[opendtv] Re: Product Half life

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Sat, 16 Apr 2011 07:41:37 -0400

At 3:34 PM -0500 4/15/11, Manfredi, Albert E wrote:
By extension, exactly the same applies to FOTA TV. It's up to the congloms and the local broadcasters to decide how much of their stuff to distribute over the Internet. That doesn't change the nature of the content at all. So I don't understand why anyone would think that broadcasters or congloms are on the way out.

You don't need an FCC license for valuable spectrum to distribute content over the Internet.


Take away the distribution job entirely. The local broadcaster would not be required to distribute an affiliated conglom's content any longer, probably, but the local broadcaster could continue to provide whatever "local content" he was creating previously. And distribute it over the Internet. If this "local content" is as much in demand as we hear, why would that change?

Well for one thing, they would have no economic basis to exist, or at the very least would generate only a tiny fraction of what they can make today thanks to the protections that come with the license, like must carry/retrans consent.

Local newspapers are doing exactly what you suggest via the Internet, including distributing video. Last I checked most local newspapers are still withering into irrelevance.still dying.

So I'm not sure my definition is all that liberal. What makes CBS CBS is not that it uses VHF channel 9 in this market, but that it transmits shows like NCIS, CSI, or The Mentalist. By the same token, what makes the local broadcaster (WUSA in this case) unique, and especially desirable to some people, are its local news and weather programs, and other local shows it airs during the day. I don't see why interest in any of this would change, just because the distribution protocol changes.

Yup.

And wen CBS decides it does not need channel 9 to distribute its content, WUSA must either create (or buy) programming to fill in the gaps. And they will lose the primary justification for retrans consent payments. People watch LPTV stations too, but their economic viability is near zero. It still boils down to the fact that broadcasters still exist because they have exclusive rights to valuable content in their market. Take that away and the economics are completely different.

To a FOTA TV user, or to a "cord cutter," the fact that everything is a la carte is not something new. It's pretty much same as always. Internet distribution offers more choice, and VOD without having to record in the home.

It all boils down to whether they can access the content they want. Today this means an MVPD subscription, which forces us to pay for stuff we don;t want. Time will tell if the congloms will allow new distribution partners to move to a true ala carte model...

Regards
Craig


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