Slashdot Mirror


Cable Exec Suggests Changing Consumer Behavior, Not Business Model

Techdirt has pointed out yet another cable exec that just doesn't quite get it. Comcast's COO, Steve Burke, recently urged the TV industry to find ways to "get consumers to change" rather than figure out better methods to cater to demand. "'An entire generation is growing up, if we don't figure out how to change that behavior so it respects copyright and subscription revenue on the part of distributors, we're going to wake up and see cord cutting.' How many consumers, in any market, are focused on 'respecting' vendors' revenue streams? How, exactly, does he propose to effect this sea change? And why not just develop products that consumers will willingly pay for, rather than trying to change consumer behavior in such a fundamental way?"

27 of 675 comments (clear)

  1. dinero by digitalsushi · · Score: 5, Insightful

    If I was making 2.2 million dollars a year salary I would probably say exactly what my bosses wanted to hear, too.

    --
    slashdot: where everyone yells sarcastic metaphors to themselves to understand the issue
  2. Just release TV shows for free by Anonymous Coward · · Score: 5, Funny

    And make your money on touring.

    1. Re:Just release TV shows for free by Kethinov · · Score: 5, Insightful

      Just release TV shows for free

      And make your money on touring.

      Hardy har, so funny. Or maybe instead they could make their money the way broadcast television has successfully done so for longer than most of us have been alive? Hint: advertising does actually work. Then just offer a subscription service to folks who don't want to see ads. Easy as pie. Shame the cable companies are too busy double dipping (subscription AND ads) to realize consumers hate it.

      --
      You're right, I wouldn't steal a car. But if it were possible, I sure as hell would download one!
    2. Re:Just release TV shows for free by killmenow · · Score: 5, Interesting

      But advertising does work, period. Not all ads work. But in general, companies pay billions of dollars to advertise because it makes them billions more. If it didn't, advertising wouldn't be a multi-billion-dollar industry. Even people with DVRs are not fast forwarding through commercials as much as producers and advertisers feared. Now, there's no guarantee people are watching those commercials. My twelve year old daughter likes for me to mute the commercials and we take turns making up our own audio. It's usually a lot of "look at this car. isn't it a cool car. it costs more than you can afford. Look at it drive in ways you can't safely drive. it's an awesome car you can't have...and here's a cute girl...sell everything you own and buy our car."

      I'm always at a loss for what to say when the Cialis commercials come on.

  3. How stupid can he possibly be? by winkydink · · Score: 5, Interesting

    Ask any IT professional what's the hardest thing to change?

    User behavior.

    Technology is supposed to make out lives easier, not the other way around.

    --

    "I'd rather be a lightning rod than a seismometer." -Ken Kesey

    1. Re:How stupid can he possibly be? by Anonymous Coward · · Score: 5, Funny

      Ask any IT professional what's the hardest thing to change?

      User behavior.

      Well, in my experience, I've found that really depends on how hard you hit them.

  4. Entitlement by sqrt(2) · · Score: 5, Insightful

    The sense of entitlement is sickening. No business has a right to make profit, and I certainly don't have to "recpect" their revenue stream. This generation grew up wanting certain things, the dinosaurs in the content industries refused to adapt and now people are used to getting music, movies, and games they want for free. There are now millions of people who will go their entire lives without purchasing much content, and they were created by the greed and incompetence of the RIAA/MPAA and friends.

    --
    If you build it, nerds will come. Soylentnews.org
    1. Re:Entitlement by AcidPenguin9873 · · Score: 5, Insightful

      Entitlement goes both ways. The entire generation you speak of feels entitled to enjoy free content because its *distribution cost* and *replication cost* is $0. The creation cost for the content has always been, and will always be, non-zero, but it was always amortized into the distribution cost. Distribution via broadcasting always brought in advertising revenue, which covered all the costs. Distribution via BitTorrent brings in $0 in revenue and covers no costs. [1]

      This generation grew up wanting certain things, the dinosaurs in the content industries refused to adapt and now people are used to getting music, movies, and games they want for free.

      I disagree. There is iTunes/Amazon for music, Hulu for TV (*even* if they go to a subscription model), Netflix on demand for movies. I would say lots of good content is now available on-demand, via the Internet, pretty easy to get to. The business models weren't going to change in the one year that Napster came out. It's taken 10 years. But it has happened. The only thing that hasn't happened is content creators giving away stuff for $0, and if these creators are going to stay in business, I don't see how that's ever going to happen.

      Look, everyone here can make up plenty of reasons for why they deserve free content, but in a capitalist economy I have yet to hear a single good one. "Live performance" isn't good enough. Many TV shows that I enjoy can't be live. Software developers should *not* have to go on speaking tours to make money, like that ridiculous study out of Harvard said they should. I do not want to go to a book reading.

