Return of Program Exclusivity?

With telcos returning to the video marketplace, DBS continuing to take cable subs, and new media like broadband to offer more video alternatives, TW's EVP of Programming, Fred Dressler, says program exclusivity may need to be a playing card in the new distribution game.

While current law prevents exclusivity with respect to channels with even a small level of ownership by a company with cable distribution, many channels could be open to exclusivity "demands". Given the competition among content suppliers for audience, exclusivity will not look attractive. Any diminution of potential reach, whether by DBS, telco or other means, limits ability to attract regional and national advertisers at the best possible rates.

Its understandable why cable wants to offer as distinct and differentiated a product as possible. Maybe the programmer can get license fee increases and carriage commitments to merit consideration of an exclusivity grant, but changing technology and economics makes that a difficult equation to figure.

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