[opendtv] Re: Commissioner Copps on the Fox vs Cablevision dispute

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Fri, 22 Oct 2010 08:12:17 -0400

At 5:58 PM -0500 10/21/10, Manfredi, Albert E wrote:
Craig Birkmaier wrote:

So here is a perfect example of how the content oligopoly is misusing the Internet
 Bert. Just pull high value content from the Internet when you are trying to
 squeeze the MVPDs for another nickle.

Fox still transmits FOTA, I assume also in NYC. Fox still streams over the Internet, also I assume in NYC. So, how is it the content oligopoly (Fox, in this particular dispute) that is misusing the Internet??


Bert. You posted the article. Did you read it?

Not only did Fox withold its signal from Cablevision MVPD subscribers, but they also blocked Cablevision Internet subscribers from accessing Fox programming on Fox.com and Hulu.cm.

And it's not just Fox. The following story covers the Fox Cablevision dispute AND the fact that ABC, CBS and NBC are blocking access to their content via the internet, for new Google TV devices.

http://voices.washingtonpost.com/posttech/2010/10/networks_block_web_shows_from.html

Networks block shows from Google TV

Networks ABC, CBS and NBC are blocking Google TV viewers from its shows, according to Google, in a move that raises questions about how federal regulators should oversee the nascent but fast-growing market for Internet television.

"Google TV enables access to all the Web content you already get today on your phone and PC, but it is ultimately the content owner's choice to restrict their fans from accessing their content on the platform," Google said.

Google confirmed that it is in negotiations with those companies to deliver the Web versions of their shows. Logitech and Sony televisions carry Google's Internet television services, which is being sold by Best Buy.

The action, first reported by The Wall Street Journal, is sure to draw criticism from public interest groups and some federal regulators who have criticized a similar move by Fox in its fees battle with Cablevision. Last weekend, News Corp. blocked Cablevision's Internet customers from accessing Fox shows on Fox.com and Hulu.com, which it partly owns. The companies have been in a six-day stalemate over fees to retransmit Fox to Cablevision television subscribers.

Networks and movie studios have been reluctant to allow the Web-based versions of their shows to appear on new video distributors such as Google, which don't offer the same amount of advertising and subscription fees they have been getting from cable and satellite firms, analysts say.

But that is changing. Netflix has struck new deals with NBC Universal and Epix for Lionsgate and Paramount films. Hulu.com, however, has said it may go to a subscription model because it isn't making enough money from advertising to support its site.

According to Reuters, News Corp's Fox is also considering blocking access to shows on its Web site, but a decision has not yet been made, a source familiar with the matter said.

FCC Commissioner Michael Copps and Rep. Ed Markey (D-Mass.) were among federal officials who criticized a similar decision by News Corp. to block content as a violation of open-Internet guidelines at the FCC that say consumers should have access to the content of their choice on the Web.

Stifel Nicolaus analyst Rebecca Arbogast said in a note earlier this week that such episodes will garner continued concern by lawmakers and FCC officials. The FCC has asked Comcast and NBC Universal about how its merger would impact the distribution of online videos as the biggest broadband provider and a major content firm combine.

"While the issue is analytically distinct from network neutrality, it could reinforce increased scrutiny of Internet video issues, including in the content of the Comcast/NBC Universal review," she wrote.

By Cecilia Kang  | October 22, 2010; 12:30 AM ET
Categories:  Consumers, FCC, Google, Media, Online Video

Back to Bert:

If I buy an Internet-enabled TV, I would expect no collusion WHATEVER between Fox, or some independent web site, and the CE company that makes the TV set. I expect that the TV set would support access to any web site, and would support the conditional access standards that already exist.

As you can see from the story above, the Congloms are doing EXACTLY what you object to. And that is what I tried to point out in my previous post.


I just don't see why Fox would have to have the MVPD model survive at all. They can achieve the same effect without traditional MVPDs, if they so choose.

No they cannot.

Fox has properties "across the dial" on MVPD platforms.

FX
FX HD
National Geographic Channel
National Geographic Channel HD
Nat Geo WILD
SPEED
SPEED HD
Big Ten Network
Big Ten Network HD
Fox Reality Channel
FSN
19 owned-and-operated regional sports networks
FUEL TV
Fox Movie Channel
Fox Soccer Channel
Fox Soccer Plus
Fox Sports en Español/FOX Deportes
FOX College Sports (Atlantic, Central, Pacific)

Most of these are included in the extended basic tiers of MVPD systems; each delivers subscriber fee revenues and ad revenues.

It is true that Fox could offer all of these networks in a bundle for Internet subscribers; But they would have to charge a healthy fee for all, or offer them ala carte, in which case they might make less money. And then there is the reality that the MVPDs are going to survive for a long time on the strength that they are the ONLY place to get popular channels like ESPN.

And if the congloms can selectively block content via the Internet, based on your ISP or the platform you are using, as they are NOW doing, the MVPD model will survive even longer.

Which says to me, you're off base when you put all the blame on the content oligopoly.

Not all the blame. The MVPDs are equally culpable. Unfortunately, the reality is that these disputes between the MVPDs and the Congloms are all about creating the perception that one or the other is looking out for their customers. It give them cover for ever incresing rates...

Regards
Craig


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