[opendtv] Re: Deloitte Puts Reality Check on SVOD | Home Media Magazine

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 21 Jan 2015 02:00:51 +0000

Craig Birkmaier wrote:

> But the traditional content owners are still VERY MUCH in control. Here
> is the view from CBS in a B&C article I posted yesterday:

> The article noted that the content owners still have the power to
> demand even higher subscriber fees, even as they make popular shows
> available via their own sites, new VMVPDs, and SVOD services.

No argument there. The point is, though, that in OTT sites, including Sling TV 
and in their own portals, the congloms are not behaving like the oligopoly you 
claim. Sure, on the legacy MVPD tiers they do, because as I've said before many 
times, they CAN.

> Later in the article Derek Baine, an analyst at SNL Kagan explained:

> Baine says that for an over-the-top service to be successful, it will need 
> shows from traditional programmers, and for those programmers, protecting 
> their traditional business is a top priority.
> 
> "They're trying to do it to get some of the cord-cutters and not cut into 
> their core audience," Baine says. "I think that basically a lot of these OTT 
> services, the ones that will be successful are the ones that are done by the 
> multichannel operators because they're going to be really careful not to 
> tread on their core customer base."

Come now, Craig. All that says is that the congloms would prefer for people to 
be loyal as you are. But at the same time, they won't let cord 
cutters/shavers/nevers simply disappear either. It's obvious that the congloms 
prefer a scheme that gives them the greatest profits, BUT according to the 
latest figures we have, people are still cutting/shaving/nevering the cord. And 
what do you think will happen as MVPD rates continue to climb?

> This is simply wrong BERT. Getting broadband does not mean it is
> adequate for mass adoption of high quality video streaming.

We've been over this too recently for anyone to have already forgotten. The 
infrastructure is growing pretty much *as fast as people are using it*, Craig. 
All those tablets and phones are already using it for TV content. No point 
repeating this vague and unsubstantiated alarmism. Or better yet, point to an 
authoritative source, before repeating this mantra.

> We've been over this too many times BERT. I can access everything you
> can.

Answer the question, Craig. Can you view full length episodes, on your AppleTV, 
iPad, or iPhone, from the FOTI conglom sites (cbs.com etc.)? Or are you forced 
onto a SVOD site for this? It's a really simple question. Don't tell my how it 
COULD POSSIBLY be done. Tell me whether it is available.

> The important part you refuse to consider is that I don't care about
> this stuff.

That's about as relevant as how much I don't care about sports. The question I 
asked you was, do you think that users of your favorite limited-use boxes are 
more or less likely to cut or shave the cord, if the ONLY sites they can 
browse, for online conglom content, are SVOD sites?

> By the way, 16:10 is more common for computer monitors,

As close as that was to 16:9, even 16:10 is ancient history for PC monitors. 
For several years now, Craig. Check it out. Also iPhones and Galaxy phones. 
16:9.

http://www.bestbuy.com/site/computer-monitors/lcd-monitors/pcmcat200900050015.c?id=pcmcat200900050015

> They subscribed to broadband because the Internet became vital to
> our lives. Not to deliver TV, but for the myriad of applications we
> use every day.

Exactly why TV is migrating there, Craig. People have that link already, so 
they use it for TV and other video. I heard just today on NPR, that among 
college grads in the DC area, 92 percent have broadband at home, and that 
watching video was a prime motivation. Plus, it wasn't even clear what they 
meant by "broadband." Possibly, with my still slow 1.8 Mb/s, I wouldn't be 
counted!

> Anything less than 5 Mbps is problematic if you are trying to
> compete with the other distribution media I mentioned above.
> We're not talking about watching a cat video on YouTube,

I watch most of my prime time TV that way, with way less than 5 Mb/s still.

Bert

 
 
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