[opendtv] Re: Collusion
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Mon, 30 May 2011 22:37:35 -0400
At 5:22 PM -0500 5/30/11, Manfredi, Albert E wrote:
The difference is the extent to which one scheme tethers you. Paying
for something when you buy it, rather than being tied to the
permanent sucking sound. The marketplace, in fact, has not gone to
satellite radio in a huge way, so it's simply obnoxious when a car
company makes that your only option, when a decent alternative
exists. But like I said, there are other car companies, so this is
not a big deal.
Clearly GM and others want to sell services that can produce "revenue
after the sale." The radio in most new models is becoming an
"infotainment" system, with a high resolution console display,
navigation features, entertainment and even Internet access.
While GM includes XM Radio, XM Nav and OnStar capabilities in most
models now, the buyer is not obligated to subscribe to any of them.
AM/FM and CD players are also standard.
HD Radio is free, and radio broadcasters are trying hard to get the
message out that you don't need another subscription to be
entertained in your new car.
Nevertheless, BOTH Broadcasters and XM are sucking wind because
consumers now carry their music with them, and soon will have access
to their music lockers in the cloud. Consider these paragraphs from
the web page promoting the new Chevy Cruz (a low cost, high mileage
compact):
Hands-free and more
Bluetooth® wireless technology for select phones comes standard in
2LT and LTZ and is available in every other Cruze model. Take all
your calls with one simple touch of a button on the convenient
steering wheel-mounted controls.
USB Port
The USB port, standard in 2LT and LTZ and available in every other
Cruze model, connects your MP3 player to the audio system. You can
even plug in a music-loaded flash drive into the USB port and jam
while you're hitting the road.
The world is changing Bert.
"This is not your fathers car radio."
Parenthetically, listening to MP3 players or iPods is not a
replacement for radio, unless your recorded material can somehow
provide real time traffic, weather, and news. Some of these players,
I think the most recent Zune does offer built-in HD Radio, by the
way.
YUP. The Zune is really tearing it up in the marketplace...
Real time traffic is now a "crowd sourced" app.
Want to see the latest satellite or weather radar imagery?
And the last time I checked, most AM and FM stations still delivered
news. But they may not offer the news you are searching for...
The world is changing Bert.
Radio has competition in today's mobile world.
Yes there are issues with overbuilding and duplication of expensive
infrastructure.
That's all that matters. All the rest is pointless words. We are
talking about services that cannot duplicate their infrastructure
credibly, so they have to be regulated. No point going on and on
about this.
WRONG.
We are talking about industries and services that ENJOY their status
as regulated monopolies and oligopolies. They enjoy the protection
from competition. They have no reason to work together as an industry
to leverage expensive infrastructure components.
At least that used to be the case.
But the myth of natural monopolies has now been exposed for what it is...
COLUSION.
Broadband was originally a case of attempting to force the company
that built the infrastructure to share it with Johnny-come-latelies.
Obviously, that wasn't going to work, so the only other alternative
of the time, cable, got a virtual broadband monopoly there, for a
few years. ADSL didn't take off until the telcos could retain the
rights to their infrastructure. Now with wireless broadband, that
equation can change, hopefully will. So competition can work, and
regulation of prices isn't necessary.
Then why do we need Net Neutrality regulations?
Or for that matter, why do we need an FCC at all?
The same is true for any utility. California is now deregulating the
electric industry. Everyone is allowed to sell power through a common grid.
You still need the monopoly for the grid. As a consumer, you don't
have the freedom to connect to different companies' power grids,
right? That hookup cost still has to be regulated, until someone
figures out how multiple grids can coexist in any given neighborhood.
No Bert. You need to isolate the components of the system and share
the costs of building and maintaining the parts that are resource
intensive and unnecessary to duplicate. In a competitive marketplace
this happens all the time; in a regulated marketplace we pay for
infrastructure that is not even being used like the dark fiber in my
front yard.
The world is changing Bert.
Natural monopolies INCREASE the cost of the services they deliver
because they CAN, and they need to give the regulators a cut of the
action.
>> For example, when you complain about retrans consent fees. Forgive me but
I have to say this. The cost of rising retrans consent fees couldn't
happen to a more deserving person. Know what I mean?
Sorry Bert, I don't understand.
Are you saying that we deserve to pay higher than free market rates for
electricity, water, and telephony?
I'm saying, those who spend years and years championing the cause of
walled gardens deserve to pay the price. Electricity and water are
walled, and uncompetitive, so they are strictly regulated. So that's
a different matter. But TV walled gardens are numerous enough to not
have to be strictly regulated. But the are still walled in, they
still tether you to control you. So if you like that distribution
model so much, then feel free to pay the price. Else resist, and
then see how the options emerge.
These are NOT different matters. They are all connected by the common
belief that natural monopolies provide a benefit, which they do. But
that benefit is not for the consumer. It is for the regulators and
the regulated.
As long as the politicians allow the media conglomerates and their
content partners in Hollywood and college/professional sports, to
operate as oligopolies, the walls are likely to remain.
Fortunately the world is changing Bert.
Better options are beginning to emerge.
Regards
Craig
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