[opendtv] Re: Local TV stations face uncertain future

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Sun, 1 Mar 2009 19:30:06 -0500

Tom Barry wrote:

> I'm probably the one that has talked most on this list of
> networks possibly going direct to premium providers over the
> last couple years. And I do believe that they could legally
> do that as affiliate contracts expire. This possibility can
> be used each time those affiliate contracts are renegotiated.

Agreed. So the question in my mind is, do the networks take this
approach because they feel they don't have any control of their OTA
distribution pipe, because of these affiliate agreements caused by the
national cap, or do the networks really not want their content on FOTA
TV, no matter how the OTA pipe is structured? In European and Aussie
Freeview systems, the networks seem interested in retaining those FOTA
TV eyeballs. Are they just lagging behind the US? Maybe.

In other words, let's not assume that the affiliate model is an absolute
must for OTA TV. Does that change anything in the networks' interest in
the FOTA network?

> A network without broadcasters is just another national content
> provider/broker competing with USA channel or other cable
> channels, albeit with slightly more current viewers and name
> recognition. And most of these other cable channels are owned
> by the same few parent companies anyway.
>
> So I don't think the networks WANT to kill OTA. They just want
> that eventuality covered and also used as a bargaining ploy.
> They want to be protected in the event OTA gradually fails but
> still have a lot (but maybe declining) of money invested in it.

It seems to me unquestionable that the networks want to be able to
compete directly with the cable nets, as just another content provider.
Why wouldn't they? Or even possibly transmit their content on the
Internet. I have no problem at all with that. They could do that, while
also having access to a FOTA medium that they control. Possibly,
evetually, when the entire country is covered by IP broadband wireless
offering lots of Mb/s to every user, the OTA pipe will be totally
obsolete. We're not there yet.

I'm also not sure about whether the mobility feature will be a big item,
but that's just one aspect of having the OTA medium.

Bert
 
 
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