[opendtv] Re: Electric power as a natural monopoly

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Fri, 7 Feb 2014 00:30:54 +0000

Craig Birkmaier wrote:

> All I am saying is that the notion that utilities are natural
> monopolies has its roots in the electric power industry during
> the first decade of the 20th Century.

No matter how you keep harping on this, natural monopolies are still a fact of 

Even your example of locally-competing electric utilities is only a partial 
solution. Even if you can have two dozen different electric power generation 
plants in one city, competing to sell you power, you're still going to have 
that same local shared grid. So in fact, the company that installs and 
maintains that grid is a natural monopoly.

> The next likely move is for the FCC to require the content congloms
> to sell their programs to OTT services as they did when they opened
> up the market to the DBS services. And the likely result will be
> yet another MVPD service that charges the same (or slightly higher)
> oligopoly rents as the existing MVPD services.

Actually, no. The difference is that your location will not force you to use 
that one source of TV content any longer. If you don't like Hulu, you can look 
elsewhere. That's a huge difference. The different OTT sites will be able to 
compete on what tiers they will offer, what content to pass up entirely, how 
much a la carte, what have you. The different content owners can equally decide 
to bypass aggregation sites completely (as they already do), for any or all of 
their content.

A completely different landscape.


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