[opendtv] Re: FW: USDTV Lands in Chapter 7 Bankruptcy
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Wed, 12 Jul 2006 09:09:19 -0400
Reformatted without all of those crappy control characters...
At 9:55 PM -0700 7/11/06, Dale Kelly wrote:
> USDTV LANDS IN CHAPTER 7 BANKRUPTCY
> TVNEWSDAY, JUL. 11, 2006, 4:03 PM ET
> http://www.tvnewsday.com/articles/2006/07/11/daily.4/
No surprises here. What is interesting is that
they are blaming several issues that I have been
talking about for years...
The need for broadcasters to develop a
competitive infrastructure for customer service
and billing:
>Lindsley conceded that USDTV had problems typical of all
>startups. USDTV has trouble with a new billing system and with third parties
>who had been hired to install the USDTV system in subscriber homes.
Who can blame broadcasters for taking advantage
of the infrastructure that cable brings to the
table.
>"The overarching reason USDTV filed for bankruptcy is that the
>industry did not support the initiative," Lindsley said. "I would say the
>industry is paralyzed by fear of stepping out and competing with cable. I
>don't think the industry right now is prepared to do it."
Why should broadcasters compete when they can get
cable and DBS to do what they cannot?
Better yet, with re-trans consent broadcasters
can take full advantage of the infrastructure
that cable and DBS (and now Fios) provide, and
make millions in additional profits. Lindsley hit
the nail on the head - the broadcast industry is
not interested in competing with the goose that
laid the golden egg.
What could change this?
1. A decline in ratings to the point that cable/DBS can
afford NOT to pay for broadcast content.
2. Cable and DBS offer the content conglomerates
a better deal than local broadcasters.
3. The Internet becomes the next big thing in content distribution,
killing the Golden Goose AND the broadcasters who feast upon
those Faberge' eggs.
4. Broadcasters get together and use "their" spectrum to compete.
Regards
Craig
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