communications and other small and mid-sized operators.
"We really were rejected by the cable industry at first," Rogers said, noting that the competition cable faces from over-the-top video has seen more operators gravitate toward TiVo receivers. "We need to make sure that the cable industry encompasses over-the-top content, not that over-the-top content stands apart from it because obviously that is a threat to its existence."
Asked about the threat operators face from subscribers that cut the cord on subscription TV to rely on OTT video for home entertainment, Rogers said the broadband Internet services MSOs sell to consumers puts the industry in a strong position.
"In a world of abundant video consumption, the speed of your broadband connection is everything. So I'm quite bullish on the cable industry going forward," Rogers said.
- see video of Rogers interview