[opendtv] Re: Commissioner Copps on Internet openness

  • From: Albert Manfredi <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 23 Nov 2010 17:13:23 -0500

Craig Birkmaier wrote:
 
> This alone would not give the comglomerates power over the
> MVPDs, however, the government has allowed stations (and the
> congloms behind them) to tie carriage of other channels in
> order to carry the broadcast channel that is asking for
> compensation.
>
> This has been used to gain preferred carriage of MANY new
> NON-BROADCAST networks owned by the conglomerates.
 
Yes, we already talked about that, Craig. The fact is, the 85 or more percent 
of households who subscribe to MVPDs want THAT content. They don't know or care 
who owns it. They only know that they're willing to pay, because it's not 
available OTA.
 
> It is difficult to demonstrate how this protects over-the-air
> broadcasting.
 
It's difficult because you can't. Not unless most of the OTA broadcasters were 
also owned by congloms, which they are not.
 
> The problem is that I am being forced to pay for both broadcast
> and non-broadcast channels that I do not want. This is not competition,
> it is using the strong arm of government ...
 
No, this is you agreeing to tie yourself to that MVPD. The government didn't 
force you to do that (until the Genachowski FCC, that is). The government does 
not force the MVPDs to use the sort of content that people actually want to 
watch, Craig, nor does the government force those creating desirable content to 
get bought up by MVPDs. This is the marketplace at work.
 
> Note that Dan even objects to the notion of paying subscription fees
> for a network that carries many programs he does not want.
 
Note: unlike you, Dan doesn't become dependent to an MVPD. That's the big 
difference.
 
> The problem is that in the absence of a real market with real
> competition, the congloms can, and do, demand monopoly prices for
> content that is already paid for with advertising.
 
The problem is that there are too many who cave in. As you did. If more people 
were like Dan, the congloms would find other ways of making their content 
available. For example, they would make better use of the OTA infrastructure.
 
The simple fact is, retrans consent per se is no big burden on MVPDs. Even if 
you try to tie that into the other simple fact, that the congloms simply create 
the most desirable content. That "other" content is the reason people cavbe in 
to MVPD demands. All free market effects, Craig.
 
Bert
                                           
 
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