[opendtv] Re: Analysis: Time to Screen Out Unloved Channels
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 30 Jun 2009 11:50:14 -0400
Craig Birkmaier wrote:
> No, this is not about leveling the playing field. It is about
continuing
> to control it. The conglomerates should rightly be concerned about the
> Internet. What would happen if 85-90 million homes were to cancel
their
> cable and DBS subscriptions and spend $50-$100 per month buying the
> programming they want, rather than having that money spread around a
> bunch of channels they never watch?
This is illogical. The conglomerates "should rightly be concerned about
the Internet?" The congloms ARE putting their content on the web, and
it's free, with minimal ad interruptions. They should be concerned?
If 85-90 million homes drop their MVPD subscriptions, do you think
they'll stop watching TV? No. They will get it free from the Internet.
And Internet ad revenues will go up, and the congloms will put more ad
breaks in their online shows, and we'll be back to ad-supported TV, with
many ads, and no way to fast-forward them. The congloms win out, easily.
Who should be concerned are the MVPDs, as Peers states, and affiliated
broadcasters, or any other specialized distribution medium. Why even
discuss pay-per-view, as you do often, when those that create the most
desirable content are making it available this way?
The conclusion Peers comes to, "Money saved could be returned to
customers through lower charges or redirected to broadcasters. That
would level the playing field and make it easier for the industry to
come up with a coherent approach to the Web," misses the point. If the
trend is free Internet delivery of content, with no middle-man other
than a generic broadband provider, then there's no need to save any
middleman. Those who lose out most are the MVPDs and the affiliated
broadcasters.
> If small networks lost affiliate compensation, they would likely move
to
> the web to distribute their content, as is the case for all kinds of
> content that is already available only via the web.
I'll bet a huge percentage of content on the web makes virtually no
income. It just sits in a server somewhere, costs little to keep there,
but generates hardly a drop of revenue. That is where ther niche content
providers will end up.
Bert
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