[opendtv] Re: 20040601 Twang's Tuesday Tribune (Mark's Monday Memo)
- From: "John Shutt" <shuttj@xxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 2 Jun 2004 13:52:19 -0400
----- Original Message -----
From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
> If ads can support 6 OTA stations in a marginally successful
> NTSC OTA infrastructure, why shouldn't ads alone be capable
> of supporting more channels in a likely *more* successful DTV
> infrastructure?
As subchannels to an existing network affiliate's main channel, yes
absolutely! The main network signal pays the bills, and the subchannel
revenue is gravy. But for a stand-alone new station constructed from the
ground up expecting to live off of a 5 SD channel multiplex, I seriously
doubt it. For 4 such stations to make a go of it (in order to reach the
Freeview number of offerings), almost impossible.
> And as cable systems have shown, supporting more channels is
> possible even when many of these additional channels are not
> in very high demand.
Those additional channels are supported by a dual revenue stream: ad sales
and subscription. Your local cable company pays the cable channel per
subscriber, you know.
> If the attempt being made by USDTV and others is to convert
> OTA TV into a subsription service, I will almost guarantee
> that it will fail. If they are merely providing some
> additional content for a subscription fee, it might work
> out. USDTV claims they need (IIRC) 39-40 Mb/s per market.
Freeview is all SD, and in 8 MHz channels, so the number of services per
"channel" is much greater than here.. The John Golitsis' and Doug McDonalds
of the world are demanding HD 24/7, which limits the number of bits
available for USDTV and a Freeview like service to coexist in the same
market.
USDTV is destined to fail, simply because in addition to having to purchase
the transmission capacity, they have to subsidize the STBs being sold at
Wal-Mart as well. When they go down in flames in 2 years, then maybe a
Freeview like service will rise out of their ashes.
John Shutt
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