[opendtv] Re: Broadcasters, Cable Spar over Retrans

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Fri, 3 Jun 2011 07:45:46 -0400

At 10:11 AM -0400 6/2/11, Cliff Benham wrote:

On 6/2/2011 7:58 AM, Craig Birkmaier wrote:

Broadcasters have had a free ride in the spectrum for six decades or more.


Craig, you keep saying this again and again. You know this is not true.


Actually IT IS True.
You worked the same place I did in the early 1970s, a station that got it's license ONLY by committing to deliver a large number of public service programs for which they got NO revenue whatever.
And your point is? That was the Faustian bargain the Rahall Communications agreed to to get the drop in license on Channel 10. As a result their ratings increased substantially - more than enough to offset the cost of the additional public service programming. And remember, this was a "special case." Competitors in the Tampa/St. Petersburg market were not bound by the same deal.
It is VERY important to remember that 80% OR MORE of the revenues of a TV station come from less than 1/3rd of the "broadcast day."
And it is ALSO important to note that the cost to operate a TV station (other than the electric bill) has dropped dramatically in the past three decades. This reduction in cost basis is THE PRIMARY reason for the dramatic growth in the number of TV stations in the '80s and the growth of competitive networks delivered by cable and DBS.
You probably remember the fact that Rahall could not afford new commercial 2" quad machines in 1971 (or decent cameras for that matter). So we bought 1st generation 1" helical machines to save a few bucks. But that's OK. The Rahall's made out quite well when they got permission to build a full height tower to deliver a grade A signal to their market - and then sold the station.
In fact, the the words in the FCC rules state that stations must "operate in the public interest, necessity and convenience."
Stations have lost their licenses for failing to meet their public service commitments.
This is just one example of the 'costs' paid to the government by all FCC licensed radio and television broadcasters. 

Being a broadcaster is not having a 'free' ride in any sense of the word.


Nice words, but largely meaningless.
It's a lot easier to run some PSAs and a few programs without revenue during off hours, than to spend billions on infrastructure and content creation. 

Regards
Craig


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