[opendtv] Re: Broadcasters Lobby FCC for Cross-Ownership and Duopolies

  • From: Albert Manfredi <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Sat, 24 Jul 2010 19:56:53 -0400

Craig Birkmaier wrote:
 
> Near as I can tell the broadcast networks are
> THE ONLY services that reach nearly 100% of U.S.
> homes.
 
That's because the caps don't affect them, Craig. The congloms use this strange 
affiliate model to bypass the caps. Who the caps do affect are the 
broadcasters. Those who own the OTA stations.
 
> Allowing the media congloms to own all of their
> affiliated stations would not change what people
> see. It would take some profits from the local
> markets and send them to the congloms. And it
> would eliminate thousands of jobs in what is
> left of the broadcast industry.
 
That's called, operating with less overhead costs. It is allowing the OTA 
station groups, whether owned by congloms or owned by those who care about OTA, 
to take advantage of the same economies of scale that the MVPDs can take 
advantage of.
 
> I'm not sure how this benefits anyone but the
> congloms.
 
If it benefits the consumer, it benefits the business as a whole. It restores 
competition where competition is needed. As of now, the scales are tilting to 
the supply side only.
 
>> But okay, if need be, let's see them putting 39
>> percent national caps on DBS. We'll start there.
>
> How would you cap this?
 
That was intended more as a reduxio ad absurdum, but it CAN be done. One way is 
to use the hardware as the limiting mechanism, as you suggested. Another is to 
install corporate firewalls within each DBS company. Either way, you are 
talking about making DBS less competitive, and I'm sure they won't like it.
 
Oh, and I hadn't even gotten to the local caps yet.
 
A better choice, make FOTA compete on a more level playing field.
 
Bert
                                          
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