[opendtv] Re: How Do I Keep My Favorite Shows?

  • From: "Dale Kelly" <dalekelly@xxxxxxxxxxx>
  • To: "OPENDTV" <opendtv@xxxxxxxxxxxxx>
  • Date: Sat, 21 Aug 2010 09:58:45 -0700

And I noted that there's no going back to four program choices<

In our new DTV world far more channel space is available to significantly
increase that number of choices.>

The real threat is when the congloms decide to go direct with the MVPDs.<

Which they may very well do and, if you recall, I've predicted such an
intention on their part for a number of years.

BTW, checked out your Brewery web site - very impressive.

Dale



----- Original Message ----- From: "Craig Birkmaier" <craig@xxxxxxxxx>
To: <opendtv@xxxxxxxxxxxxx>
Sent: Saturday, August 21, 2010 5:06 AM
Subject: [opendtv] Re: How Do I Keep My Favorite Shows?


At 3:13 PM -0700 8/20/10, Dale Kelly wrote:
Craig wrote in reply:
It is not going to happen, but broadcasting would die rather quickly if
the MVPDs pulled the plug and broadcasters had to rely on homes with
antennas.

But, my reply was to this argument:
2. (what) If the MVPD did not exist?
The dynamic is significantly different under that scenario, clearly
viewers
would then have no source other than FOTA.

And I noted that there's no going back to four program choices...


The reality is that the MPVDs do exist and they do utilize and benefit
from
broadcast carriage. Would they not suffer significantly were they to "pull
the plug on broadcasters" and isn't that why "It is not going to happen"?
They receive fair value for these programming purchases.

It's hard to know how much they would suffer. For our household it would
not make a big difference, except for some sporting events, which are
moving away from FOTA because of the high cost for rights.

Clearly the broadcasters would suffer far more, as they would lose 90% of
the audience they have left.

It is also equally clear that Dale is right, this is not going to happen;
the MVPDs are able to pass the cost of retrans consent to the consumer.
Most of the noise they make when these deals are negotiated is to leave
the impression that they are trying to control costs and protect their
customers. However, despite re-regulation in 1992, which was passed in
part because of soaring cable rates, the cost of MVPD service has been
growing far faster than the rate of inflation.

The real threat is when the congloms decide to go direct with the MVPDs.

Regards
Craig


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