      [1] As an aside, I fully support the notion that *distributors* should get much less of the money. They are just a pipe, a utility for the content creators to sell their content. No one on Slashdot ever wants to make the distinction between distributors, who are invariably big media conglomerates that are easy to hate, and content creators, who might be a team of talented writers and actors and filmmakers that actually produce enjoyable stuff.

  5. Re: say exactly what my bosses wanted to hear by An+anonymous+Frank · · Score: 5, Funny

    I hereby declare that I'm willing to do exactly this for half that price!
    Any takers?

    Hello?!

  6. Perspective by Anonymous Coward · · Score: 5, Insightful

    And why not just develop products that consumers will willingly pay for, rather than trying to change consumer behavior in such a fundamental way?"

    Because he feels the same way you do. You don't seem at all eager to adapt your behavior to the terms on which products are being marketed. You instead want to force the providers to change.

    So, you don't want to change, you just want to do things your way and force others to change. The provider also doesn't want to change. They want to do things their way and force you to change.

    Both parties want to give little and receive much. Consumers want to pay little and get lots of high quality content. Providers want to expend few resources in content provision and receive lots of money.

    I'd say the two groups are more alike than different. One just has more members than the other.

    1. Re:Perspective by camperdave · · Score: 5, Insightful

      Perhaps you're forgetting the fundamental law of free markets: The customer is always right. If the bulk of customers want X and you offer Y, then don't be surprised when some other vendor comes along offering X and winds up with all the customers. As the vendor, you either offer what the customer wants, at the price they want it, or you go out of business.

      --
      When our name is on the back of your car, we're behind you all the way!
    2. Re:Perspective by whoever57 · · Score: 5, Insightful

      Because he feels the same way you do. You don't seem at all eager to adapt your behavior to the terms on which products are being marketed. You instead want to force the providers to change.

      Yes, I do expect the providers to change.

      I, and other customers have something Comcast needs: subscription revenue. In order to obtain that revenue Comcast must provide something of value to me. If Comcast wants me to change my behavior, it has to provide a compelling reason for the change. Comcast must provide some benefit to me to induce my change of behavior.

      This exec shows no inclination of providing any benefit in return for any change of behavior, so why should I (and millions of other customers) change our behavior?

      --
      The real "Libtards" are the Libertarians!
    3. Re:Perspective by zzsmirkzz · · Score: 5, Interesting

      You should check out Transformers 2 on Blu-Ray. I was completely and utterly shocked to see the disk go straight to the movie when popped-in. No FBI warning, no previews, no commercials, no menu, just the movie, starting to play automatically. It was awesome. Now to get all future movies designed in this very way.

    4. Re:Perspective by eln · · Score: 5, Funny

      You should check out Transformers 2 on Blu-Ray. I was completely and utterly shocked to see the disk go straight to the movie when popped-in. No FBI warning, no previews, no commercials, no menu, just the movie, starting to play automatically. It was awesome.

      The proper way for your Blu-Ray player to handle a Transformers 2 disc is to eject it immediately at high velocity, causing it to shatter on the opposite wall. That would have been much better than jumping straight to the movie.

    5. Re:Perspective by TubeSteak · · Score: 5, Informative

      Did any of you click through to the original article being quoted?
      http://www.broadcastingcable.com/article/366272-CTAM_Summit_2009_Comcast_s_Burke_Tells_TV_Biz_To_Help_Stop_Cord_Cutting.php

      The context of his comments is online video.
      Comcast is worried that people will ditch cable for streaming tv/video.
      What he really wants is Comcast Cable on the web.
      Keeping the subscribers but moving eyeballs (and ad dollars) to the web.

      They call it "TV Everywhere" and there was apparently a press conference about it in June:
      The top google result: http://newteevee.com/2009/06/23/what-you-need-to-know-about-tv-everywhere/

      --
      [Fuck Beta]
      o0t!
    6. Re:Perspective by Jason+Levine · · Score: 5, Insightful

      I think you missed the memo. The new fundamental law of free markets is: If the bulk of customers want X and you offer Y, then you lobby the government to make X illegal and raise the price of Y. Then you complain to your bought and paid for government officials that Y is still not selling and you need more power to force consumers to buy Y and raise the penalties on purchasing, owning, or even thinking about X. After all, customers' refusal to buy Y clearly indicates that they are all buying X illegally and the only reason for a customer's existence is to funnel money into your pockets.

      (The sad thing is, this could be modded as Funny or Insightful and either would be true.)

      --
      My sci-fi novel, Ghost Thief, is now available from Amazon.com.
    7. Re:Perspective by commodore64_love · · Score: 5, Informative

      >>>Keeping the subscribers but moving eyeballs to the [Cable subscribers] web.

