[opendtv] Re: News: Those licenses will soon be worthless...
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "OpenDTV (E-mail)" <opendtv@xxxxxxxxxxxxx>
- Date: Mon, 25 Apr 2005 16:46:47 -0400
Craig Birkmaier wrote:
> Cable already competes effectively with broadcasters
> in the local spot markets, and DBS will soon be
> playing in that arena too as they move to local
> insertion of ads in the STB. Cable can offer increased
> frequency at a significantly lower CPM,
Not sure what you're describing here. Are you saying
increased frequency of ads? If yes, then I'll go back
to the old Laffer curve comparison:
http://www.investopedia.com/terms/l/laffercurve.asp
There comes a point where increased frequency of ads,
like increasing taxes rates, reduces revenues rather
than increasing them. I don't see any medium that
increases the ads per hour compared with OTA as being
at an advantage.
> Cable systems typically insert ads into 30 or more
> channels today - they offer access and demographic
> targeting that broadcasters cannot match.
Some amount of demographic differentiation could be
done with DTT, possibly, as Kon and I discussed
briefly some months ago.
Seems to me that people will rebel against increased
spam, as has happened on telephone systems and on
ISP Internet connections. When you list the many
more effective spamming methods cable, DBS (and TiVo)
might offer, I can't help but wonder why they
wouldn't just turn off consumers even more than they
already are. We'll start seeing legislation passed
to control the overload of spam, just as we got with
telephone and just as we're starting to see for
Internet spam. More effective spamming methods always
seems to result in MORE SPAM, not just better targeted
spam.
> The telcos will have little choice but to open their
> networks up to anyone who seeks carriage. Eventually
> they will provide the infrastructure at the edges of
> the network that will allow anyone to use the public
> Internet to distribute TV content.
Consider what you wrote there. If the telcos open "the
edges" of the network for anyone to provide content
streams, which to a degree they do already, those same
telcos have to provision the core of their network to
carry all these streams. Ditto the cable companies and
any ISP, for that matter.
If these are fast TV-quality streams, someone has to
pay for the upgrading of the network core. The way you
keep the network core up to date, and prevent it from
overloading, is by charging different amounts for use,
depending on the amount of traffic each subscriber is
going to inject. And you apply mechanisms in the
network that prevent subscribers from exceeding their
allocated quota.
This will continue to be the case. And it also applies
to how a DTT broadcaster would rent out room on his
multiplex. The same problem applies generically to any
medium.
Bert
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