[opendtv] Re: Local TV stations face uncertain future
- From: Albert Manfredi <albert.e.manfredi@xxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Sat, 28 Feb 2009 19:37:37 -0500
Craig Birkmaier wrote:
> I believe that one "unINTENDED consequence"
> of the DTV transition was to slowly kill the
> local OTA distribution platform, so that the
> networks could have total control over their
> content and the resulting ad revenues.
I'm not sure I understand how the networks can have "total control" of
anything, if they have to rely 100 percent on the transmission networks of a
handful of large MVPDs.
> IMHO, the "shot heard around the world" was
> the 1992 Cable Act, which gave the networks
> the retransmission consent leverage they
> needed to rebuild their empires. They knew
> that they could take over most of the prime
> cable real estate, and then off-load affiliate
> compensation onto the cable systems.
The networks do have the right to benefit when their content is transmitted
over MVPD nets. Seems to me that one possible fair way of compensating the
networks is to give ther networks 100 percent of the ad revenues for content
transmitted over MVPDs, and let the MVPD retain 100 percent of the subscription
fee revenues. That would fairly compensate the networks for the increased
viewership, and at the same time, the MVPDs are compensated for installing and
maintaining their labor-intensive infrastructures.
And Internet transmission would work in a similar way, where Internet
viewership would also get factored into the number of eyeballs figure that
advertizers need to pay the networks.
For a scheme like this to work, the networks would have to be allowed to own
their own entire nationwide OTA network, and operate it much like a nationwide
mini-MVPD, and/or they could outsource the OTA medium to an OTA net provider,
who is similarly free to operate as efficiently as possible. Isn't this very
similar to how Euro Freeview works?
Seems to me, a lot can be blamed on the overly restrictive effect of the 39
percent national cap.
> The networks would love to have the same
> freedom as HBO, Showtime, et al to include
> nudity, sex, and language that cannot be
> presented via FTA broadcasts.
I don't understand the connection. You are listing premium channels, available
only with extra monthly fees. If you compare FOTA with cable channels, you have
to compare it with the basic package. Are cable systems free to transmit sex,
nudity, etc., on their basic tier?
Bert
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