[opendtv] Re: Broadcasters, Cable Spar over Retrans

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 1 Jun 2011 16:51:10 -0500

Craig Birkmaier wrote:

> If you want to see what would happen to broadcast TV without
> regulatory intervention, try this.
>
> End retrans consent - Stations could elect must carry or depend
> on antennas.

Sorry, Craig, but that's very unfair and anti-capitalistic. As long as MVPD 
subscribers holler the minute a network channel is taken away, the networks 
have every right to demand to be compensated. If demand is high, the price goes 
up. This is very basic to capitalism. The price of a product or service is not 
strictly tied to cost of production.

We already agreed on the natural, market-regulated fix to the problem, and it 
has nothing to do with giving MVPDs a free ride. Which is what you propose.

The MVPDs, on their own accord, forced by no government or anyone else, go to a 
la carte pricing. The networks are allowed to remove their signal from any 
MVPD. The MVPD customers will be credited for any fee they paid for that 
channel. If the customers are happy to not get that TV network content, this 
can become a permanent solution.

This will put the burden of solving their differences on the two parties where 
it belongs. No need for any government involvement. If the networks can't come 
to any agreement with the MVPD in question, it is straightforward for the 
networks to use OTA and Internet media. If enough networks did that, including 
cable-only networks like Food Channel and HGTV, which had their own disputes 
with cable, they can make similar arrangements for online and OTA distribution.

This is what restores balance. The MVPDs would realize that they in fact don't 
hold all the cards either, because the more content sources jump ship, the more 
subscribers cut the cord. And that gives advertisers more interest in the OTA 
and Internet media. That's the way you get a balance, without providing 
freebies to anyone.

Bert

 
 
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