[opendtv] Re: Incentives for buying integrated DTVs
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Fri, 28 Sep 2007 15:26:44 -0400
Craig Birkmaier wrote:
> Why would broadcasters want to piss off the multichannel
> distributors, now that they can get $0.50 to $1.00 per month
> per subscriber without lifiting a finger?
>
> The alternative is to change the business model entirely so
> that they can compete and collect these fees themselves.
Well, broadcasters do have to provide programming that subscribers are
willing to pay their basic rates for, at least. So that's not "without
lifting a finger."
But it should also be possible for broadcasters to pay the cable
companies for carriage, but then they, i.e. the broadcasters and/or the
conglomerates, get all the ad revenues. The conglomerates could do this
for all of the content they provide to cable, not just the content that
is broadcast by the local stations. And these conglomerates could decide
on their own what they will also transmit OTA and what stays on
umbillical systems only.
I'm just not convinced that the cable and DBS companies would prefer
this approach. Reason being, the subscription services would lose a lot
of control. They would just become a local gatekeeper.
The advantage is that these conglomerates would have an incentive to
make better use of their OTA medium, or at least no disincentive to do
so, as they have today. The affiliated stations would more or less be
just another distribution service. The OEOs would be the one
distribution channel with no middlemen involved.
Bert
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