[opendtv] Re: Compensation for content
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Mon, 7 Jul 2014 00:39:56 +0000
Craig Birkmaier wrote:
> The basis of your argument is that the FOTA content carried by MVPDs
> is attracting more subscribers to the service. This argument has
> some fundamental problems.
Might have problems, but it's undoubtedly true. Especially before online
streaming was possible. More people watch those channels than any other single
channels, right? And these subscribers are known to wail loudly if the cable
system drops one of those TV network channels.
> Thus more than 90% of subscribers are paying significantly more
> for "the bundle," which does not include FOTA stations, but does
> include many off-air reruns.
Not a convincing argument at all, for your side anyway. Subscribers pay more
for the non-FOTA channels, yes, **because** they already get the FOTA channels
in their basic tier! And the broadcasters are therefore understandably annoyed,
since their content (well, let's be honest, the content of their affiliated
network) is pretty much the highest quality stuff the MVPD carries.
> Much of the most valuable content offered by broadcasters is now
> available on a delayed VOD basis via the Internet
I think I know this, Craig. Fact is, most people still don't get TV over the
Internet, and boxes like AppleTV and Roku hardly help in this regard. They
limit what you can get. I think the best bet for TV network content, for these
limited boxes, is probably Hulu Plus, which includes the basic Hulu choices
too. But Hulu does not carry all network TV. So these boxes deliberately make
it hard for people. (How many times have we been over this?
> And then there is the "minor" issue that the most valuable network
> content commands SIGNIFICANTLY MORE compensation than ad supported
> cable networks.
I already said that the broadcasters have a legitimate point, if they say that
their stuff should get at least as much subscription price compensation as the
ad-supported MVPD-only content. I didn't say as much as, say, HBO.
> Retransmission consent dollars are on top of all of this, and are
> a significant factor in the latest round of price increases for
> MVPD service.
When these retrains consent fights started, a few years ago, I seem to remember
that the TV broadcasters were getting either no subscription fee kickbacks, or
no more than channels like the Food Network. I seem to remember Fox complaining
about this, and at the time I thought, yeah, they have a point. So how about
some real numbers? I think they're hard to come by. It's just when the
> Just to be fair, the FCC could give local broadcasters a protection
> period on MVPD systems - say ten years before the network could
> become just another cable network without distributing through
> affiliates.
Hey Craig. We're beyond that now, for heaven's sake. This is the Internet era.
Bert
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