[opendtv] Re: Amazon Warns FCC About OTT Redefinition | Multichannel

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Fri, 18 Sep 2015 01:14:35 +0000

Craig Birkmaier wrote:

You also mentioned A&E and ESPN as sources that might be willing to
leave the bundle, despite the fact that both have said they will
not, at least for the next five years.

ESPN already has left "the bundle," Craig. It is available to everyone in the
US, outside of any MVPD "the bundle," not tied to any TV or Internet service
provider facilities, over the neutral Internet. Give it up, Craig.

Clearly you would recommend going a step further than CBS and
offering the live streams OTT. But what would the economic model
be?

Plenty of options here. One is to offer the live stream FOTI, ad supported,
exactly like FOTA. Plus, as CBS is doing, they can make the library content
available only for a fee, past a certain time, with or without ads. The
congloms have this power you mention, Craig, because they have the highest
value content available to everyone. Or, the live stream could be made
available only for a fee - a perfect way to turn even more people off to linear
TV, even faster than they already are. You seem to think that the live stream
is something special. It's not. It's just the old, inconvenient way of doing
things, totally overtaken by new technology. Most people by far, for most
programming by far, prefer on demand anyway. And most people already use on
demand. Let's not always have to go back to square one.

Even if a network could get 25% of U.S. homes to subscribe, they
would lose money compared to the MVPD business model.

Again, Craig, you make it sound like the MVPD model is doing great. You totally
ignore the fact that it's declining. If it were doing great, you wouldn't see
the CEOs busily trying new things. All of your comments become invalid, when
you finally realize that subscribers are bailing out.

If the FCC chooses to regulate Internet MVPDs, and I believe
they will, the last major hurdle to real completion between the
legacy MVPDs and new internet MVPDs will be removed.

What "major hurdle," Craig? Skipper is already considering making ESPN
available as an OTT service, even after having done almost as much with Sling
TV. HBO is doing the same, as are other movie channels like ShowTime. The FCC
is simply wasting its time with these notions.

I also get the fact that 85% of U.S. homes subscribe to a MVPD service.

NO!! I already showed you the numbers. It is no more than 81% as of the
beginning of this year, *and* that number assumed that US households had not
increased in the past 7 years! So in fact, today, it may well be under 80%.
Let's not always have to revert back to square one.

It also depends on the willing accomplices in government that
have enabled and sustained this oligopoly.

Nonsense. The much less conspiratorial market model tells us exactly why MVPD
nets do what they do, and it requires absolutely no government involvement. If
anything, it would be the hands-off attitude of the govt that permits local
monopolies to operate as they do.

But the reality is that currently, the most successful OTT
services are additive to the MVPD model.

Already covered that old canard too. That's the old pretense. It's not true
anymore. OTT + OTA have become replacements for many households already.

It's weird that you do not understand that we have had Net
Neutrality WITHOUT government intervention.

It's weird that you can't get past generic banalities, Craig. I covered that
several times. And you have yet to explain how that neutrality would survive,
now that the broadband providers have a vested interest in making their nets
non-neutral. Get past the slogans, and focus on details.

We have plenty of laws to keep it that way without letting
the FCC turn it into another regulated monopoly.

The laws that worked so well in making MVPDs non-colluding and competitive,
right?

Competition IS practical. AT&T is finding a niche with
lower cost, lower performance DSL service.

Wrong. AT&T is not available to me, nor to much of the rest of the country, and
no one is offering anything similar here. Competition is not practical,
unless/until wireless broadband becomes more affordable. Maybe then it will be,
and then Title II classification won't be essential.

Bert



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