[opendtv] Re: Distribution outside of "the bundle"

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 11 Dec 2014 11:07:10 -0500

> On Dec 10, 2014, at 9:04 PM, Manfredi, Albert E 
> <albert.e.manfredi@xxxxxxxxxx> wrote:
> 
>> Case in point, Dish must now disable the Dish Hopper feature
>> for CBS owned programming, per their new licensing deal set
>> last week.
> 
> Same old problem, Craig. The monopolistic MVPD uses a proprietary technology 
> and charges monthly for usage and equipment. The perfect recipe for creating 
> problems from content owners. This is much like retrans consent demanded by 
> broadcasters, and similar to what got Aereo into hot water. Always the same 
> problem, it's a wonder why you can't predict it.

What an absurd response. The MVPD is obviously offering a feature that 
consumers like. The content owners took them to court but have not shut it 
down. SO CBS shuts it down for their content as part of their licensing deal - 
made at "the point of a gun,” after they blacked out the content people are 
paying for as part of their Dish service.

> 
> http://www.pcmag.com/article2/0,2817,2403072,00.asp
> 
> "About pricing: The Hopper is available at no cost as part of Dish Network's 
> mid-tier programming packages, and subscribers who want a lower-end 
> programming package can get the Hopper installed for $99. Each installation 
> can include up to three free Joeys for a multi-room setup. Dish charges $10 
> per month for whole-home DVR with the Hopper, and an additional $7 per month 
> for each Joey connected to a TV.”

And your point is? 

You cannot receive a DBS service without a satellite dish and STB. Most people 
lease these from the DBS service, although they can be purchased as well. 

I’m not a fan of leased STBs Bert, but the content owners have nothing to do 
with this. They have everything to do with forcing the MVPDs to carry packages 
of channels, with the ver escalating subscriber fees, and other restrictions 
like forcing DISH to disable the Hopper feature for their content.  
> 
>> Should I cut the "cord" to me electric supplier because they
>> keep increasing my rates?
> 
> You can, or you can reduce your consumption. And of course, the price you pay 
> for electricity is heavily regulated. Or are you suggesting that it's 
> increasing as fast as your TV sports addiction? If monopolies need to exist, 
> it is because there is no viable alternative, and they therefore need to be 
> heavily regulated (like utilities). If you use monopolistic media when you 
> don't need to, it's on you.

Fair enough, we can all live without a MVPD service. The fact that more than 80 
million U.S. homes subscribe to a MVPD service suggests that this is an 
important service, and that the price is tolerable. And yes, the rate of price 
increases on electricity and other utilities has been in line with the rate of 
MVPD price increases. 

As I pointed out, there ARE viable alternatives to the monopolistic model for 
electricity, as it is distributed via an interconnect grid. 
> 
>> The markets for natural gas in Florida are now open and competitive,
> 
> Craig, no matter how many times you repeat these examples, you're missing the 
> fundamental point. For these utilities, the distributed infrastructure 
> required to reach homes and businesses HAS to be restricted. You can't have 
> half a dozen or more different power, water, and gas distribution 
> infrastructures in every neighborhood.

True but irrelevant. A portion of a MVPD bill is for the infrastructure; 
another portion is for the content they carry.  For utilities that deliver a 
commodity like electricity or natural gas over an interconnect “grid,” it is 
trivially easy to separate “content and carriage,” as is demonstrated by the 
fact that this is happening in many areas of the country. If I buy the 
electricity from a different power generation company than the one that owns 
the wires serving my home, I still have to pay the carriage fees to my local 
utility.

This is very much like the Internet you love so much Bert. We both have ISP 
services from oligopolies. But you are enamored of the fact that you can access 
content from multiple providers that offer differentiated services.

> 
> Blab la bla. We've heard this a ton of times. The congloms are not the 
> monopoly. At BEST, the congloms exploit the fact that the MVPDs create local 
> monopolies. But when the congloms distribute their content over competitive 
> media, e.g. over their separate Internet sites or OTA, they do not behave 
> like a monopoly. You have a distorted view, because you use a monopolistic 
> delivery pipe.

The content congloms ARE NOT offering OTT services that undermine the oligopoly 
that they have in partnership with the MVPD oligopoly. They have ALWAYS had 
multiple middlemen who gain access to the content as its value decreases over 
time.

I wrote:
>> You may be able to watch HBO via your Verizon broadband Bert.
>> But will you Pay $15/mo for it?
> 
> How is that relevant to anything?

Because HBO is still working with the MVPDs to reach cord never like you. You 
object to paying for the bundle because it forces you to pay for stuff you 
don’t want. You seem satisfied to consume content that does not require a 
direct payment like a MVPD service or HBO. Apparently you are an Amazon Prime 
customer - did you sign up for this service to access their TV content, or was 
it for the free shipping?

> You were not understanding what a walled garden is, and I explained it.

No Bert, you have a warped view of what a walled garden is. If you pay for it 
it is behind a wall. Some gardens have exclusive content that can only be 
accessed by subscribing to that service. Some provide access to content after 
it has enjoyed an exclusive run in other gardens. But they are all behind pay 
walls.

> A walled garden is a middleman who decides for you what your content sources 
> can be and what they will cost. No such middleman need exist anymore, with 
> the Internet.

Name one OTT site that does not do this. (note that ad supported is still a 
form of payment).

Regards
Craig 
 
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