[opendtv] Re: FW: USDTV Lands in Chapter 7 Bankruptcy
From: Craig Birkmaier <craig@xxxxxxxxx>
To: opendtv@xxxxxxxxxxxxx
Date: Wed, 12 Jul 2006 08:56:11 -0400
At 9:55 PM -0700 7/11/06, Dale Kelly wrote:
> USDTV LANDS IN CHAPTER 7 BANKRUPTCY
> TVNEWSDAY, JUL. 11, 2006, 4:03 PM ET
> http://www.tvnewsday.com/articles/2006/07/11/daily.4/
No surprises here. What is interesting is that=20
they are blaming several issues that I have been=20
talking about for years...
The need for broadcasters to develop a=20
competitive infrastructure for customer service=20
and billing:
> Lindsley conceded that USDTV had problems typical of all
>startups. USDTV has trouble with a new billing system and with third partie=
s
>who had been hired to install the USDTV system in subscriber homes.
Who can blame broadcasters for taking asvantage=20
of the infrastructure that cable brings to the=20
table.
> =93The overarching reason USDTV filed for bankruptcy is that t=
he
>industry did not support the initiative,=94 Lindsley said. =93I would say t=
he
>industry is paralyzed by fear of stepping out and competing with cable. I
>don=92t think the industry right now is prepared to do it.=94
Why should broadcasters compete when they can get=20
cable and DBS to do what they cannot?
Better yet, with re-trans consent broadcasters=20
can take full advantage of the infrastructure=20
that cable and DBS (and now Fios) provide, and=20
make millions in additional profits. Lindsley hit=20
the nail on the head - the broadcast industry is=20
not interested in competing with the goose that=20
laid the golden egg.
What could change this?
1. A decline in ratings to the point that=20
cable/DBS can afford NOT to pay for broadcast=20
content.
2. Cable and DBS offer the content conglomerates=20
a better deal than local broadcasters.
3. The Internet becomes the next big thing in=20
content distribution, killing the Golden Goose=20
AND the broadcasters who feast upon those Faberg=E9=20
eggs.
4. Broadcasters get together and use "their" spectrum to compete.
Regards
Craig
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