[opendtv] Re: Amazon Warns FCC About OTT Redefinition | Multichannel
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 23 Sep 2015 01:45:56 +0000
Craig Birkmaier wrote:
Affiliates enable retrans consent dollars that would be lost going
direct over the Internet.
The bulk of retrans consent compensation goes to the congloms, right? I assume
it's most of it, but at least a very significant part. Why can't the congloms
get that directly? If ad-supported, the congloms get all of the ad revenue. If
it's a SVOD site, the conglom get all of the subscription fee for its content.
You'll note the FCC asks the very same question I ask. What makes you think you
need an OTA broadcaster middleman in this?
CDNs have nothing to do with it
Aside from the small amount of local programming an OTA broadcast station
provides, the CDN in fact plays exactly the same role as an OTA broadcaster
plays wrt OTA viewers. And a CDN/broadcaster combination could continue to
create that locally produced content, and splice it in electronically,
throughout its distributed server net.
The only realistic alternative is going direct with the MVPDs,
which would retain 85% of their audience and 100% of the retrans
dollars.
For the nth time, you have missed that your 85% figure is probably less than
80% by now, and declining at an accelerating rate (last stats we've seen, 2Q
2015). Hardly realistic to stick exclusively to this, Craig.
I said that the second revenue stream is helping to keep local
broadcasters viable.
So what? Why should a conglom care? Over the Internet, live sports do not
require an OTA broadcaster to be involved. Just a good CDN. Local ad insertions
do not require an OTA broadcaster either. The ads are spliced in at the video
servers. You seem to miss the plain fact that to make money, you have to
provide added value. Don't tell me that a broadcaster can make more money with
retrans consent dollars. Tell me why anyone should care.
The congloms are putting their programming on the Internet as a
supplement to the live linear network feeds delivered FOTA and
the MVPDs. They are not putting the live linear feeds on the
Internet,
Two problems with you thinking. One is this "supplement" stuff. As you see from
the FCC, in my previous post, it's not necessarily the case. They are putting
their stuff online to be more competitive. The second problem is the business
of live feeds. Live feeds can easily be added to online sites, just like CBS
All Access does. It's **ENTIRELY** up to the conglom! No OTA broadcaster has to
be involved. Plus, live feeds are not that important anymore. People are
dropping your "live feeds" in droves, Craig. As soon as consumers figure out
the alternative, they drop that dependency on linear. We went over the stats.
It's been happening just over the past couple of years. Stats from 2010 or even
2013, on on-demand consumption, are way lower than 2Q 2015. Get over it, Craig.
Time to move on.
Retrans consent is not applied to TVE,
Really Craig? So, an MVPD can drop the OTA station entirely, from its MPEG-2 TS
broadcast channels, quit paying retrans consent, but continue to transfer the
linear feed as a TVE stream? Interesting! There's one way to save on those
pesky retrans consent fees, eh?
Would CDNs pay the congloms to run servers for them?
Of course, although I'd much rather see the more meaningful model set up.
Conglom pays the CDN. The way it should be.
Disney Corp negotiates the carriage fees for each of the networks it
delivers through the MVPDs. There is a big fee for ESPN, another big
fee for The Disney Channel, and smaller fees for ABC Family and
their other rerun channels. Sling still pays the big fees for ESPN
and The Disney Channel. Disney loses the "welfare payments" for the
channels that Sling does not carry.
Disney also loses the welfare payments from those who have **SHAVED** or cut
the cord, and who do not subscribe to Sling TV. You simply cannot argue this
point, Craig.
[Go 90] The only live linear is NFL, and only for Verizon subscribers.
First: prove that NFL is the only live streams. At the very least, college
sports would also be in there. And, since they say "traditional TV," hard to
say how many other linear streams will be included. Second: Verizon broadband
subscribers are not Verizon MVPD subscribers. A cord cutter could still be
connected to Verizon broadband. Third: linear streams are losing demand fast.
You cannot access Go90 on your PC.
In the future, they say, more devices will be supported. Including "connected
TVs." But sure, I already said I didn't like the non-neutral aspect of this Go
90 service. It behaves a little like TVE, in its non-neutrality, although it's
FOTI.
Bert
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