[opendtv] Re: The rationale for retrans consent from local broadcasters

  • From: Albert Manfredi <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Sat, 3 Oct 2015 19:23:22 -0400

Craig Birkmaier wrote:

We've been over this tons of times. As long as CATV systems were in the
business of extending the reach of OTA broadcasters, nobody complained that
they needed compensation. The CATV systems helped the broadcasters reach a
larger audience. The compulsory license was created in 1976 to eliminate the
need to license everything that the stations licensed for their FOTA
transmissions.

It was only after cable systems started to offer content that competed with
broadcasters that the ^#*¥ hit the fan.

And once again, that is their right. Let me put it this way, Craig. If the
customers did not raise a huge stink when the TV network signals are blocked
from cable systems, then there would be no issue at all with retrans consent.
Instead, with low consumer demand, the TV networks would opt for "must carry."
What you continue to miss is that there's a lot of demand for TV network
carriage, by the subscribers.

We don't follow Marxist ideals here, Craig. We follow market forces. Arguing
that the TV networks were doing okay previously will get you nowhere.

They could not retaliate. They were and ARE required to offer the signals of
local broadcasters. If you subscribe to cable you cannot opt out. At least
with
DBS you can choose not to pay for the local broadcast package.

Interesting. I wonder under what circumstances that could be changed. I mean, a
cable system is probably not mandated to offer only MVPD service, right? They
can and do offer broadband and telephone only. So I wouldn't be a bit surprised
if something creative could be done wrt not carrying the local broadcaster
signals. My bet is, this would hurt more than help the cable systems, so they
have no interest in pursuing this route.

There was no competition. Broadcasters were granted a lucrative oligopoly,
one
that has been protected with every technological advancement.

This is your mantra, Craig, which I've responded to many times. The lack of
competition is created by the non-competitive delivery pipes far more than by
the number of competing content owners.

The broadband pipe is just the newest way to sell your bits. It has always
been
about collusion. The Internet does nothing to fundamentally change this.

As long as my ISP is forbidden from blocking sites, I'm pretty happy with the
Internet part of the equation. No matter how you try to twist your words, you
have never been able to demonstrate that mandated-neutral ISPs end up being no
different from non-neutral MVPDs.

Bert

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