[opendtv] Re: Distribution outside of "the bundle"

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Fri, 12 Dec 2014 10:10:34 -0500

On Dec 11, 2014, at 9:18 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx> 
wrote:
> How do you not get these things, Craig? Was Aereo not a "feature that people 
> like"?

What had Aereo got to do with this Bert? It was not a legal licensed service. 
Aereo was not sending a portion of their revenue to the content congloms. The 
content congloms shut them down.

> Did not the broadcasters bitch loudly about that? Were OTA TV network 
> channels on MVPDs not a "feature that people like"? Did the broadcasters not 
> demand extra money from MVPDs?

I think you are starting to get it Bert. All of this is about getting paid for 
content that is OFFERED FOR FREE if you use an antenna; if you include it in a 
paid service, however, the same stuff they are giving away is now worth 
billions. Go figure.

> What do these examples all have in common? It is that some "third party" is 
> making a new infinite revenue stream for themselves, without compensating the 
> owner of content that makes this new infinite revenue stream desirable.

Bull. Live streams were ALWAYS paid for by the ads they contain. If a MVPD 
deleted those ads (e.g. Dish Hopper) or replaced the ads with new ads that they 
got paid for, the content owners might have a point. But simply delivering the 
content via a wire, versus an antenna is a stretch.

But the argument was strong enough to convince their buddies in Congress to 
pass a law to cut them in on the action. Do now, the content owners get paid 
twice, and very much prefer that you DO NOT use an antenna.
> 
> We are dealing with greed all the way up the line, Craig.

Yup! This is what happens when politicians grant exemptions to anti trust laws 
to favored industries.

> In principle, any Hopper-like box SHOULD be available openly, at Best Buy, a 
> one-time expense. But no, of course not. The DBS service creates a 
> proprietary box, and then demands an infinite revenue stream for its use. 
> That's why I posted the link and pricing explanation, Craig.

Old news. By the way, Congress DID give the FCC authority to do exactly what 
you suggest in 1995, as part of the DTV authorization. Here we are 20 years 
later and little has changed.
> 
> That being the case, the content owners upstream make their own new demand. 
> You think you can get an infinite revenue stream out of what should be a 
> generic box? Guess what? As long as you're using MY content to lure people 
> in, I want a piece of that action too. Ditto with Aereo. Ditto with 
> broadcaster signals on proprietary MVPD services. Same old story time and 
> time again. One greedy step followed by another.

Something we can agree on Bert. And it's about to happen again via the 
Internet, albeit, the market for the devices to access this will be open and 
competitive for the most part. Even here, it looks like you may need a Sony 
Play Station to access their new OTT MVPD service. It won't surprise me if the 
same is true for the new DISH OTT service - lease the box from us, and we'll 
throw in some DBS channels too.

> More like, suggests they should be paying more. It means that many people are 
> WILLING to shell out that monthly fee, so you can/should therefore squeeze 
> them more. Mostly it's because of sports (80 percent of increase caused by 
> sports, we have seen). But even while that's happening, the content owners 
> see people bailing out, and are finding new ways to reach them again.

Once again Bert. The content owners have always found ways to sell their 
content, again and again. That's fundamental to their business. Nothing they 
are doing is having a significant impact on their cash cow, the bundle.

> And no, utility prices are hardly increasing at twice the rate of inflation, 
> Craig. Substantiate those absurd claims.
> 
> http://inflationdata.com/articles/inflation-adjusted-prices/electricity-price-inflation-rate/

Fair enough. 

> And that's why ISPs have to remain neutral. Unlike you, I think this is 
> essential. I have no idea why you are so willing to submit to monopolies, 
> Craig. It's uncanny.

I don't think our positions are different WRT to ISP services, although I 
believe you support Title II regulation of ISPs. If the FCC does succeed in 
applying Title II to ISPs, we will have yet another regulate monopoly.

> No, if anything, that describes your own previous distaste for bundling 
> (which you have since forgotten). My objection is more general. I see no 
> reason to become beholden to that single proprietary, monopolistic content 
> source. It's that simple.

And thus you CHOOSE to accept only that content that is available without a 
MVPD subscription. I have no problem with that. The fact that I CHOOSE to pay 
for MVPD service does not mean I support the content and distribution oligopoly 
business model; like other monopolies with which I am forced to do business 
with, it simply means I am willing to pay the price for content I cannot get 
any other way.

> Let me see, Craig. If I decide to use Netflix, does that mean I can't use 
> Hulu?

What's you point. I can get the content I want from Cox, DISH or DirecTV.

And I ALSO subscribe to Netflix.

> Does Netflix demand the use of some special rental box?

No, you need to buy a box and  good quality broadband service to access 
Netflix. But it is still a walled garden with content that cannot be accessed 
anywhere else.

> If I watch cbs.com, do they force me to subscribe to Amazon?

No. You are watching their ads.

> Name me one OTT site that decides for me what TV sources I can make use of.

Every single one, based on the content they own or license.

> Name one OTT site that is a monopoly source in a given neighborhood.

Netflix. If you want to see House of Cards, Orange is The New Black and other 
shows that are exclusive to Netflix there is no other choice.


Regards
Craig 
 
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