[opendtv] Re: Wha' Happened to the FCC?
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Fri, 5 Mar 2010 17:06:29 -0600
Craig Birkmaier wrote:
> Seems that the broadcasters have the advantage in terms of
> must carry/retrans consent.
You have to update your assumptions, Craig. The assumption in what you say that
the "local broadcaster" is the sole source of some really high quality content
that all local MVPD outlets must have. Instead, with the congloms changing the
way they do business, that assumption is becoming wrong. So the local
broadcasters have to get more buying power to compete, and that ain't going to
be no mom and pop operation.
> The MVPDs have the advantage in that they have the content that
> most people are watching - I'm not talking about the stuff that
> is available FOTA.
Again, you have to update your assumptions. I'm past the point where OTA
stations transmit what you seem to assume they always have and always will
transmit. And by the way, OTA stations are also past that point, although not
past enough yet. They too can transmit at least SOME of what you claim "most
people are watching."
> And they have the ability to collect subscriber fees and
> compete for local ad dollars.
Oh, and you forgot the biggest advantage MVPDs have. The MVPDs also have the
advantage of paying for large fleets of trucks, salaries, medical, retirement,
vacation time, for substantial workforces in every single market. No, not just
news crews and the local talent.
> Obviously if they chose to create a Freeview like system they
> would not be able to demand carriage and compensation from
> competitors.
Not true. The American consumer is lavish enough that I'm convinced most of
them would continue to want MVPD service. It's just that the equilibrium would
shift some, as it MIGHT already be doing a little. Depending whether the rules
change, the OTA broadcasters may continue to be the sole source for some of
that network content, or not. I don't know. With this FCC intent on demolishing
FOTA TV, you just can't tell what they'll do next to prop up MVPDs.
> Please explain how a national footprint helps ANY local
> broadcaster or station group?
That's obvious, Craig. The same way a supermarket can undercut a mom and pop
store. It's called buying power. "Local broadcaster" may be nothing more than a
local RF outlet of an OTA network.
Bert
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