/// Will News Corp. Pursue a Subscription Model? [Updated]
Chase Carey minced no words when it comes to Aereo. Addressing broadcasters gathered in Las Vegas for the annual National Association of Broadcasters convention, the News Corp. president and CEO said that if broadcasters fail to win their lawsuit against Aereo, News Corp. would pursue a subscription model and abandon its broadcast signal. “We won't just sit idle and allow our content to be actively stolen,” Carey told the NAB audience. “It is clear that the broadcast business needs a dual revenue stream from both ad and subscription to be viable. We simply cannot provide the type of quality sports, news and entertainment content that we do from an ad-supported-only business model. We have no choice but to develop business solutions that ensure we continue to remain in the driver's seat of our own destiny. One option could be converting the Fox broadcast network to a pay channel, which we would do in collaboration with both our content partners and affiliates.” Carey's threat, if carried through, could cripple the network-local station broadcast model. While that might seem an extreme solution, News Corp. isn't the only network to consider a radical solution. Soon after Carey delivered his bombshell, Univision and CBS threw their support behind Carey. Univision chairman Haim Saban offered this statement. “To serve our community, we need to protect our product and revenue streams and therefore we too are considering all our options, including converting to pay TV,” Saban said.
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Will News Corp. Pursue a Subscription Model? [Updated]