[opendtv] Re: News: Those licenses will soon be worthless...

  • From: "John Shutt" <shuttj@xxxxxxxxx>
  • To: "OpenDTV" <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 25 Apr 2005 13:19:18 -0400

----- Original Message ----- 
From: "Craig Birkmaier" <craig@xxxxxxxxx>

> But mobile/portable TV is a very important issue, once you get past
> the techno-politics that is behind the decision to protect NTSC at
> all costs. In other words, the NAB and other powerful interests are
> not looking beyond NTSC. They appear content to ride it into the
> ground, until advertisers refuse to support them. If and when that
> happens, support for mobile and portable will become important,
> unless other bypass technologies get there first.

Apparently Mobile TV is important enough for GM to offer factory installed
DirecTV in their upscale Escalades.  The following is just an excerpt.  The
entire article is at
http://www.telematicsjournal.com/content/newsfeed/3049.html

"A ride in a stylish Cadillac Escalade sport utility vehicle just became
even more entertaining with today's announcement that Cadillac dealers
throughout the United States will begin offering the award-winning
TracVision(R) A5 automotive satellite TV system from KVH Industries, Inc.,
(Nasdaq: KVHI) along with DIRECTV(R) satellite TV programming. Cadillac, a
division of General Motors (NYSE: GM), becomes the first automotive brand to
offer live satellite TV as an accessory option through authorized dealers.
TracVision A5, winner of the 2004 General Motors "Most Innovative Product
Design Award", provides in-motion reception of 135+ channels of live,
satellite TV programming from DIRECTV, Inc., in vehicles traveling on open
roads throughout the continental United States. "

> Not exactly. cable does not feed off of broadcasters - broadcasters
> are feeding off of them. You may have mis-understood what your
> broadcast exec said (or he may have been lying). Broadcasters have
> used re-transmission consent to build a new house for the dinosaurs
> we call media conglomerates. They are now going to use
> re-transmission consent to extort subscription fees (or other forms
> of compensation) for the content that they give away via an antenna.
> One form of compensation that is growing in popularity is for the
> multi-channel operator to commit to buying ads from the broadcaster,
> rather than simply writing a check. I have it on good authority that
> some MSOs are using the threat of pulling ads from broadcasters as a
> negotiating tool to help blunt the re-transmission consent sword
> during negotiations.

Cable and broadcast have a synergy that they both are trying to maintain.
On the one hand, early on in the cable revolution broadcasters were
concerned that if viewers had to use some sort of antenna switch or other
awkward way of changing between cable and off air channels, they might just
bypass the off air stuff altogether.  So Broadcasters wanted to make sure
they were carried on the systems.  (Must Carry.)  Later, the cable operators
and the broadcasters realized that even with 150 channels, network fare
still got the most eyeballs, especially during big live events such as the
Super Bowl.  So cable companies couldn't drop network affiliates without
alienating subscribers, thus Retrans Consent was born.

Unfortunately, most television execs, including those at PBS, are still
stuck in the mindset that all off air bits need to be carried by cable.
They can't see past the current NTSC based paradigm to a new shift where
digital OTA actually attracts viewers.



 
 
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