TV Everywhere | Page 3

tve@3108_news 01/09/2015 10:19 Page 2 Analyst: ‘Producers may pull back from Netflix espite the recent launch by major broadcasters such as HBO, Showtime, and CBS of their own standalone OTT apps, and speculation that ESPN is about to make such a move, Alan Wolk, senior analyst with TDG, has warned that 'the Great OTT Migration' isn’t happening just yet. In a Blog Post, he says there are many reasons most networks will not (and cannot) make the leap to OTT, either now or in the shortterm future. “The first reason has to do with who owns the distribution rights to the network’s programming. In most cases, it is often an outside studio. Take AMC, for example: Lionsgate owns the rights to Mad Men, while Sony owns the rights to Breaking Bad. These sorts of deals are the norm in Hollywood, as the studios develop the shows and incur the costs of winnowing D down scripts and creating pilots. And the reason they shoulder this expense? So they can then sell distribution rights to a show once it becomes a legitimate hit, raking in millions upon millions of dollars,” he notes. “The second reason OTT may not be right for broadcast and cable networks has to do to with to whom they sell those rights — online distributors like Netflix, Amazon, and Hulu. While these distribution deals can generate a great deal of income, they also limit the amount of content the network has available to populate their own freestanding app.” “This is why we’re seeing genre apps like the NBC Comedy app, Shudder (a horror app), and the SundanceNow Doc Club from AMC appear. This is the