[opendtv] Re: Court Tosses FCC's 'Net Neutrality' Rules
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Sat, 18 Jan 2014 06:38:10 -0500
On Jan 17, 2014, at 9:21 PM, "Manfredi, Albert E"
<albert.e.manfredi@xxxxxxxxxx> wrote:
>
> Craig Birkmaier wrote:
>
> Oh, those deep pockets. Yes, essentially you're talking about adding
> competing new OTT sites. I'm very much against the idea of equipment makers
> creating artificial walled gardens, by limiting their devices to only their
> portals. But in principle, you may be suggesting only that the Intels and the
> Microsofts create their own, competing OTT sites. Which anyone can use. If
> the latter, sure, why not?
Not necessarily. Look what Amazon has done for shopping - they have in essence
cit out the brick & mortar middlemen. Clearly the congloms and MVPDs are VERY
profitable. What would happen if one or more new competitors entered the market
with a business model that was break even or even loses money on the content,
if they make money in a related business. Perhaps Google could sell highly
targeted ads at a premium over the shot gun advertising used today?
What if the cost to gain access to a "portal" is far cheaper than the MVPDs?
Subscribers pay far more than the cost of the STB to an MVPD; what if the new
STB is $99, or FREE. Google's Chromecast is $39; Amazon sells their tablets at
cost or below.
All I am saying is what happens if someone decides to spend tens of billions to
challenge the existing oligopolies?
>
> The existing MVPDs could ALSO re-invent themselves that way. Convert their
> channel lineup into what amounts to OTT sites, available for subscription by
> anyone with a broadband connection. Compete against all the other MVPDs,
> everywhere. And in a subsequent step, free up all that bandwidth tied up in
> the broadcast streams, and make it available for IP traffic.
Moving to IP distribution is obvious. But current licenses for content are
market based. National competition is not likely from MVPDs, and we have
already established that to make this work the ISPs will need content servers
in every market.
>
> I'm sure the content owners will insist on all manner of geoblocking, for
> international markets, but imagine the possibilities. The main problem I see
> is the "vicious cycle of greed" that such potentially wonderful new schemes
> like these seem to engender. Always prevalent when TV is in the picture, not
> nearly as much with radio.
Radio had a near death experience. They fully embrace the ad supported business
model; they even use "FREE" to compete with subscription services. The TV
market got the taste of "free money" with subscriber fees AND ads...
They won't go back to a business model that only generates revenues from ads.
Regards
Craig
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