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

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 16 Dec 2014 03:03:54 +0000

Craig Birkmaier wrote:

> 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.

We saw, Craig, that 80 percent of the increase is caused by sports. We also saw 
that these CEOs acknowledge that fact, and one of them (I think Leslie Moonves) 
said that there wasn't a lot of wiggle room for increasing fees, when sports 
takes all the oxygen out of the room.

In any event, once again, they will continue to raise fees even faced with 
membership decline. As of now, that makes up for the revenues lost from those 
dropping out. I've posted that fact many times now. And, I've also said many 
times, and so have the CEOs, that they want to reach those who dropped out.

> 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

Many people, Craig, are simply not sitting by doing what the content owners and 
the MVPDs (and apparently you) want them to do. That is what cord cutting and 
shaving means. The consumer doesn't care how lucrative some business model is 
for the service provider or the content owner. You seem to keep missing that 
basic fact of life.

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

At least, I don't change their words to fit some new political agenda I'm 
trying to defend, Craig. Even John Skipper said that a 10 percent decline would 
cause ESPN to make big changes, and he was talking about addicts with no demand 
elasticity! For some reason, you seem to think nothing is changing.

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

You are wrong. The figure for 2014, as of October, was already bigger than 
2013. Read back in the archives. I posted that more than once.

> Let me know when the number of extended basic subscribers reaches
> 70%.

Last time, you asked that same question with 80 percent, and I obliged pretty 
fast. These guys aren't dumb, Craig. They aren't going to allow 30 percent of 
their viewers to bail out without taking remedial measures, or even 15 percent. 
How is it you keep missing this point?

Bert

 
 
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