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TelcoTV: Telcos need to innovate in packaging

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ATLANTA--Telephone companies getting into the video business need to capitalize on the fact that they don’t have a history in the industry and develop packaging and pricing of video services that is different from cable, the head of Starz advised today.

Bill Myers, president and COO of Starz, made his plea at the end of a discussion of the many things Starz is doing to deliver video on multiple platforms, including broadband delivery to existing customers and short-form video for younger audiences tied to their cell phones.

Rather than simply following cable’s example and forcing consumers to buy large packages of content they don’t want, telcos can and should innovate, Myers said.

“You don’t have this history, don’t have long relationships with customers and long relationships with programmers,” he said. “You can take that content and package it and price it in a way that it is a real strong price-value relationship for the consumer. Consumers are looking for good content at the right price. You can really do that. You are new into this space, you have no baggage, no history--you can be incredibly innovative and creative, and that is one thing we would ask. We can help you with that. It’s a great opportunity for both of us.”

Myers also called on telcos to help make services easier to access. While cable and satellite offer video on demand--and Starz sells them VOD channels--many consumers don’t even know they have VOD and, if they do, find it too difficult to use.

“We need to work on ways to make it simpler,” he said.

Earlier efforts to expand viewing options, including 24-hour news channels and satellite service, have faced skepticism but ultimately succeeded, Myers said.

“I have read many times that telco video providers can’t succeed,” he said. “We feel you have a great opportunity to drive customer growth to provide great value to end consumers, and we would really like to be a part of that. We have great content, and we are very flexible on how we are going to use that content. We are trying to be ahead of the curve on how you use technology. Consumers are changing every day, and we have to be willing to change with them.”


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