[opendtv] Re: How the dollars flow
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Sat, 26 Sep 2015 00:52:38 +0000
Craig wrote:
If the congloms went direct with the MVPDs they could control
all of the ads. Or they could do as they are doing now and allow
the cable systems to insert local ads in network programming -
this is commonplace, even for ESPN.
Finally. So once again, to the conglom, how "lucrative" retrans consent might
be to local broadcasters is a big who cares. The congloms want their pound of
flesh, they don't need to worry about how lucrative the deal might be for
someone else.
What the stations make selling ads is unrelated to the
subscriber fees they get via retransmission consent, which is
a second revenue stream - i.e. pure profit.
What the local station gets selling ads could flow direct to the conglom, if
the congloms provided their streams direct to the MVPDs. The more middlemen
there are, Craig, the less the congloms are likely to get, and/or the more
subscribers are likely to pay. You can't escape that. If a middleman makes tons
of money in the deal, but provides no added value, that means that either the
subscriber is paying more (money the MVPD in turns pays for retrans consent),
or it means that the middleman is keeping more of those retrans consent dollars
to themselves, rather than handing them over to the conglom.
All they need to do is convince the congloms to drop
affiliates and go direct through the MVPDs. Who cares about
the FOTA bottom feeders anyway...
Again, finally. And I explained many times how the congloms would support the
FOTA service. Which presumably the congloms want to do, in good part because
MVPD subscriptions are falling steadily.
I have given you the reasons why they DO NOT go direct with
the MVPDs several times. You do not pay attention.
Your reasons are specious. One reason you've repeated forever is that retrans
consent is very lucrative for local broadcasters. We're talking congloms here.
Why should they care? Another reason you give is that the local broadcaster
airs political debates and ads. Well, the national ones are transmitted by the
conglom, Craig. Local poltical ads or debates can be handled separately, as
they already are. On local cable networks (I gave the example of News Channel 8
in this market), and on subchannels of local OTA stations.
Basic/lifeline cable us about $25/mo.
How much is your DSL service?
Someone who isn't going to pay for broadband these days is likely not going to
pay for MVPD service either. He's going to use FOTA TV. And those who have
access to DSL may only be paying in the $30/mo range, which they can also use
for TV streams.
As to broadband households, current numbers are hard to come by. If, at the
beginning of 2014, it was 87%, it's very likely that now the number is over
90%. This projection claims 92.5%:
http://www.statista.com/statistics/183614/us-households-with-broadband-internet-access-since-2009/
In any event, you don't need 25 Mb/s, or whatever the FCC decides to define as
broadband, to watch TV. It all depends on the CDNs and what they decide to
accommodate.
Bert
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