[opendtv] Re: TV Ratings Have Hurt Creative Side of Television, Says Netflix Content Boss Sarandos | Variety

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 15 Dec 2014 09:27:58 -0500

> On Dec 14, 2014, at 8:10 PM, Manfredi, Albert E 
> <albert.e.manfredi@xxxxxxxxxx> wrote:
> 
> If the content owners agreed with you, Craig, they wouldn't be thinking up 
> new schemes. The fact is, MVPD subscriptions have dropped SOME, and "the 
> bundle" subscriptions have dropped MORE, which shows to these content owners 
> that they have to do something different. At least, for non-sports-fans.

The content owners most definitely agree with me Bert. If they thought they had 
reached the point of diminishing returns, they would stop pushing up subscriber 
fees. I have posted numerous articles stating that these fees will continue to 
increase for the foreseeable future, with retrans consent fees for broadcasters 
expected to more than double by the end of this decade. 

The fact that the same companies are looking to new technologies to expand 
distribution is not an indication that they intend to give up on a highly 
lucrative business model that is working just fine thank you. It is an 
indication that they are ALWAYS looking for new ways to expand their audience 
and for new middlemen to resell their content. I have documented this numerous 
times, with examples that go back nearly 40 years. 

So please stop trying to twist statements from the content owners to fit your 
misguided narrative.
> 
> That's all that matters, in the end. What these guys think. Not what some 
> rather vague words might speculate. Not even what the MVPDs might prefer to 
> be the case.

Exactly. You are not psychic - you are the one assigning meanings to their 
words which clearly do not reflect what they are saying. 

> I don't ignore that. Instead, I noticed that the drop in MVPD subscriptions 
> occurred initially in 2013, and accelerated in 2014, which kind of 
> demonstrates that it ain't just the economy. If the bad economy was to blame 
> for an initial reduction, perhaps people are discovering that the 
> alternatives aren't half bad?

You are correct about the dip in 2013. The data is not available - yet - to 
claim it is accelerating this year. 

And yes, the alternatives are better than ever. This includes alternatives to 
TV altogether. There is a reason the networks have lost so much of their 
audience, a trend that started decades ago and accelerated BEFORE the economic 
downturn in 2007-8.

Clearly there are many factors in play here.
> 
>> You are wrong about sports fanatics. There are a huge number of
>> MVPD subscribers who do not watch sports.
> 
> Huge number and falling. You keep forgetting "and falling."

Let me know when the number of extended basic subscribers reaches 70%. 
> 
>> I have no reason to cut off my electric, water and sewer service.
> 
> And aren't we lucky that these utilities are regulated to the point that they 
> don't increase fees faster than inflation.

This may be the case where you live, not here. Electricity costs have increased 
8% or more for the past two years. Our natural gas rate went up this year while 
prices have declined around us.

Then again we are forced to buy electric/gas/water from a city owned utility 
that transfers about $35 million annually to the city to keep city taxes 
artificially low. More than 30% of GRU customers live outside the city, and to 
make matters worse, the county levies a utility tax on GRU customers who live 
outside the city.

I would also add that regulation of utilities here in Florida increases the 
cost to the consumer. We are still paying special assessments for a planned 
nuclear plant that will not be built, and for repairs of the nuclear plant it 
was to replace, that will not be made.


There is a reason that companies like Veterans Energy can resell electricity at 
prices substantially below the rates charged by local incumbents. 

Regards
Craig 
 
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