CNBC Live Video Interview - Shahid Khan discusses the iPad digital dogfight


Eyeballs to iPads

Shahid Khan, Mediamorph CEO, discusses network vs. cable company battles and the future of new media on "Power Lunch" with Sue Herera, Tyler Mathisen and Michelle Caruso-Cabrera. A look at who wins and who loses in the digital dogfight with Porter Bibb, MediaTech Capital Partners, and Shahid Khan, MediaMorph chairman. (CNBC)



Overview

Shahid Khan's take...

- Content is still king
- Distributors let consumers consume
- Don't fight new media, monetize it!
- Top legal battle Verizon vs. cable companies
- Broadcasters reap affilate windfall
- Retransmission fees big revenue source
- Top pick: Amazon

"All the cable networks, such as Viacom and Time Warner, they get about $30 - $32 billion from cable companies in affiliate fees," says Khan. "I don't think they should be fighting. I think they should be working with them to figure out how they can all make money and survive and grow together."

"Historically, media companies have always resisted new business models," says Khan. "Eventually they've found out how to make money on every single new technology that's out there."

"I think Amazon is the big winner for multiple reasons. First, they have technological superiority compared to Netflix. Second, they own every single form of media - they're doing ebooks, they're doing music, they're doing movies, and they're also, with Amazon Prime, getting into the subscription model," says Khan. "I think in terms of cloud-based offerings, which is where people can own their content and put them in the virtual cloud, Netflix is not that superior compared to Amazon."

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