[opendtv] Re: Distribution outside of "the bundle"
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 10 Dec 2014 01:30:58 +0000
Craig Birkmaier wrote:
> The only thing that has changed (since 2005 is that you can buy the
> current season the day after it airs.
Which kind of tells us that your "exclusive" "the bundle" content is not
exclusive anymore, or at least, the most popular content may be becoming less
so. Except certain sports. As long as each episode costs $2, well, you could
rationalize that no one would use that option as a regular viewing option,
outside "the bundle."
> Speaking of astronomical prices, you can get analog cable (SDTV)
> WITH the extended basic tier for about $50/mo.
Sounds like a competitive price, but few people would be satisfied anymore with
analog TV images on their nice LCD TVs. Just seeing the last days of analog TV,
is my bet.
> No Bert [TVE] is absolutely relevant. It is another way to watch
> your favorite shows on YOUR schedule, on the device of YOUR
> choice, without paying more.
We've been over this, Craig. With OTA TV, you can also watch content on
whatever device you want, without paying more, so this huge new deal is kind of
lost to me. We've seen boxes that convert the OTA signal to IP streams, right?
And for VOD, the congloms already have that on the Internet.
What is not lost to me is that TVE is a scheme which "pretends" that TV content
must still be delivered by this monopolistic medium. It's a bit like the
neighborhood gasoline station trying to sell me a coupon book. I have a ton of
other gas stations I could use, but if I "invested" in that coupon book, I
would become a loyal customer of that one station. Well, come now.
> I could cut the cord and get by with Netflix and whatever is
> available free, like the stuff you watch, but I would be forced
> to give up much of what I want to watch.
You're not seeing the bigger perspective. People are cutting or shaving that
cord. People who, unlike you, are willing to find alternatives that are "good
enough," in the near term. As more such people exist, and more are existing,
the content owners, themselves, take action. Content owners deciding to make
their content available in other ways, through other sites, sometimes even just
ad supported (e.g. ESPN MLS). In short, the change in TV distribution is
happening in spite of those still-loyal MVPD subscribers. It takes THESE OTHER
consumers to make it happen, and (thankfully) they exist.
> The content congloms have adapted to evolving technology,
> sometimes with a bit of reluctance. And with each step in
> this process they have increased our options, EVEN AS
> THEY INCREASE WHAT WE PAY.
But they haven't (yet perhaps?) increased what I pay, Craig. What you pay,
sure, but only because you let them. I have no quarrel with content
conglomerates continuing to make money. None at all. They generate the content
that people want, no matter what the distribution technology might be. They
deserve to survive this transition. My beef is only with those who would limit
the distribution options we should see, and that includes device makers who
deliberately cripple their receivers.
You are having to pay more, and more and more, because you are not
demonstrating demand elasticity. Economics 101.
> Rather than debate what is driving that change, established television
> companies should change their business models, Mr. Sarandos said. As an
> example, he said that cable operators should invest in new technologies that
> would allow people to watch TV episodes weeks after they have been broadcast,
> but allow advertisers to insert up-to-date commercials.
>
> This is EXACTLY what I have been saying Bert.
And both you and he are saying something that was already possible, for MVPD
nets, and is therefore **not interesting**. VOD from within garden walls was
already available, Craig. It's the garden walls that are no longer required.
Plus, the congloms have been making their content available as VOD for YEARS
AND YEARS, Craig. So again, that VOD aspect is simply old news.
> Perhaps. But they will still be forced to buy content from walled in
> services like Netflix....
No, Craig. They will NOT be forced, and you should get this by now? If you
don't like the Netflix prices, no matter where you live, you can finds another
TV portal. And no doubt, more to come in the future (like HBO for instance). If
I can watch HBO over my neutral Verizon ADSL link, which does not offer MVPD
services, I'm watching HBO with absolutely NO MVPD affiliation. Or Hulu. Or the
congloms' own sites. Or foreign TV programs. Nothing walled in about any of
this.
Bert
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