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

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Sun, 25 Jul 2010 10:00:29 -0400

At 7:56 PM -0400 7/24/10, Albert Manfredi wrote:

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.
No, that's because this is the business model that the networks and the FCC created. It has ALWAYS been important to the politicians that they have an electronic path into every home, and broadcasting is their chosen path. The fact that the regulators decided to limit the number of stations any one entity could own has no bearing on the outcome, except to spread the wealth around a little and limit the power of any one entity.
The congloms (the broadcast networks) are not going around the system. They created the system.
If the FCC DID allow the congloms or some other third party to own a national broadcast footprint, do you really think the public would benefit? They DID remove most of the caps on radio and look what happened. Clear Channel bought up many markets, fired most of the local staff, moved to regional operations, and reduced the amount of localism and access for emergency messages. 


 > 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. 

And less overhead typically results in what?

A better deal for the public?
Higher profits for the company reducing overhead? Or survival in a declining market.
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. 



And what you are suggesting would further tilt the scale to the supply side.

Regards
Craig


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