      Comcast, Cox, and Time-Warner are all working on this together. Their ultimate goal is to remove the free videos from scifi.com, abcfamily.com, tnt.com, and other cable websites to a central location that is locked behind a wall. No more free rides for us non-cable subscribers.

      QUOTE: "TV Everywhere is an authentication system whereby certain premium content (TV shows, movies, etc.) are available online -- but only if you can prove that you have a subscription to a multiservice operator (e.g. cable, satellite, telco TV)..... Cable companies pay big chunks of money to cable networks (USA, MTV, FX) to carry their programming. Comcast and its ilk are none too happy when these networks then turn around and put said content on the Internet for free."

      So basically slashdotters are correct to be suspicious of this guy's "change consumer habits" statement.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
  7. Crap article, again. by NotBornYesterday · · Score: 5, Informative

    I was all ready to pop out a funny, pithy comment like "Cable Consumer Suggests Changing Cable Exec", but decided to RTFA (yeah, stupid me, here, let me turn in my geek card ...), when I realized that it's just a bunch of manufactured hype. The Techdirt article that the Slashdot article is based on is based on is a piece of crap. Here's a link to the original article rather than the Techdirt regurgitation.

    I get the feeling this guy is being quoted somewhat out of context. Techdirt goes on a rant about how the cable companies need to develop new business models, not just beat up consumers. From a quick glance at the www.broadcastingcable.com article, it appears that he's saying that if cable doesn't evolve their business models, they'll bet run over by internet-based content providers. The original article discussed targeted ad content and better-than-Nielsen viewing measurement as future directions cable could move in to improve their business model. So, yeah, the Techdirt guy has his head up his ass.

    Now, with that being said, I'm sure that whatever "new" business models the cable companies dream up will largely consist of overcharging consumers, providing crappy service, and extending DRM tentacles into everything they touch, and hence won't really be seen as a win here on Slashdot, and certainly won't be all that different from their current customer abuse.

    --
    I prefer rogues to imbeciles because they sometimes take a rest.
  8. Re:WE must change? by Bill,+Shooter+of+Bul · · Score: 5, Interesting

    I would have modded the story a troll, if possible. There are two ways of looking at things that are not contradictory. Changing business plans and changing consumer behavior. While he is proposing to change consumer behavior, obviously the only way he has to do that is through their product line up ( ie changing his business model). Like the whole super sizing of popcorn at movie theaters. its 4.59 for small (8 oz), 4.75 for a medium (12 oz), or 4.80 for a large(24 oz). The product is set up to sell a large volume of popcorn. If he made all sizes an equal price per oz, then that would likely change consumer behavior towards buying smaller sizes of popcorn. In fact the current model was designed to get people to buy popcorn at a high price, but think of it as a value. Tricky, huh.

    So the business model will most definitely change, but most likely not in a way that will make any of us ( with brains ) happy. Then agian, I don't watch tv much. Already pulled that plug a while ago.

    --
    Well.. maybe. Or Maybe not. But Definitely not sort of.
  9. Re:It's way too late for change by ObsessiveMathsFreak · · Score: 5, Interesting

    I lived in a house for a year with six other 18-25 year olds.

    We had no TV.

    Well, we did have a TV, but you couldn't watch TV on it. It was rigged up to a PS3, Xbox, Wii, and when neccessary, laptops. We played games, watched downloaded films and TV shows, the odd youtube video, in fact on occasion and actual webpage. We'd get a hanking for a show, say Heroes, we'd download the whole thing in one slurp at watch it all. Come Halloween, it was Friday 13th marathon(Do not watch 4). The TV was not even rigged up to terrestrial channels. If I'd been so inclined, I would have set up a central server we could have all thrown our movies, etc onto. Bit of a missed opportunity now that I think of it.

    I can actually remember sitting down to watch TV for a fews hours, or waiting for a good show to come on that evening, and I swear its like I'm remembering a past life. The idea to me now, of sitting down to watch TV for more than a half hour, sitting through all those ads, actually making my leisure time fit someones else schedule; this idea is by now a completely foreign notion. I cannot imagine doing it anymore, and I don't.

    It's going to be very difficult to explain to the generation currently growing up exactly how we managed to waste so much time in front of the TV. If they see what we had to put up with, they're just never going to believe it. When the time comes, and they are asked to stump up $50 a month for such garbage, they are literally going to laugh in the face of the likes of Comcast. The notion of TV itself will be absurd to them, let alone paying for it. It will be as absurd to them as those old 1950's informational shorts are to us now.

    This business model has perhaps, 20 years before the bottom falls out, and this article shows that the know it.

