[opendtv] Re: An Unsteady Future for Broadcast
- From: Albert Manfredi <albert.e.manfredi@xxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Mon, 23 Nov 2009 20:55:31 -0500
Dale Kelly wrote:
> Having been the Director of Engineering of a large
> station group owning affiliates of all five
> networks and, having also been that companies
> representative at ATSC, I was an acute observer
> and critique of network business practices over
> that past ten years. It became clear to me early
> on that the Big 3 were/are preparing for and even
> acting to hasten the demise of OTA broadcasting.
Parenthetically, the article seems to say that Moonves, at least, does not want
this for CBS. Close parentheses.
My take on this is that a way to hasten the demise of OTA stations would be for
congloms to sell off their O&Os, and then to demand compensation FROM the local
broadcast stations for the rights to air the conglom content. If this is true,
then it APPEARS that the networks have done this already. To a large extent.
(Didn't NBC have the greatest number of O&Os? That's history.)
If station groups interested in the OTA business can make the economics work, I
fail to see why the congloms wouldn't sell to them, as the business model is
today (according to Craig).
OTA stations reach fewer people overall than cable, which means the congloms
can charge less to the OTA station groups (per market). At the same time, the
OTA stations have much lower overhead costs, so ad support should go a longer
way to bring them to solvency.
Bert
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