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

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Sat, 6 Dec 2014 23:12:07 -0500

On Dec 6, 2014, at 6:33 PM, Albert Manfredi <albert.e.manfredi@xxxxxxxxxx> 
wrote:
> 
> Craig wrote: > No Bert, this exclusive content is only available on a 
> parallel pipe on a > delayed basis, and at an elevated price, while it is 
> being made available to > the extended basic subscribers. Already covered 
> that. "Delayed basis," in cases like this, has almost no meaning. It is being 
> made available "on demand," which by definition will include some delay. It's 
> not being made available, for instance, after the season ends. >

Doesn't matter. If you want to watch the premiere you must watch it live on 
AMC. If you want to watch delayed, extended basic subscribers can watch it 
"free" on the AMC website, or pay about $3 per episode on a pay per view/season 
site. 

It IS being made available after the season ends on Netflix and Amazon.

And on demand does not mean the program must be delayed. Original series on 
Netflix are released as entire seasons. There is no "premiere," only VOD.

The only credible thing you have said in this thread is that it is not 
necessary to wait a year to see current season content, as was the case a 
decade ago. Almost ALL content is now available on 1-7 day delay, and for 
catch-up for a number of weeks after that. But the availability may depend on 
MVPD authentication or may require a pay per view fee - there are many choices.

> .Some progress. Good. Except that you miss the mark when you say "catch up." 
> That implies that the "normal" viewing mode is live by appointment.

Progress for who. I have said nothing new. It just takes 3-4 tries to get you 
to understand something. 

The "normal" viewing mode is ALWAYS by appointment for the premiere of almost 
all content, other than original content on Netflix and Amazon. I agree that 
many people are moving to VOD delay as their "normal" viewing method. Catch-up 
is what you see on many services - typically all episodes from the current 
season, or some number of the most recent episodes (typically 4-6 weeks). This 
is designed to let people catch-up with a series they have not watched, and the 
networks believe that once caught up a significant number of these viewers will 
become live stream viewers.

> And that is a silly pretense anymore, as we all know. Even if the majority 
> still watch TV that way, mostly out of "momentum," we all know that this is 
> changing over to VOD as being commonplace, to say the least.

Now THAT is progress on your part!

>  You WILL NOT see current season shows on these VOD > services, except for 
> the original content that Netflix and Amazon are > financing. So, when Amazon 
> carries the CURRENT SEASON of The Walking Dead, every episode, right after it 
> has aired on the cable broadcast channel, what do you call that?

An expensive season pass. It is $41.99 for the current season (5).

> > This is not a new phenomenon. Carrying content that was previously 
> > exclusive to "the bundle," on demand, independent of MVPD subscription, 
> > independent of MVPD bundling restrictions, essentially undelayed, episode 
> > by episode, is not a new phenomenon?< When was it done this way 10 years 
> > ago?

From Wiki:

> On October 12, 2005, Apple introduced iTunes 6.0, which added support for 
> purchasing and viewing of video content from the iTunes Music Store. The 
> iTunes Music Store initially offered a selection of thousands of Music Videos 
> and five TV shows, including most notably the ABC network's Lost and 
> Desperate Housewives. Disney Channel shows (The Suite Life of Zack & Cody and 
> That's So Raven) were also offered 24 hours after airing, as well as episode 
> packs from past seasons. 



> The business model and perceived value of the extended basic bundle is a 
> different market > than selling TV shows and movies.

> Once again, Craig shows a lack of understanding of the market. "Business 
> models," Craig, are an artifact, a guess, made by the supply side only, to 
> get financing for their venture.

No Bert. Business models are the way a business chooses to do business. In the 
TV content industry there are multiple business models including FOTA 
broadcasting, MVPD distribution, pay-per-view, packaged media, and SVOD.

> Business models make guesses about the demand side.

Sorry, but this is just wrong. Business models are designed to create and then 
meet the demand.

> As technology changes, Craig, business models may or may not remain valid.

Business models will always be valid. This is nothing more than a way of doing 
business. Yes, new business models can be enabled by evolving technologies.

Some examples:

Music: vinyl and radio > 8-track > audio cassette > CD and music videos (MTV) > 
Napster > iTunes > Pandora

Video: Broadcast TV > CATV > Satellite TV > VHS (buy/ rent) > cable networks > 
DVD (buy/rent/Netflix mail subscription) > Digital SD and HD (FOTA, cable DBS) 
> Internet streaming (PPV/ad supported/subscription VOD).

> The MVPD bundle business model was invented at a time when a monopolistic, 
> one-way only, broadcast only, live stream only, wideband distribution walled 
> garden was the only game in town, for TV distribution in quantities larger 
> than what the OTA spectrum could support. Those days are over.

Far from it - 85 million U.S. Homes still subscribe.

> The Internet has recently, in the past 5 years or so, been able to make that 
> type of distribution not essential anymore.

No. It has made new PPV, SVOD and ad supported delay/catch-up services 
possible. The reality that more and more popular content is moving behind pay 
walls of one type or another.

> Credibly so, as capacity of core and edge networks has passed that threshold. 
> I keep asking you about your precious business model: WHO CARES?

The content owners. It is helping them maximize profits.

> I mean that literally. Who do you think cares?

The content owners.

> Only the supply side cares, be that the MVPDs or the congloms, and the 
> congloms have figured it out by now. So stop with this mention of "business 
> model," as if it were sacrosanct.

It is.

> Stuff happens, Craig. Things change. Consumers have been rethinking their 
> "perceived value," Craig. AMC, CBS and all the main TV networks (their web 
> sites have gradually changed from weekly schedule "catch up" to more pure 
> VOD), HBO, even ESPN are taking action. Bert


Yes they are all taking actions...

To maximize revenues by keeping the live market alive (albeit on life support 
for pre produced content). 

To make their library content more accessible on demand.

To sell to as many middlemen as possible.

Regards
Craig

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