[opendtv] Re: Google Fiber and Verizon FiOS
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 31 Aug 2016 04:50:17 +0000
Craig Birkmaier wrote:
The take away is that you have no clue. Where Google has fiber
systems they compete for MVPD service as well
Ooops, you're right.
So what happens if you are right and the Internet video streaming
services make subscribing to a MVPD unnecessary? Or if I am right
and the content congloms take control of the MVPD bundles as they
are about to do with Hulu?
What happens, in general terms, is that a previous artifact of technological
limitations will have been eliminated. The previous artifact being, in order to
distribute a large number of TV channels, one had to rely on a one-to-all
broadcast cabled network, which had to incorporate a head-end. DBS, much the
same. That head-end was under the control of the cable or DBS network. And
more, such distribution networks had at best, in theory, a tiny amount of
competition in each neighborhood. In practice, once a household is connected,
virtually no competition. That was an artifact. It's need has been eliminated.
Now owners of content can opt to use any number of distribution sites, for all
US households, to reach as much of an audience as they can. And, these owners
of content can opt to change their arrangements whenever it makes sense for
them. The more popular "channels" will find that they can increase their
audience, if they provide flexibility to households. The not-so-popular? They
may have to charge more, because they won't get subsistence from as many
popular "channels."
The incumbents can survive selling broadband, as they have amortized
much of their investment,
Yes, incumbents always have that advantage. We know too that local
jurisdictions would not easily accept a large influx of cabled broadband
providers. And wireless has its own spectrum-related limits. So natural
monopolies will still exist, to provide broadband service anyway, except that
now they are mandated to be neutral.
and it may take years for existing MVPD subscribers to "cut the cord."
Not all that relevant, really. As we saw, the broadband providers may see an
advantage to dropping that legacy MVPD service all by themselves. And the
owners of popular content will notice that they can reacquire the cord cutters.
Bert
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