[opendtv] Re: Broadcasters, Cable Spar over Retrans

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 8 Jun 2011 16:13:15 -0500

Craig Birkmaier wrote:

> No it's BAD.
>
> Ther only reason that it is possible to generate higher than average profits
> is that they have an protected oligopoly, and now a second revenue stream
> from competitors.

No, it's simply not. You seem to have lost the thread.

First, there are multiple congloms, competing against one another.

Second, in every case, these congloms make their premium material available 
FOTA. And have not even indicated that they will stop doing so.

And thirdly, the MVPDs have it in their power, any time they choose, to 
unshackle their subscribers. And by so doing, to give back to the congloms more 
precisely what is their due. Giving them far less leverage in manufacturing 
overly high rates.

The failure in the overall business model is caused by the anti-competitive 
nature of MVPDs, not by the demands of the content owners.

And by the way, Apple's high prices are similarly afflicted by this walled 
garden model, closed ecosystem, which reduces the beneficial effects of 
competition. It's amazing to me that you can continue to be so inconsistent.

> The proposal is to take the money the telcos spend for spectrum and give a
> sizeable portion of it to broadcasters who are willing to give up their
> spectrum. They are not handing anything over; WE will pay through the nose
> for this spectrum as the telcos will pass these costs to consumers.

Let me explain it more explicitly, then. The Feds, in an appearance of being in 
the pockets of the greediest of the greediest companies, want to yank back 
spectrum from FOTA broadcasting to hand it to companies that not only have a 
habit of charging rapidly increasing monthly fees, but also of working hard to 
freeze out any competition. Through what appears to be underhanded deals (such 
as GM wrt satellite radio, or CE vendors who seem to do everything to favor 
MVPDs, in the US).

Given that this TV spectrum is hardly ideal for the purposes the FCC is 
trumpeting, it's hard to overlook how the Feds kindly handing over the FOTA 
spectrum to the greediest of greediest does NOT have an appearance of fishy 
business.

And sure, the clueless consumers seem happy to oblige. I've said that 
innumerable times, Craig. Who do you think pays ultimately?

Bert

 
 
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