[opendtv] Re: Incrementalism
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Fri, 10 Jan 2014 01:22:41 +0000
Craig Birkmaier wrote:
> How are the networks missing the opportunity? Any content that has
> lasting value makes it to the international markets via syndication
> - they make huge profits on this.
For BOTH the US and the international markets, if the TV networks can more
directly distribute their content to people, they stand to gain more eyeballs
and to increase their profits. You posted a WSJ article that claimed that
Internet distribution, and BluRay, were the most profitable for the movie
studios. Why do you think this wouldn't apply to TV? The disk option might be
profitable, but it is NOT popular anymore with viewers. So, what does that
leave? Internet distribution = most profitable.
In truth, within the US, I can see the TV networks are aware of this, at least
somewhat. They seem to be getting beyond their insistence on just the MVPD
contract, to deliver Internet streams of special events. I'll wait until the
next winter Olympics to see for sure. Outside the US, where the networks could
potentially gain a huge following with the direct US feed, they could be
getting more of the ad revenue with fewer middlemen in the loop. Again, "most
profitable" for the movie studios, Craig. The existing mechanisms you mention
wouldn't be as profitable, and don't offer the original versions of the
programming, and don't stream to Internet toys.
> I read the article Bert. That's why I posted it.
I was wondering, because the article said exactly what I've been trying to get
across, as applied to the movie studios rather than TV networks. And for some
reason, you felt obliged to imply it was contradicting me.
> everything we wanted to watch is only available via their DVD mail
> service.
And Netflix is working hard to rectify that problem. They even had that
abortive attempt to remove their name from the DVD rental service. That's how
much they want people to stream.
> This should tell you something Bert. They created the Digital HD
> Download window to help sell more movies at a higher profit before
> packaged media release.
Again, you misunderstand what's going on. The HD ahead-of-time download is
similar to the DVD rental of years past. It is the only practical way of
distributing true HD material TODAY, to people with slower broadband links, and
before all the necessary mirrored servers are in place.
Streaming is the preferred method, however. It is easiest for the customer AND
for Netflix. They wouldn't have to distribute those STBs anymore. But true HD
streaming is not quite ready for prime time. That's all, Craig. Trends.
Bert
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