[opendtv] Re: News: Fox Playing Hardball With Balky Affils
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Fri, 13 May 2011 16:37:11 -0500
Craig Birkmaier wrote:
> So here we are today - the underlying business model of Free TV in
> exchange for spectrum is NO LONGER TENABLE.
Fox isn't saying anything yet about "not tenable." Here's the quote:
"'I would say it's a challenging time,' he said. 'We've got affiliates trying
to figure out ways to make things work in the future. We want to help them
figure that out. ? Our goal is to keep affiliates right where they are. We like
the affiliate body right now. But we have to acknowledge the financial
realities the network is dealing with. We want to balance that out as soon as
possible.'"
Had Fox been pulling their content from OTA broadcasters entirely, that would
really have been a development.
It looks like the broadcasters may be going to sharing their spectrum for two
of the bigger networks, as the one example shows (Fox and MNT from WTVW). This
would be interesting, if the motivator were not the FCC but instead the
networks themselves. Broadcasters could certainly fill their multiplexes with
only the most valuable program channels, more like European ones do.
Or the other example, where the same newsroom will produce the local news for
the Fox and the ABC affiliated stations, both owned by Journal, in Boise.
Funny thing is, the money flows from MVPDs to the broadcasters and to the
networks. So whatever squeezing the networks do will first and foremost raise
the MVPD subscription fees.
This will result in more cord cutting.
> The bug that tells them that Americans can afford to pay more, be it
> taxes or their entertainment fixes...
You saw what happened at the recent mid-term elections. If consumers grow a
spine, the same will happen in this instance, and that's how the system reaches
a balance. It's all up to the consumers, just as it's all up to the voters when
it comes to who we have in office.
Bert
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