[opendtv] Re: Barriers eroding to LCD TV adoption

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Thu, 12 Aug 2004 07:06:48 -0400

At 4:27 AM -0700 8/11/04, John Willkie wrote:
>So, you are now asserting that broadcasting is not valuable?  Perhaps to
>you, but even that is inconsistent with your previous posting calling
>non-payments to be payments.  To bring it full circle, do you think that
>cable company are making your "payments" for something that has no value?

You are twisting my words to your purpose...unsuccessfully!

Of course the content offered by broadcasters is valuable. In and of 
itself, however, it does not have sufficient value to cause people to 
give up their multi-channel services and go back to an antenna 
(exclusively).

As I noted, the big networks once again control 90% of the audience. 
Half of this is still via the content they push through the broadcast 
networks. The other half is via the cable/DBS networks that are NOT 
available to OTA viewers.

Consumers now accept the reality that they must subscribe to a 
multichannel service to get the broad spectrum of content they want 
to watch. They also accept the reality that they must pay even more 
to watch content that is not cluttered with commercials. It is in 
this environment that broadcasters must learn to compete.

Offering a slimmed down multichannel service at a slimmed down price 
via OTA broadcasts has not proven to be successful. It is difficult 
for a 20-30 channel service to offer the 10-20 channels that YOU want 
to watch; if a slimmed down service only offers a few of the channels 
that YOU now watch, it is unlikely that you will choose to save 
$15-20 per month and give up the stuff you want to watch. You are 
still writing a check, its just a little smaller.

If, on the other hand, you can offer 20-30 advertiser supported 
channels for free, you may attract a share of the audience. This has 
proven to be the case in Germany and the UK.


>You really have no guess as to what's viable due to biases.  A rotor (or
>multinational array) is more expensive and troublesome than stringing
>hundreds of kilometers of high-grade cable, providing linear power back-up
>circuits, line amplifiers, drops, etc?

You really have no clue about the realities of consumer behavior. 
Fact is that the cable and DBS infrastructures already exist. That is 
the reality of what broadcasters must compete with TODAY.
Equally important, the cost of establishing service is not paid by 
the broadcaster; the consumer must invest in the receiver, and any 
antennas, rotors, etc. necessary to achieve reliable reception.

The standard for service today is Plug & Play. Once the cable company 
or DBS service is installed, you just pick up the remote and surf. 
Broadcasters must equal this experience if they are to be 
competitive. IF you need to play with a rotor, or move the antenna 
manually, you are not competitive.

The bottom line is obvious. The technology exists to deliver 40-50 
channels of content reliably in EVERY TV market via OTA broadcasts. 
The reality is that broadcasters "chose poorly."

Regards
Craig



 
 
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