[opendtv] Re: Auction Hi-lights
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Mon, 24 Mar 2008 12:12:42 -0400
Bob Miller wrote:
> Bert says it is not possible to see current broadcasters
> building out an expensive national broadcast network because
> the cost of infrastructure is so high. I agree. I can't
> imagine current broadcasters understanding the value of
> broadcasting OTA.
That was related to installing a nationwide SFN.
> But we may see winners of Auction 73 doing just that,
> building an expensive broadcast network, or even more
> peculiar, building out an even more expensive national
> network for a much lower value business of broadband IMO.
I'd expect these winners, i.e. mostly AT&T and Verizon, to build out
something that is similar in cost, possibly more costly, than their
cellular networks. And for which they will extract monthly fees at least
as high as that as well. (Probabaly higher, since this was the biggest
auction ever.)
So, assuming you're talking about FOTA broadcast, how does that revenue
compare with ad-supported TV? I don't know, but to me that's the
question to answer.
Or, if you're talking about ad-supplemented subscription TV, then maybe
the monthly fees can be a little lower.
I don't know about you, but to me these outrageous auction revenues are
scary. As scary as the way house prices went up the last few years.
Hrdly something to cheer about. The money might be going in the Treasury
in the short term, but somehow AT&T and Verizon are planning on making
back many times that amount.
Bert
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