Will Content Fees Signal End of Traditional TV?

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Aug. 1 (Bloomberg) -- Leo Hindery, founder at Intermedia Partners and Alan Patricof, founder at Greycroft discuss the battle over broadcast fees and how that plays into the future of distribution through broadcast and cable TV. They speak on Bloomberg Television's "Bloomberg Surveillance."

Take advantage?

Cbs has got the ratings, among the big nets.

It is the top rated network, so it will be the most obvious beneficiary, the more interesting battle is can it position itself to attract these retransmission fees that are at the core of the time warner debate?

It wants to dollars per subscriber per month for just the cbs network.

Not the family.

Should it get that?

If it does, every woman or man in manhattan will be paying roughly $18 because you will have to extrapolate to the other broadcasters.

So just for the broadcast packet, you would be paying $18 to $20. alan, is content asking a dead concept?

No, i think it is more prevalent today than it has ever been.

And our field come of the venture world, nobody touched content until the last several years everything is about content.

You saw a company called awesomeness, which just so let a very big price to dreamworks.

All about confidence.

Russell simmons is talking about bring out a whole new network for the urban markets, contents.

That is what "huffington post" is all about.

Does mainstream media play in its five years from now, will it be a new mainstream media?

That is a tough one.

I don't think mainstream media is going away.

People -- the big screen still prevails in a lot of homes.

I think a lot of people will be perhaps going for that second screen and moving it up to a first screen as a long-term basis to watch because you can't beat a bigger picture in the long run of really seeing what good content is.

There is a lot of change, and the landscape is transforming quickly.

Leo, what you see as the next big deal in media, the next big m&a deal, what kind of companies will it involve?

John malone is suggesting a consolidation in the distribution world of cable.

I think john is correct.

There will be some movement, wetherbee cablevision, time warner cable, charter -- they will play around.

Let me follow up quickly because i think you did a nice lead -- you said sony's earnings are back, the tv division of comeback.

Content is king, it is just a different gang every day.

This is a world that was built on creditability and sustainability.

Content by definition is the hit of the day.

It is the taste business.

So to understand the economics in the old model, you have to anticipate or realize sustainability and predict ability -- predict ability.

Sony had none of that.

If content is king , the thing that is changing at the media.

And necklaces rising, hulu is rising.

-- and netflix is rising, hulu is rising.

Alternative ways of watching television.

Perhaps there is a world where they can all work together.

Listen, streaming is where the action is going.

We will see everything stream.

More and more people are going to have rococo -- roku, apple tv, and through that they will access a lot of -- is that a threat to mediate?

Lec have opera see in that -- don't you see hypocrisy in that?

I want to stream away from that -- milk it why he can.

I want to have my cake and eat twice as much on the other hand.

Leo is right.

They cannot afford to do that.

We will have to leave it there.

Alan patrickof, dy.

This text has been automatically generated. It may not be 100% accurate.


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