Content Licensing Still A Hard Slog For Telcos

Operators are keen to get content onto new platforms but the licensing issues are complex, since the channel operators don’t completely own the content, they have to pay royalties to actors and producers and so on, and in a lot of cases the details weren’t anticipated in the contracts.
“Content providers are keen on getting their content onto new platforms and drive new revenue, but that doesn’t mean you can get away with open-ended statements,” Fagan said. “You’ll have to readjust the contract every time you want to add something new, and not all of them will agree. Some will flat out refuse.”
Content providers are also eager to add new content rather than just repackaging old content…”Otherwise, it’s just a me-too service.”
“Doug Miller, Asia-Pac executive VP and MD for Walt Disney International, agreed… “Putting ‘Desperate Housewives’ on iTunes is a nice story for Wall Street, but the home run is really to work with these new platforms and design new products and new ways to add value and interactivity and create a different experience for the user.”