[opendtv] Re: Bob likes COFDM

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "OpenDTV (E-mail)" <opendtv@xxxxxxxxxxxxx>
  • Date: Sat, 26 Mar 2005 18:05:34 -0500

Craig Birkmaier wrote:

> > If so, why isn't it all a matter of how they
> > re-negotiate with the cable companies, once they
> > develop their DTT multicasts? All they would have to
> > do is incorporate one or two of their more
> > popular cable channels in the DTT multiplex.
>
> The pot of gold at the end of the cable/DBS rainbow is
> the monthly subscriber fees that the conglomerates
> collect for EVERY home in a market that subscribes to
> extended basic cable. If they offer these channels free
> in an OTA multiplex, cable and DBS will rightly get
> really pissed off.

But the conglomerates don't need to worry about whether
cable and DBS get POed. This is business. If they offer
this now-cable-only content FTA, along with the
traditional FTA channels, then won't the conglomerates
and their affiliates get more of the ad revenue?

So why isn't this just a simple business decision for the
conglomerates? More ad revenue vs some amount of $ per
subscriber per month and no ad revenue?

> In order for broadcasters to compete in a multi-channel
> world, the underlying business model must change.
> Rather than exclusivity, the economic basis must shift
> to payments for what a distributor actually delivers.
> This would likely lead to ala carte pricing, where you
> pay only for the channels you want.

Seems to me that the rest of the business world is full
of different sorts of redistribution arrangements. The
advantage of an OTA distribution infrastructure is that
you don't need to make it work like cable or DBS. It can
be exclusive yet at the same time competitive, because
multiple exclusive networks can co-exist throughout a
market. I don't see why this feature of OTA distribution
should be discounted.

Bert
 
 
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