Confrontation with online platforms such as YouTube rejected, industry players welcome experimentation in business models & new revenue opportunities

(Brussels 4 March): Cable executives and content providers today rejected the idea of a split with online content providers and discussed the role of web-based content in driving demand for greater cable bandwidth in an increasingly converging content space over multiple platforms.

"If you watch YouTube then you need KDG for the best experience. We're monetising different parts in the value chain, so really we're partners in this big explosion. Cable companies are kings of the living room, large parts of society watch our linear content. We'd love to bring them into the game and will work with a range of partners." said Manuel Cubero, COO Kabel Deutschland. "We are participating in [growth] with intelligent pipes and with DOCSIS there is no limit."

Patrick Walker, Director for video partnerships EMEA, YouTube, spoke optimistically of how cable could work with his company. "Of course we can work with cable. We already have relations with some companies who want to develop multiple business streams that can extend revenue into the web. We ourselves also need to experiment with paid services. Content via all these different services is actually driving demand for people to pay more for higher bandwidth. We need to work quickly to keep people from going to illegitimate sources."

"Business models need to adapt," said Neil Berkett, Virgin Media CEO, "but rather than risking losing the living room to web content, we have the home to gain. Cable's role as the customer's trusted agent gives us a role in helping customer move beyond the living room. We can work with the likes of HBO and YouTube to take their product from the PC to the living room to any device you want. We need to all accept that this is not a zero-sum game and work to create a profit pool that all can participate in. The ability to guide customers over different platforms will become increasingly important."

Linda Jenssen, CEO of HBO Central Europe added "Online video is something to be embraced. From a premium pay point of view, we have no desire for cable to become a dumb pipe. There's lots of work to be done. We have to make premium content with a user experience that reflects that premium pay environment. The customer has to be valued and loved."

For more information, please contact:

Gregg Svingen

Director of Communications

T: +32 2 556 21 02

M: +32 476 490 603

E: gregg.svingen@cable-europe.eu

 About Cable Europe

Cable Europe is a trade association that groups all leading broadband cable TV operators and their national associations throughout Europe. The aim of Cable Europe is to promote and defend the industry's policies and business interests at European and international levels, and to foster cooperation among its members. The European cable TV industry services more than 94 million broadband, TV and telephony subscriptions throughout the EU 27 (around 70 million households).

www.cable-europe.eu