At 6:05 PM -0500 3/26/05, Manfredi, Albert E wrote: >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? Not exactly. Most of the ad revenues go to the conglomerates now. There are slots for local ad insertion into these cable channels, but that revenue goes to the cable or DBS system, or in your scenario, to the local affiliate. No net gain for the congloms there. But a potentially huge net loss. The cable companies will liekely either dupm these channels if broadcasters start to carry them, or at the very least, refuse to pay subscriber fees. This represents a potentially large loss of revenue for the conglomerates. > >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? See above. >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. Do you mean the world of free markets? The conglomerates do not operate in free markets. They have tremendous leverage because of techno-political gerrymandering. If local broadcastters decide to use the spectrum to compete with cable and DBS, the conglomerateas will lose this leverage and likely be forced to start paying for distribution, rather than greenmailing their distributors to raise profits. 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.