[opendtv] Re: Minority and rural groups oppose FCC's plan to change cable TV rules

At 4:37 PM -0500 11/22/07, Albert Manfredi wrote:

Craig Birkmaier wrote:


 Why would ala carte result in the availability of less
 channels?
Simple. If each channel must pay for itself, there's no hope of stuffing a few frequencies with material of questionable general interest, like minority or other niche programming. The cable system would instead grab that bandwidth and use it for more lucrative purposes, such as VOD, HD simulcasts (for which they can charge extra), broadband Internet access, and telephone service.
Is this not more of a function of the marketplace? There may be special interest groups (including minorities) that would gladly pay a monthly fee to access this content. For example, why are there so may religious broadcasters using both TV and radio spectrum? Clearly they can generate enough revenue to operate stations and to create content that they deliver by buying program time.
The real question is whether the cable networks can survive without monthly subscriber fees, or risk a dramatic shrinkage in the number of homes cleared, if they continue to charge subscriber fees. It is my opinion that MANY of these channels would drop their subscriber fees in a heartbeat, if faced with the reality that a multi-channel subscriber would choose not to pay for their network.
The reality is that today the multi-channel systems are stuffed with channels of questionable interest. IF you doubt this, look at the channels available in the lifeline or limited basic packages from the cable companies. They ALWAYS include one or two shopping channels.
The channel line-ups are based on the maximization of revenues for both the content conglomerates and the multi--channel system operators. Every channel has a "deal" associated with it. ANd in many cases money flows to the multi-channel systems to get networks started. We are currently hearing about the cash that the NFL network is offering to cable to get carriage. The Fox News Network paid the cable industry about $700 million to get carriage in the '90s. Now, due to the popularity of this network, cable is collecting monthly subscriber fees for them.
Ala carte is not going to make it more difficult to gain carriage for niche networks. It could actually help them if they have a loyal base of potential viewers willing to pay a monthly fee for a niche channel. But my guess is that this is NOT the way it is going to play out. Instead, I believe this niche content is going to go direct, using the Internet to sell niche programming, cutting out the middlemen, except for the cost of a broadband service. 




 The problem for minorities now is gaining access to distribution.
The only hope for these special channels would be for them to be included in bundles, perhaps even mandated to be bundled among more general interest programming, by local governments. Just like other similar channels on cable systems are mandated.
Not true. They can pay for access now as they have in the past. The real issue is whether there is enough of an audience to support a 24/7 network. With Internet downloads you only need to worry about the content you are creating, and how to promote it. 




 Meanwhile, cable systems are trying to find spectrum for
 new services, as the FCC wants them to simulcast in analog
 at least through 2012.
Or provide the necessary D/A conversion on customer premises. But that's exactly the point. So I don't understand why we aren't agreeing.
Because you think Ala carte is unworkable and will make the situation worse, while think it is the key to ending the absurd practice of paying for advertiser supported programming twice.
You are not among the 85% who are paying through the nose for your TV fix. Paying for all kinds of stuff you don't watch because they can get away with what would be illegal tying in most industries. 

Regards
Craig


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