[opendtv] Re: Consolidated replies
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 15 Oct 2014 09:52:10 -0400
On Oct 13, 2014, at 8:54 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:
>
> It is a de facto monopoly, when most people only have access to one cable
> company, which they also need for broadband. It is also much like a monopoly,
> when even the FCC legislates how the content owners are required to deal with
> these very few distribution options, at any given location. The only price
> differential might be from the two DBS companies, but no broadband from them.
> So yes, in fact, the distribution companies operate like a monopoly. But
> sure, the congloms do compete.
We have a content oligopoly and a distribution oligopoly. Glad to see you
recognize they exist and that the FCC helps to prop them up.
>
>> We disagree. With Title II we will have another entrenched
>> oligopoly that is largely immune to market pressure. Bad idea.
>
> We disagree because you favor walled gardens, always have, and you'd be okay
> with the Internet becoming another example. Not classifying these guys as
> Title II has proven very recently to cause the MVPD/ISPs to try to discourage
> competition for their walled-in content resources. It's to be expected, and
> too bad it already happened.
I believe in competition Bert. But I am also a realist, and understand what we
as consumers face. Title II regulation will perpetuate the oligopolies and
frustrate new competition. It will ALSO cause prices to rise as the entrenched
ISPs will use Title II to charge access fees.
>
>> ONE MORE TIME. HBO IS NOT PART OF THE TV BUNDLE.
>
>>> That's pretty funny, Craig, because even this new offering, to
>>> compete against Netflix, consists of a bundle. They even use
>>> that a word. Amazing how you could have missed it.
Bert. Let's not confuse terminology here. Yes, there are all kinds of bundles
out there. They almost always consist of several services sold as a package
with a limited reduced price followed by a contract at a higher price. This is
true for cable, DBS, traditional telco wireline, cellular, et al.
The TV bundle is "a service," just as the HBO, Showtime or Stars premium tiers
are a service. Sometimes you have to buy both, or are offered one free or at a
reduced price to sell the other. But the premium tier services like HBO are not
part of the TV bundle, the group of cable channels, anchored by ESPN, that are
sold on top of the basic or lifeline service. It is not a coincidence that all
of the MVPDs have similar extended basic bundles - the content owners WILL NOT
sell these channels any other way - all or nothing...
Period!
>
>> Bundling is the Lingua Franca of the oligopolies.
>
> So, everything you said before, about HBO not being part of a bundle, was
> wrong. Okay. So my point continues to be, HBO, on condition of also buying
> Starz, plus Cox's proprietary on demand service, plus the retrans consent fee
> for the OTA stations, IS A BUNDLE.
>
Correct.
My AT&T cellular plan with 4 phones and. Pool of 10 GB of data is a bundle.
There are all kinds of bundles out there.
The extended basic bundle is often part of other larger bundles. For cable,
bundling of ISP and TV services is common, and they throw in landline phone
very cheap as well.
But it is the Extended Basic tier where the real money is made by the content
owners, and the MVPDs to a lesser extent.
> Craig wrote:
>> HBO NEEDS to go direct to consumer to remain competitive with
>> Netflix et al. We've been over this too many times to count.
>> But this has NOTHING TO DO with the TV bundle; it has EVERYTHING
>> to do with the fact that the Internet allows. HBO, SHOWTIME, AND
>> STARZ, to offer their entire program libraries on demand, rather
>> than. As scheduled streams.
>
> Think before you write, Craig. I know full well WHY these guys need to go
> direct to consumer, to compete against Netflix and Hulu. So no need to
> prattle on about why. Doing so makes you lose the thread.
>
> The point is, they are planning, or have done, unbundled distribution of this
> content. That's what "direct to consumer" means, Craig. My content, and I am
> *not* forcing you to buy a bunch of other people's content at the same time.
> Once again, reread the quotes. I'll keep doing this until you learn the
> meaning of English words.
We are in violent agreement on this Bert. HBO has no choice but to add direct
to consumer because of competition and improved technology.
But you will continue to see HBO used as a promotional tool by the MVPDs as the
service transitions to an Internet direct to consumer service.
> Quote 2 from mashable.com. "ESPN has a streaming platform in ESPN 3 that
> requires authentication with a cable provider, while HBO has HBO Go. Both
> platforms have been seen as ways each company could pivot into
> **direct-to-consumer offerings that would compete with companies like
> Netflix**."
>
The key word here is "could."
For HBO it is an imperative.
For ESPN it would destroy their business model, built around their anchor
position in the extended basic bundle.
> Quote 3 from Moonves on TV Week: "'Maybe we make it easier for consumers to
> get Showtime without a lot of the other stuff' - apparently referring to the
> pay TV bundle that consumers have to buy first in order to subscribe the
> premium network."
HBO = Showtime = Starz
These are all premium tier, ad free, mostly movie services that compete with
Netflix and gain value by offering large libraries of content on demand.
HBO does not equal ESPN
ESPN is a streaming service anchored by a large number of exclusive deals for
live sports content, with sports news and commentary between the live events.
If you watch an event live, you can't skip the ads - you can skip ads by
recording the DVR and waiting 15-30 minutes to start viewing.
>
> But Craig still insists:
>
>> they are not going to allow anyone to offer pieces of the bundle,
>
> THEY ARE, CRAIG!! That's what the words mean, in English.
Simply wrong.
Please tell me where I can buy ESPN 1-3, Fox News, Discovery, History Channel,
and Sun Sports (a Fox sports network) ala carte.
Regards
Craig
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