[opendtv] Re: Balancing Retransmission: And the Data Says... Advantage Broadcasters - Mixed Signals | Blog on Multichannel News

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Wed, 18 Jul 2012 18:14:53 -0400

At 5:28 PM -0400 7/18/12, Mark A. Aitken wrote:
http://www.multichannel.com/blog/Mixed_Signals/33463-Balancing_Retransmission_And_the_Data_Says_Advantage_Broadcasters.php

Jimmy Schaeffler
Jimmy Schaeffler <http://www.multichannel.com/blog/profile/19668-Jimmy_Schaeffler.php>


 Balancing Retransmission: And the Data Says... Advantage Broadcasters


Thanks for the study Mark, but please excuse me if I am not convinced. Then again, I am personally offended by the concept - make that reality - that I must pay additional fees to watch advertiser supported television programming. Perhaps this has something to do with the reality that i was raised watching TV via an antenna.

;-)

The following is pure bull*#@^

*Broadcast Claims *

In The Carmel Group study, and as noted in the chart below, study of reliable data proved that the rise in cable TV rates comes not as a result of content providers receiving ever-greater fees; rather it comes from pay TV operators raising their rates (and margins). Indeed, the U.S. government, in the form of the FCC, revealed these data points.

Let's be honest here. No consumer really knows how much of the monthly bill goes to the cable company and how much goes to the content owners in the form of subscriber fees. But it is a safe bet that the subscriber fees for extended basic cable now account for 1/3 to 1/2 of the bill.

What IS important here is that MVPD rates keep rising at rates at least 2X the inflation rate. So the reality is that every year we pay more in subscriber fees, and every year the MVPDs pile on too.

THis would not be a problem, IF a real marketplace existed. Unfortunately this is not the case.


Carmel Group retrans chart

What was also fascinating was to compare the core value of the broadcast TV shows, to those of the so-called cable TV programming. As the "relative value" chart below indicates, considering the audience interest of one versus the other, and considering the prices paid for each, broadcast content providers are in a unique position to seek more per-viewer compensation from pay TV operators in the future. An additional point included the fact that when an outage occurs, consumers can still access broadcast TV via an over-the-air antenna.

Not so unique. I know of no broadcaster who has the balls to ask for more than a buck or two a month for the rights to their programming. But tens of millions of consumers are paying more than $4 per month for ESPN.

And I do not find it comforting that broadcasters feel that they are in a superior position because they can with hold content from the MVPDs, but not to worry, you can put up an antenna when the channel that you are paying for goes away.

*In Summary*

In short, the lay of the land suggests "Advantage broadcasters?at least for now."


DUH.

It's nice to have the politicians in your pocket..and their money in your bank account. The haul this election season will be significantly more than $2 billion.

Regards
Craig


----------------------------------------------------------------------
You can UNSUBSCRIBE from the OpenDTV list in two ways:

- Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org
- By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word 
unsubscribe in the subject line.

Other related posts: