[opendtv] Re: Broadcasters, Cable Spar over Retrans

  • From: Albert Manfredi <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Sat, 18 Jun 2011 19:27:16 -0400

Craig Birkmaier wrote:

 

>> That's the price the broadcaster who switches over from "must carry"

>> to "retrans consent" should be ready to pay, is what I'm saying. It's

>> up to the MVPD to make that threat stick, though, and they can do so

>> entirely on their own.

>

> Not really. As I explained, the stations WANT to be in both the

> lifeline and extended basic tiers so they can get paid for EVERY cable

> subscriber. As long as subscribers cannot opt out of a channel this

> situation is only going to get worse.

 

The stations can want whatever. Will the conglom or station complain to the FCC 
that the cable system wants to allow subscribers to pay a la carte, when they 
are using retrans consent? It's entirely the MVPD's right to do so. And at 
least the last FCC supported a la carte ideas. So congloms and broadcasters 
would have no grounds to complain.

 

Or perhaps the cable systems don't mind that subscribers are cutting the cord?

 

> Yes, we are talking about ANOTHER oligopoly here, which is keeping the

> price of broadband higher than would exist in a competitive marketplace.

 

> Where we are seeing blocking or rate hikes is with content companies

> blocking certain devices, and bulks wide area service providers raising

> fees or adding surcharges to a provider like Netflix.

 

Yes, exactly. Both the content sources and the ISPs are flexing their muscles, 
and there's no reason to believe that will end. We need more competition in 
this area, if net neutrality is to be expected in the future (without FCC 
intervention).

 

> As long as the politicians and the regulators keep propping up these

> oligopolies,

 

The politicians have allowed multiple cell phone carriers to compete, Craig. 
And wrt MVPDs, the politicians allow either "must carry" or "retrans consent." 
So I don't think they can be blamed for any of this.

 

In principle, with 4G coming on line, we could get the kind of broadband 
provider competition we need. And for the MVPD fee hike issue, MVPDs are the 
ones who should be making the next move. Existing rules allow this. So the 
government doesn't have to do anything to make things right. It's the service 
providers who have the next move, and it's their customers who should be doing 
more cord cutting to motivate these service providers.

 

> The government could change everything with a simple piece of legislation.

> Require all subscriber fees to be itemized on your cable or DBS bill.

 

Perhaps. That would help accelerate what I'm suggesting. It would get consumers 
off their complacent butts sooner, cut the cord sooner, and finally make the 
MVPDs let market forces work.

 

Bert

                                           
 
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