[opendtv] Re: A Perfect Storm Hits Media Businesses
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 2 Sep 2009 10:43:15 -0400
Tom Barry wrote:
> Once broadcasters had a monopoly on distribution of video into
> homes. And the networks eventually controlled much of the
> content. This was not because their content was good but
> because they controlled distribution. Much of the monopoly
> over Internet distribution is moving to the telcos and cablecos.
> But maybe we would not want them to also get a monopoly on
> content just because they control the pipes.
The FCC national caps do not differentiate between a company that owns
the pipes alone and a company that owns content and pipes. And I think
that makes sense.
Whether NBC is allowed to own enough towers to cover 100 percent of the
nation, or whether Sinclair is allowed this, either of those companies'
decisions could affect what everyone gets to see. (Well, except that
there are also local caps.)
I don't know when the national caps took effect, but ever since then,
the TV networks have not, at least not directly, controlled the OTA
pipes entirely. Right? Except through the affiliate agreements.
I would argue that ever since the national caps have existed, the value
of network content has been clear. A broadcast station not affiliated
with a network has been having a very hard time remaining competitive
because of that, not true? Like KRON? Content must matter.
The situation with telcos, cellcos and cable companies SHOULD be
identical to the OTA situation. If any one company controls all the
pipes, even if they do not own any of the content, they can control what
everyone gets to see.
In short, I think TV network content remains in high demand because it
tends to be what the masses want to see. Even with all the competition
out there now. And ownership of pipes is also a factor, but I think
that's an orthogonal discussion.
Bert
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