[opendtv] Re: I meant ESPN, not HBO

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Sat, 25 Oct 2014 00:34:36 +0000

Craig Birkmaier wrote:

> No problem. Let's add up the damage.

Already responded to that in another post. Recreating the exact bundle on OTT 
sites is not the point of this exercise. Might as well use TVE and be done with 
it. I've long understood that *if* you want all of the bundle's content, the 
existing bundle most likely *is* the cheapest way of delivering it!

> First, $10/mo is less than twice the average subscriber fee they get now.

I doubt that. The MVPDs charge about $6 for ESPN. From what I've seen here and 
there, ESPN gets something in the $4 range from the MVPDs, per sub per month. 
That's why I chose those numbers. If they charge $10, direct to consumer, they 
should come out either even or ahead. And most likely, a lot of ESPN 
aficionados can be coerced into paying a lot more than just $10.

> And you assume that everyone now paying $5+ per month will agree
> to pay $10.

That's not the issue! Everyone is now paying upwards of $100 many times, and 
all they want is maybe, broadcast channels, ESPN, HBO, and Showtime. So for 
that, they can do what I do for the broadcast channels, and pay $10 each for 
the remaining three content sources. They'll come out way under that $100.

> The content owners will not take a pay cut.

They *are* getting a pay cut now, so they will want to at least recoup their 
losses, and preferably get a raise. Can't do that by sitting still, Craig, in 
spite of what your tell us. Once again, since you seem to forget. ESPN and HBO 
are LOSING subscribers, and LOSING viewership.

> It IS happening Bert. The next step in this game is to "prove"
> that ala carte will be more expensive than staying with the
> bundle.

Obviously, a la carte is cheaper, since after all, I watch a la carte and pay 
only by viewing ads. A la carte works if you want specific content only, and 
not the fire hose. Getting water from a fire hose is most likely the cheapest 
way to get water.

Bert

 
 
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