[opendtv] Re: How About Portable ATSC Receivers?

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Mon, 4 Apr 2005 09:22:19 -0500

At 9:02 AM -0400 4/3/05, Tom Barry wrote:
>Then they are probably just doomed.  You would think that that NAB and
>even the large station groups would be a good place to start though. It
>has become obvious their interests no longer are aligned with the
>networks in all this.  And I think it was the networks that originally
>promised HD as the incentive to hold onto the spectrum for a couple more
>decades.

The problem is that the NAB, which is now controlled by large station 
groups on the TV side, is driven by a goal that is not that different 
than the networks - i.e. protecting the status quo.

The falling out between the Networks and the NAB was mostly related 
to further industry consolidation. The large station groups do not 
want to become the next meal for the networks; they still have decent 
bargaining power, since they deliver a large portion of the "other" 
60% of the network audience.

The networks did tell COngress that they would provide HD content, 
and to a large degree they have honored that promise. Ironically, it 
is now the marketplace that is driving the demand for HDTV.  Not for 
OTA, but for coverage of major events in HD - This is especially true 
for sports.  The cable guys have been very busy during the past few 
weeks installing HD STBs so that people can watch the NCAA Tourney in 
HD.


>But if even the NAB cannot be persuaded then I'm not sure what leverage
>anyone at a lower level will have.  Does the NAB still really believe we
>are going in the correct direction for their interests?  Or is the NAB
>willing to put up with almost anything else in their dream of
>multi-must-carry?  That might be a very risky gamble.

Not very risky. The status quo is VERY profitable. Real competition 
is likely to be much less profitable, as we squeeze the huge profit 
margins out of both the content and distribution sides of the 
business. The only gamble is having to compete in a real marketplace.

>
>And, bye the bye, is it the NAB members or the networks that really
>controls political advertising?  Where is the political clout here?

I don't think that TV controls political advertising - but they are 
the main beneficiary.

What IS very important here is the role of local stations in national 
politics. Senators run state wide, so they rely on coverage in 
multiple TV markets and national coverage from the networks and the 
24/7 cable news nets. Representatives are the ones who really rely on 
local TV, and this is where the smaller broadcasters have real clout. 
My Congressional district encompasses Gainesville and Ocala - 
Representative Sterns relies primarily on the Gainesville/Ocala 
stations for coverage. Thus he is sensitive to the needs of small 
stations in a small market (~160 rank).

Contrast this with large markets, where there are multiple 
representatives all vying for air time on the major TV stations.

The best way to get action here is to scare the hell out of the 
representatives from the smaller markets. "Imagine how hard it will 
be to get your message out if the industry consolidates into 40 
regional markets..."

Regards
Craig



 
 
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