The Connected Consumer: Marketing budgets are still key in the connected TV world
The UK is "the most aggressively competitive TV market in the world," according to Decipher MD, Nigel Walley, speaking at MediaTel's Connected Consumer conference on Monday. His comment came as the panel discussed Netflix's entry into the UK VOD market.
"Netflix is competing with platforms like Virgin, BT and Sky, but not with ITV. If I was ITV, I'd take Netflix's money if they want to do a deal for ITV content. For one year, not a ten year deal."
Walley added: "It's difficult to find a consumer who is worried about first-run films. They are more likely to be turned by who is marketing most. Look at Warner's recent deal - it was with Sky. Sky is the place that will make it most famous because of its marketing budget. Netflix is not doing the same level of promotion."
Emma Scott, MD of Freesat, predicted a shakeout in the VOD market, but added to this theme. "Our new Freesat box is channel-branded. That's how people still think. The film businesses will need to do much more advertising. And more curation."
Damien Read, BT Vision's general manager of products and propositions, expected every platform to carry the main film services and re-iterated marketing budgets as a key differentiator, but he also felt recommendation had a large part to play going forward.