Consumers in Golden Age of Content Delivery: Parry

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May 1 (Bloomberg) -- Roger Parry, Chairman at MSQ Partners, discusses the changing television landscape including British Sky Broadcasting earnings and what that means for consumers. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

It is reinvesting everything it makes.

What we're seeing is classic bskyb labor.

They put their revenues out.

They put a few more subscribers but their profits are going down.

The reason the profits are going down as they are investing in their own business.

They take the long-term view.

They are trying to think through what living rooms will look like in three to five years time.

Which is what investors like that because they are reinvesting and trying to look ahead which is why the stock is gaining 4.5%. what is my living room going to look like?

It is going to be completely digital?

What do i, what will i use and want?

It will be a lot more than your living room.

Sky have a project they're working on.

Rogers et -- project ether.

Your program content will live on the cloud.

Uyyou will be able to watch it in the kitchen, the vegan, the bathroom and take it with you on your tablet.

That is the way sky will become part of your life.

It will be a lot more than sitting front of the tv.

It will be an overall experience of watching content.

This is the ultimate battle ground.

U.s. companies are trying to be the all encompassing tv provider.

Who will win the game?

You have to think in this country that someone like bskyb has a really strong platform from which to attack it.

If you think about their history, they started out essentially with a monopoly of satellite distribution.

They were the only way to get satellite tv.

Nowadays, the same stuff can come through in your home to terrestrial or broadband.

What they have done, they have been a technology company.

They thought about all the issues.

They are not just a television broadcaster.

They are not just a telephone utility.

They started out from the by place.

-- the right place.

They are in a good position.

At the same time, a lot more american companies are looking at the european space.

Is convocation going to -- go high up?

We as consumers are in for golden days.

We will have a lot of opportunities thrown at us and there will be a lot of pricing pressures.

We will be able to get content cost-effectively.

We saw this country that viacom are buying channel five.

That will put a lot more pressure on channel four and itv.

It isn't just going to be that bt -- that bskyb is the giant.

Everyone is going to get pushed.

Is the ultimate winner, will they have to provide original content?

I'm thinking of netflix.

My own view is that original content is key to this.

This battle started by buying moving rights and it moved into buying sports rights.

Now it is getting into buying drama rights.

You were playing kevin spacey's trailer for the interview tonight.

You think about just what a seismic shift it is that netflix, accompany you never heard of a few years ago, is making something that has 100 episodes.

That is a tremendous investment.

It's working.

People are signing up to netflix all over the world.

That is going to be the real game changer.

Is there anything we are not real the -- realizing at th e moment?

When we look at the way we consume media.

If anyone predicting the amount we would be using?

I think people certainly thought that there would be a lot more tv channels.

I think that we probably missed is the idea that the thing on your wall is no longer a tv.

It is a screen that gives you access to a vast range of different ways of getting a hold of content.

I think the thing that will change a lot is we will more and more be lured away from the idea i am sitting down to watch the telly.

You're going to say i'm going to watch "game of thrones." you are not sam going to watch sky.

You'll save -- you are not going to say i watch sky.

It will be who brings you the

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