[opendtv] Re: Electric power as a natural monopoly

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Sun, 16 Feb 2014 01:06:45 +0000

Craig Birkmaier wrote:

> It is hard to stomach this explanation, if you were driven out
> of business by Amazon.

No one likes to be driven out of business, Craig. I'm sure the town blacksmith 
found it hard to stomach too, when cars started showing up. I buy lots of stuff 
online specifically because it ISN'T available in stores. Take for example, an 
OTA TV PVR. Go find one at Best Buy. Instead, the guy in the blue shirt will 
try to get you stuck on an MVPD.

> But the freedom from the physical infrastructure that trolleys
> used was also a significant factor,

Trolley tracks were typically in city streets, and became a nuisance to the 
ever more numerous car users. They caused cars to lurch. Never mind their 
danger to cyclists. Trolleys also can't maneuver out of the way, so they were 
harder to deal with in traffic than dealing with buses. So they were bound to 
disappear, conspiracy or no. And whatever new trolleys are being introduced, at 
least here, are going to get their own right of way. So it's an expensive 
proposition that will NO DOUBT limit their deployment.

The important take-away being, just like trolleys would have disappeared 
anyway, the new equilibrium in retail is bound to include a lot of online 
retail. Simply because of its convenience and MUCH greater selection. Get used 
to it. And, compete online!

> You still don't get it.
> For some reason TV/movie content has remained above the fray. Nobody
> has been able to use the Internet to put a dent in the content and
> distribution oligopolies, and now the distribution oligopoly is
> becoming the ISP oligopoly,

I don't even know what you're saying here. Making good movies and TV that 
people actually seek out is expensive. You can see any number of small time 
stuff on the Internet, e.g. YouTube, and you can see lots and lots of free OR 
paid movies, on the Internet. Not put a dent on what? Netflix grows, HBO 
shrinks, cineplex audience is so-so at best most of the time, and you don't 
think this is significant?

> So please explain why these industries have proven to be immune
> from the same competitive destruction that other industries have
> experienced because of the Internet.

You still don't get it, Craig. The "destruction" is to unnecessary/obsolescent 
middlemen. Not to the content creators.

I don't know how many times I've said this. The congloms create and own the 
content. As long as they continue creating the content that people all over the 
world want to see, they can't lose. You lose yourself railing against 
"oligopolies" and get distracted from the thread!

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