At 6:51 PM -0500 11/13/07, Manfredi, Albert E wrote:
Even the network-owned stations would benefit from attracting those who won't go to subscription services, such as me. And would have a greater chance of making me loyal if they offered a mix of programs that would lure me away from other local OTA stations.
They really don't care Bert.The real advantage of owning a broadcast network is that EVERYONE has access to these networks, no matter how they get their TV signals. Likewise, the advantage of being a broadcaster is that everyone in their market can see their content, they get ALL of the ad revenue, and now they get re-trans consent payments too. Broadcasters do care about ratings, but not in the narrow context of their OTA audience. They sell the total number of viewers they can attract, and cable often helps extend the reach of their OTA signals (i.e. it covers areas where the OTA signal is not usable).
Broadcasters are FAR more concerned about the 55% of the TV audience that is NOT watching them than the small number of OTA only viewers they may gain at the expense of the other local stations.
I already offered a different model from what we have now, as a possible solution to this dilemma. It would be one where the content providers, including the local broadcasters, pay the neutral cable and DBS companies for carriage, but get all the ad revenues. Then these content sources would more obviously see the benefits of as many carriage media as they could use. Including their own OTA plants.
Broadcasters ALREADY get ALL the ad revenues - cable cannot insert ads into local stations unless the stations agree. I have seen this happen with some research studies, but the everyday reality is that the local broadcast sales guys are knocking on the same doors as the Cable Rep sales guys who sell ads that get inserted into cable channels -they are not splitting ad revenues, but they both are going after the available local ad budgets.
Why pay cable for carriage when you can get the cable guys to collect subscriber fees for you?
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