[opendtv] Re: FCC on multichannel distributor competition
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 2 Oct 2007 18:25:40 -0400
> Craig's approach is to create a similar local monopoly in
> OTA as we have with the MVPDs. Mine is to go the other way.
> Since it is impractical to have competition among cable
> systems in any given location, perhaps it is in these cable
> systems that "content and carriage" need to be strictly
> separated.
Here's a f'rinstance.
What if the umbillical services were strictly forbidden from creating
content (exception of local news and weather, perhaps), or from making
revenue from the ads in the content. What if their revenues came from
the fees they charged to the content providers, for distributing the
content, and perhaps also from a pure connection fee they charged to
subscribers.
Now the content creators would benefit from the multichannel system
simply because they get more coverage and they have more spectrum than
they can get OTA. They also benefit from any other additional
distribution medium, including their OTA medium, simply because it
allows for more eyeballs in their Nielsen ratings. Content owners get
all the ad income.
The network operators have an incentive to improve their plants, because
this allows them to offer more content choice, therefore more revenues
from the content owners. Not to mention other unrelated things, like
telephone and Internet.
This would be more in line with the original CATV systems, and I think
it could restore equilibrium. Furthermore, the affiliates, who much like
the cable systems would create only limited content (e.g. news and
weather), would have the option of renting out space just like the cable
companies do. The OEOs would do whatever the company thinks is best.
OTA, they are already competing directly with other broadcasters.
Obviously, cable and DBS would object. It gives them less of a grip. But
to me, this is how you balance out the various media.
Bert
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