    --
    May the Maths Be with you!
  10. Re: say exactly what my bosses wanted to hear by shakuni · · Score: 5, Funny

    the arrogance of the tech community at slashdot it quite astounding.. what makes you think you can really do whatever he does at half the price... I am not saying that this guy is great shakes but being the COO of a multi-billion dollar company is not an easy job at all and takes very different skills from being a tech whiz. Have you carried any revenue targets ever in your life ? This post has been marked funny but it is time that slashdotters understand that running a business is tough.

  11. Re: say exactly what my bosses wanted to hear by BitZtream · · Score: 5, Informative

    Some of us have done what he does, for 5-10% of his price. Beyond a certain point in the size of a business your actual roll, responsibilities and work load no longer increase, you delegate. Since he doesn't actually assume more responsibility by working at a larger company, then yes, some of us are capable.

    It may be different if he was somehow going to be held to a higher standard, but he isn't, its just the opposite actually. If he fails, he will get treated no differently than I would. Actually thats not true, he has a golden parachute and someone else would be more than happy to hire him elsewhere, ignoring his failure, because he 'knows people'.

    Being the COO of a multi-billion dollar company is no different than being the COO from a multi-million dollar company, contrary to what you would expect.

    --
    Persistent Volume manager for Kubernetes - https://github.com/dwimsey/openshift-pvmanager
  12. Re: say exactly what my bosses wanted to hear by dgatwood · · Score: 5, Interesting

    Easier, even. With a multi-million-dollar company, it's small enough that if you screw up, you might bankrupt the company. That means that you have to be at least moderately familiar with what's going on in the company. With a multi-billion-dollar company, you have a dozen divisions that are each multi-million-dollar companies, each run by someone who has to think the same way.

    Up a tier, however, the management of each division is left to the VP for the division. Half the time, the CEO doesn't even know what the company makes. It really doesn't matter at that level. They just have to know enough to understand what the VP means when they ask the VP why the division is losing money and when they expect to get back on track, or at least enough to know if they're getting a snow job from their underlings....

    Tell you what, put me in charge of such a cable company at 10% of this clown's salary. I'll show you how it's done. The right fix for cable companies is to tear down about ten layers of management between the top brass and the people who know what's going on, spend money on building out data infrastructure further, and finding new services to offer that make your offerings more attractive. I have many ideas for new services that I'd roll out if I were running a cable company, any one of which would make a huge difference in users' lives and would significantly cut down on piracy by doing so. Of course, the notion of piracy when you have a cable signal coming in at a flat rate is absurd anyway, and always has been....

    --

    Check out my sci-fi/humor trilogy at PatriotsBooks.

  13. Re: say exactly what my bosses wanted to hear by Anonymous Coward · · Score: 5, Insightful

    The arrogance of the business community is far worse. How can anyone honestly believe someones skills could be worth 2.2 million per year? Are his skills really that rare? Or maybe it's because big business leadership is an exclusive club where friends reward friends with huge sums of money?

  14. Re: say exactly what my bosses wanted to hear by david_thornley · · Score: 5, Funny

    I assure you I could run a multi-billion dollar company at least as well as some CEOs have in the past few years (I could manage to put it into a steep decline, not a precipitous one), and I'd charge less.

    --
    "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
  15. Re: say exactly what my bosses wanted to hear by Maxo-Texas · · Score: 5, Interesting

    Shakani,
    In china, there are 1,200 equally qualified people to the executive in question. With such a gross oversupply of talent, the only reason we are paying these bozo's extra is that the current shareholder laws have removed all shareholder power to do anything about it.

    Likewise, with regard to the article, there is an *ENORMOUS* amount of entertainment. This presents two problems for the potential consumer.

    a) Most of us are able to spend, maybe, $200 to $400 a month on entertainment. Filling an Ipod would take $10,000. Do the math. Consumers are not going to cripple their life to fill an ipod. They will find a way around that price point. Once they *lose* the songs on the ipod and are asked to lay down ANOTHER $10,000 for the same songs- they get really pissy. yet this is the primary goal of the entertainment industry- rental payments anytime you use any entertainment until "forever-- less one day".

    b) On the flip side, the sheer amount of entertainment is exploding. I spent 3 hours the other night just watching homemade stuff for free on Youtube. And there were a couple hours spent watching Star Wreck. There are cable stations with real programs, there are multiple real programs, which I'll never see. I ruthlessly trade down to less expensive entertainment and, in many cases, simply wait 6 to 8 months and get the same entertainment for pennies legally. The price of entertainment is not supportable-- too many people want our entertainment dollar.

    --
    She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
  16. Re: say exactly what my bosses wanted to hear by PitaBred · · Score: 5, Insightful

    That's why you go to Harvard or Princeton or Yale. It's not for the education. It's for the contacts.