[opendtv] Re: Malone Takes Global View on Cable | Multichannel
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 2 Dec 2014 01:57:30 +0000
Craig Birkmaier wrote:
http://www.multichannel.com/malone-takes-global-view-cable/385898
> Then again, I think Malone is confirming most of what I have
> been saying, especially this part:
> "The industry also has struggled with the issue of rising content costs. On
> that front, Malone said the linear approach - in which distributors bundle
> desirable programming into a package they hope will be profitable and doesn't
> cost so much that viewers will defect - would eventually go away.
> "'I predict that that model will change over time,' he said. 'In some cases,
> it will change with the cooperation and involvement of the distributor,
> particularly as you make the change from linear to random-access.'"
Thanks for finding this article, dated today I should add. But honestly, it's
surprising that Craig thinks he's been saying this all along?
What Malone is telling us, Craig, is that the high and increasing price of
*sports* is spelling the death of this "the bundle" model. He is saying that
"the bundle" programming will instead be made available on demand, separately.
This is what "I predict that that model will change over time ..." means,
Craig. You will note, he is NOT saying that content from "the bundle" will
never be made available outside "the bundle."
Read this:
"'I think you're seeing increasing friction because of the price pressure on
content,' Malone said. 'So much of the oxygen has been taken out of the room by
sports and the rising cost of sports that it's putting pressure on distributors
who are trying to control costs wherever they can and are likely to put more
pressure back on the weaker suppliers than the ones they would like to
retaliate [against], but they can't.'"
And,
"If 80% of the incremental price pass-through is going to the sports supplier,
there is very little room for inflation or budgetary increases for the
non-sports-driven."
What is not explained clearly here is that the alternative to "the bundle" no
longer needs to be linear distribution of content through a monopolistic
delivery pipe. Since these other channels, stifling in "the bundle," are
usually better viewed on demand, and since a (hopefully) neutral Internet now
exists, that's where this non-sports content is heading. Many other articles
seem to assume that "unbundled" equates to "OTT distribution."
Bert
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