[opendtv] Re: EE Times: Set-Top Era Over, Says FCC

From: Craig Birkmaier <brewmastercraig@xxxxxxxxxx>
To: opendtv@xxxxxxxxxxxxx
Date: Sun, 31 Jan 2016 21:42:19 -0500

On Jan 31, 2016, at 7:32 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:

Craig Birkmaier wrote:

Les still operates a bunch of live linear networks;

Les is way ahead of you, Craig, although he still accommodates the hopeless
luddites, sure. Why not? They pay top dollar. Hard not to grab those dollars
as long as you can, right?

Exactly. That's why CBS is NOT going to abandon the live linear networks it
owns in our lifetimes (networks with original content, not rerun channels).
This is the market that advertisers want - no commercial skipping. The same
applies to the other broadcast networks and several dozen MVPD networks.

The live linear broadcast networks are promotional engines, not to mention
vehicles for news. About 10 million homes watch the "breakfast TV" shows on
ABC, NBC and CBS; about two million more watch the morning shows on the cable
news networks.

Les has understood that on demand and IP delivery is important, to the extent
that IP delivery and on demand will get first priority for the new Star Trek
series.

The new Star Trek series does not have the mass audience appeal needed for the
CBS network. Star Trek has a cult like following, but this series has no star
power to fall back on - it is a total makeover that is likely to have only
niche audience appeal.

Despite this, where will the series premiere? On the CBS broadcast network!

It will then move to CBS All Access to help sell subscriptions to the Star Trek
cult Luddites. This is a reflection of the promotional power of the broadcast
networks.

Why do all of the new OTT premium movie services, like HBO Now,
still offer their live linear feeds OTT?

For the hopeless luddites, who are already a minority?

No. Because many people make appointments to watch the premieres of their
favorite shows.

You do not make your most important delivery method the old linear stream
very long, if you're a smart businessman. That technique is rapidly sinking
into disuse. Too bad it's so difficult to get good up to date statistics. My
bet is that by now, more than 60-65% of TV content is consumed on demand.

You would lose that bet.

Funny that you chose not to answer the second part of the question:

Why do their OTT subscribers watch these live linear feeds when a new episode
of a popular show premieres?

I understand why you did not answer - it undermines your arguments. Here are a
few recent articles that may help you understand:

http://www.hollywoodreporter.com/live-feed/tv-ratings-game-thrones-premiere-694177
TV Ratings: 'Game of Thrones' Premiere Is HBO's Most Watched Since 'Sopranos'
Finale

Game of Thrones continues to gain momentum. HBO's most watched series returned
for its fourth season on Sunday night, breaking its previous viewership record
in the process.

The premiere garnered 6.6 million viewers during its 9 p.m. broadcast. That's
up 2.2 from last year's then-record 4.4 million premiere -- and up 900,000 from
the latest record, 5.5 million, achieved in week six of the third season. The
episode now ranks as HBO's most watched telecast since the 2007 series finale
of The Sopranos.

An encore helped Game of Thrones surge even more. 1.6 million viewers tuned in
to the 11 p.m. replay for a nightly gross of 8.2 million.

-------

Keep in mind Bert that less than 30 million homes subscribe to HBO...

You might also learn something from this article; especially the second half
that talks about issues subscribers are having with the QOS of the streaming
services.

http://www.theverge.com/2015/4/12/8396301/hbo-now-game-of-thrones-season-5-premiere

If the FCC could do something about the "illegal tying" of channels
offered by the content oligopoly,

You only perceive a "content oligopoly" because you've been well-trained in
walled garden loyalty. CBS All Access proves that "oligopoly" is only caused
by the delivery method. CBS is in cahoots with no one, for either the FOTI
cbs.com site, or for All Access. They go it alone, even if they gave the
local broadcaster a role to play as well.

This has nothing to do with loyalty Bert. It is reality.

It is the reason every MVPD service offers essentially the same extended basic
bundles. Sling TV is the exception, in large part because it is an experiment
and many networks (all of the broadcast networks) are unwilling to
participate; thus it has limited appeal.

the practice that sets the monopoly price of these bundles,

Sling TV, CBS All Access, HBO Now, all prove that the FCC is not required to
"solve" this problem, that no "monopoly price" exists. Competition
accomplishes this, when every consumer out there can benefit from one neutral
delivery medium.

FOTFL

You are hopeless. Which is why I chose not to continue the other two current
threads, and now this one.

Regards
Craig

References:
- [opendtv] Re: EE Times: Set-Top Era Over, Says FCC
  - From: Manfredi, Albert E

[opendtv] Re: EE Times: Set-Top Era Over, Says FCC

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