[opendtv] Re: Broadcasters, Cable Spar over Retrans

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Wed, 8 Jun 2011 09:06:17 -0400

At 4:12 PM -0500 6/7/11, Manfredi, Albert E wrote:
Craig Wrote:


 > What this tells us is that a broadcast TV license has tremendous value,

 ESPECIALLY in large markets. Despite the high cost of spectrum in the
 TVstation market, the value is so great that it is still possible to
 service the debt and make a higher than U.S. average profit.
So, that's good, right? In spite of your consistent protestations that broadcasting is dying, it seems not to be. So make up your mind, Craig. Which is it? 

No it's BAD.
Ther only reason that it is possible to generate higher than average profits is that they have an protected oligopoly, and now a second revenue stream from competitors.
As Mark will tell you, IF you built a station group through acquisition of existing licenses the picture is not quite as rosy...
In a real marketplace these profit margins would not be sustainable. Or the annual practice of getting advertisers to pay more for less.
Let me see if I got this right. They "must" buy back a resource they allowed FOTA broadcasters to use, within the more restrictive guidelines that FOTA broadcasters have, and still FOTA broadcast (you claim) is very valuable, and the FCC wants to hand this public resource over to greedier walled gardens whose rate increases are more than annual inflation. Not to mention, businesses which make underhanded deals to freeze out the FOTA broadcasting that your claim is still very valuable? 

HUH?
The proposal is to take the money the telcos spend for spectrum and give a sizeable portion of it to broadcasters who are willing to give up their spectrum. They are not handing anything over; WE will pay through the nose for this spectrum as the telcos will pass these costs to consumers.
Bottom line, this is just one more form of indirect taxation. Remember, corporations and other businesses DO NOT pay any taxes; they just add this to the cost of their products and the consumer pays. 

Regards
Craig



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