[opendtv] Re: Philips adds Net TV to new televisions

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 3 Mar 2009 17:26:35 -0500

Craig Birkmaier wrote:

>> Imagine a situation where the networks control their entire
>> nationwide OTA network, in addition to having their content
>> on all the MVPDs. Would they have any good reason to pull their
>> first run episodes from their OTA network?
>
> Absolutely!
>
> The vast majority of their audience is watching via the MVPDs,
> and giving a cable network the first run makes it possible to
> push for higher subscriber fees - money that is now going to
> affiliates.
>
> Aside from the fact that the networks cannot have a national
> broadcast ownership footprint, there is the reality that most
> consumers will stay with cable or DBS for expanded programming
> choice.

There you go, assuming the old rules must apply. So ask yourself, how
come this is not the case in European countries, not even Germany, where
cable is also used by the majority of households.

My going in position is, *if* the FCC wants to retain FOTA broadcasting
in the USA, which especially their new leftie mantra claims they want,
*then* they will have to take the shackles off OTA, as they have never
burdened the MVPDs with those same shackles. One of the biggest being,
remove the national cap.

The fact that most households will stick with their MVPDs is *precisely*
why the network has nothing to lose, and everything to gain, by
transmitting whatever it chooses on the OTA pipe. They get increased ad
revenue from the OTA pipe, and they won't lose any MVPD subscribers
anyway, and the OTA medium is cheaper to run (when the FCC fixes its
archaic rules).

Programming transmitted over a labor-intensive medium like cable needs
to be compensated at a higher rate. Not to create bigger profits, but to
pay for all those trucks and all those people. The OTA medium ought to
come in much lower cost, were it not for the affiliate arrangements
necessary.

> Bottom line, the OTA franchise is taking its "natural place"
> in the content distribution food chain...

Yup. The "natural place" is less choice, and lower operating costs, but
of the same quality as what's offered over the MVPDs.

That's how it should and could be, anyway, were it not for
counterproductive FCC rules and lobbyists pushing to tether everyone.

Bert
 
 
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