[opendtv] Re: SBC Joins the Convergence Crowd

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "OpenDTV (E-mail)" <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 5 Jan 2005 16:10:47 -0500

Craig Birkmaier wrote:

> What if content owners are able to bypass all of
> their existing distribution "partners" and simply
> deliver products to consumers via IP networks. In
> other words, the consumer just pays for bandwidth,
> and they buy content in an open marketplace, not
> unlike the Internet?

This is not so different from cable or DBS today.
The Internet is a network consisting of links
provided in large measure by the telcos, and paid for
by individuals and corporations. The content on the
Internet is often free, but sometimes paid for
separately. But you have to pay the phone company
or the cable company, and perhaps a separate ISP, for
access, and you pay according to the bandwidth you
want. Carriage isn't free.

If a separate right-of-way, such as DBS or cable,
chooses to do so, it could also charge separately for
carriage and for content. Even OTA did this, with the
"marquee" service that came before cable HBO. They
didn't charge for the use of public spectrum, but
they did charge for content instead of using
commercials. Cable companies charge separately for
premium services too, added on top of carriage.

So what's the big difference? If a service installs
an independent right-of-way and chooses to charge
bulk fees, instead of more a la carte, who's to say
you get less for more?

If SBC or other telcos decided to distribute TV
content as cable and DBS do, they can choose to
charge separately for that content, a la carte, or
just add a bulk fee to your phone bill. I don't see
why this is so important. Phone companies have
offered by-the-call or any number of bulk rates for
decades. Surely, they can do the same with TV
distribution, if they would take the leap. No one
was suggesting that telcos own TV content, as far as
I could tell.

Bert
 
 
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