[opendtv] Re: 247wallst.com: Pay TV Shows Troubling Subscriber Trends

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Fri, 19 Sep 2014 01:45:37 +0000

Craig Birkmaier wrote:

> Look at how long broadcasters have held on in the face of a massive
> decline in their audience Bert.

That's potentially a point. But I can't tell if you're talking about 
broadcasters or about the congloms.

The congloms are creating most of the TV content that people care about, 
whether or not it is transmitted OTA. So no problem there.

The OTA broadcasters, whose basic distribution function has been taken over 
largely by MVPDs, have gone to big station groups (cutting overhead costs), and 
have gotten that strange deal from the FCC, retrains consent. That's what has 
kept them going. In principle, I think that *if* the OTA broadcasters got MVPD 
carriage *and* all of the ad revenue from their ads, they could still have 
survived. Even without retrains consent.

So until now, those two effects have kept them afloat. In the Internet era, I 
think they will need to show how they add value to Internet distribution, 
because I think the retrains consent formula, which only works with MVPD 
bundles, ain't going to last forever.


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