[opendtv] Re: B&C: Analyst Sees 31M Homes Cutting Cord in Decade
- From: Craig Birkmaier <brewmastercraig@xxxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Tue, 25 Jul 2017 08:05:13 -0400
Thanks for posting this Bert.
It confirms what I have been saying for several years.
We are not seeing the death of TV bundles, but rather the expansion of ways to
buy these bundles, together with a shift from dedicated MVPD infrastructures to
Internet distribution.
As usual you cherry pick the stuff you like and ignore the real info in the
article.
On Jul 24, 2017, at 4:47 PM, Manfredi, Albert E
<albert.e.manfredi@xxxxxxxxxx> wrote:
"In terms of models that face the most challenges, it is tough for us to
imagine a world where all the 200-plus cable networks in existence today
remain viable."
Yup. I've been saying this for several years.
The proliferation of MVPD networks was CAUSED by the 1992 Cable Act. Adding
channels allowed the MVPDs to avoid the "intended" rate regulation, and the
content congloms were more than happy to add networks to increase subscriber
fees. They simply started using their vast libraries of content to create new
networks.
OTT video on demand services have made these "rerun channels" obsolete. Thus we
are returning to a world with 30-50 live TV networks, and a very large
percentage of cord cutters will subscribe to VMVPD services as the article
points out.
Indeed, probably not, although these would most likely be replaced with a lot
more than just 200. Because when there's no single, walled garden gatekeeper,
as a source for TV content, any number of sources can emerge.
The number of OTT services with popular TV entertainment is not going to grow
dramatically - there is no need and the content congloms do not have any
motivation to break up the bundles they now sell.
The good news is that the cost of the bundles is dropping dramatically as the
congloms cut out the MVPD middlemen. But even this is temporary - it just
allows the congloms to set a new rate floor, then keep raising the cost over
time.
Craig calls this "doom and gloom," repeatedly, even though it's the natural
open market mechanism that solves his previous objections, to bloated and
expensive bundles.
Not doom and gloom Bert. Just some monopolists adjusting their business model
so they can maintain existing profit levels by cutting out a costly middleman.
Kinda like what Amazon is doing to local retailers...
When the consumer is not walled in, market rules can apply. (Craig also has a
problem understanding what "walled in" means, for some reason equating being
"walled in" with sites that require subscription.
DUH.
Who is offering YOU all of the content that most Americans watch WITHOUT a
subscription Bert?
Even though subscription web sites can't wall anyone in, unless the
unfortunate customer doesn't know how to use his browser!)
Subscription websites ARE walled gardens Bert. At best we are seeing a bit of
customization of the bundles, rather than forcing people to buy 100 or more
networks they don't watch. Now some services only require you to buy 30
channels.
The other major change is the availability of SVOD services like Netflix, which
is evolving into another HBO.
Regards
Craig
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