[opendtv] Re: News: Fox Playing Hardball With Balky Affils

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Sat, 14 May 2011 07:29:57 -0400

At 9:14 AM -0400 5/13/11, John Shutt wrote:
How is that "free" TV business model working in the UK?

www.tvlicensing.co.uk


John raises an interesting question. Clearly, the TV license in the U.K. is a significant tax, which is used to fund a very large broadcast organization, the BBC. And, thanks to the TV tax, the BBC is able to create world class (commercial free) programming on a par with the commercial media conglomerates in the U.S.

Because of the TV tax they don't waste a lot of air time begging for donations like a certain non-commercial broadcaster in the U.S., which ALSO gets a fair amount of the taxes we pay (just not directly coupled with the ownership of a TV).

What is dramatically different about TV in the U.K. is that there is a vibrant TV market served by commercial broadcasters based in the U.K. as well as the U.S. media conglomerates. These companies actually PAY significant amounts of money for the right to deliver their advertiser supported content to consumers via a FREE multichannel broadcast service. They do not expect consumers to pay billions in subscriber fees to view programs bursting at the seams with commercials, as we do here in the U.S.

So what is so different here in the U.S., that the same advertiser supported TV business model is no longer considered to be viable without the second revenue streams from subscribers?

Let's "do lunch" and have our lawyers talk about it...

Regards
Craig


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