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Consumer Experience Drives Content Delivery

By Walter Schoenknecht, April 14, 2010

Thomas Gewecke (right) and Levi Shapiro

Ask Warner Bros. Digital Distribution President Thomas Gewecke about the forecast for Hollywood and he’ll likely tell you, “Sunny, sunny, sunny” — at least on the digital front.

With two years under his belt as chief of WBDD, the studio’s content delivery arm, Gewecke said he’s “incredibly impressed” by the growth of digital delivery through Warner’s entertainment channels, such as downloads and video-on-demand (VOD) — both in terms of total volume delivered and the ever-increasing number of transactions.

Key to Gewecke’s sunny vision of the future is his belief in the emergence of the “digital living room,” a vision of digital convergence in which computer-downloaded entertainment counts for at least as much volume as cable, satellite and telco VOD combined with rentals such as Netflix and Redbox. “It has the potential to completely transform the entertainment experience, both for consumers and for those of us who create content,” he said.

Gewecke articulated his vision in a Tuesday afternoon NAB Show session moderated by Levi Shapiro, TMT Strategic Advisors partner. A veteran of both music and publishing industry positions, Gewecke was quick to specify his goal for Warner’s digital operations: to “expand digital consumption.”

The biggest positive change to the distribution landscape, according to Gewecke, came with the shift to the practice of releasing content to VOD outlets soon after theatrical release concluded. “We need to shape our business model to consumers’ expectations,” Gewecke said.

Asked about the role of “content aggregators” in Warner’s universe, Gewecke said, “It’s a very large marketplace, and there’s room for many different models.” Delivery through WBDD’s more than 200 worldwide partners is important, he said, but at the same time, technologies are changing so rapidly that with new avenues such as mobile applications, “there certainly are opportunities to look for content programming options that make sense for us to pursue directly.”

The long-term recipe for success is a straightforward one, according to Gewecke. “Consumers are more than happy to pay for content that meets their expectations,” he said. “It has to be available when they want it, it has to be high quality ... and our job is to make that experience great.”

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