[opendtv] Re: Barriers eroding to LCD TV adoption

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Wed, 11 Aug 2004 08:09:27 -0400

At 7:31 PM -0700 8/9/04, John Willkie wrote:
>You've got it absolutely 180 degrees out of phase with reality again, Craig.
>
>It's the cable firms that are hitching a free ride (no payment for content)
>on the output of broadcasters.  Broadcasters provide a few channels of
>locally flavored content that, in a 200 channel cable universe, still gets
>more than half the total viewership.  Isn't that called diminishing returns?

NO PAYMENT?

You've got to be kidding. Most of the major networks and their 
affiliates elect Retransmission Consent rather than must carry. There 
is compensation involved in ALL of these deals. In most cases it is 
"in-kind" rather than cash, although CBS typically has taken cash. 
NBC, ABC and Fox used Retransmission Consent to get preferred 
placement for new cable networks. This is how MSNBC, CNBC, ESPN2, and 
may other channels got established on the early '90s. Now that the 
nets have bought up most of the better cable networks, they are 
beginning to negotiate for cash for the local broadcast signals.

The cable guys are not getting a free ride. They are the collection 
agent for subscription fees for the stuff that 90% of the audience 
watches.

>The only local flavor in cable is local spots (mostly for new, expensive
>cable services) and public access.  Yeah, that's the way to establish a
>completive service.

And exclusive regional cable networks (mostly sports)
And 24/7 local news channels
And pay-per-view movies

Regards
Craig
 
 
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