[opendtv] Re: Shifting Online, Netflix Faces New Competition

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Tue, 28 Sep 2010 08:03:39 -0400

At 5:37 PM -0400 9/27/10, John Shutt wrote:

So this isn't going to be ready by 6 February, 2011?

Oh.
I suppose we'll have to keep the antiquated OTA and MPVD pipelines in place for special occasions like the Super Bowl for a bit longer.
Seems to me that if we must go to all of that expense keeping those old pipelines open just for a couple of uses per year, there ought to be something those pipelines could be used for the rest of the time...
You've pretty much nailed it John. Broadcasting survives on exclusive content deals, and their ability to reach the remaining OTA audience that refuses to subscribe to an MVPD.
As the article I posted yesterday suggests, there value of the broadcast networks is now going negative, although their O&O stations are still in the black. The reason is simple. Networks that can generate dual revenue streams (like USA) are in a better position to pay for the rights to the most desirable programming.
That being said, the broadcast networks will survive as long as OTA broadcasting survives. The reason is that they are a small part of big content oligopolies that can afford to use them like the loss leader sales that retailers use to bring people into the stores. 

Regards
Craig


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