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Free porn is putting a dent in Time Warner’s wallet

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Time Warner Cable

Porn is something you wouldn’t think a cable company CEO would talk about. Even though porn brings in a lot of extra dollars, it’s one of those things that is too taboo for a lot of people. Interestingly enough, Time Warner’s CEO Glen Britt mentioned the demand (or lack thereof) for porn when discussing his company’s video on demand service during the companies Q2 2011 earnings conference call.

Britt responded to a question regarding the decline in Time Warner’s video on demand service. He was asked if Netflix growth was somehow responsible for the drop in video on demand revenue. Britt didn’t mention Netflix as a concern, but he did say that people aren’t buying porn like they used to.

“One of the things going on in VOD is there’s been a fairly steady trends over some time period now for adult to go down, largely because there’s that kind of material available on the Internet for free. And that’s pretty high margin.”

Time Warner’s chief operating officer Robert Marcus followed up by saying adult content made up about a third of video on demand’s decline. The other reason for the decline was the lack of a big sporting event and fewer movie purchases. Marcus didn’t mention Netflix by name, but he didn’t rule out its potential effects on Time Warner.

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