[opendtv] Re: Internet pay-TV is coming. Will you care?

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 3 Feb 2014 00:54:02 +0000

Craig Birkmaier wrote:

> NO BERT. The article said:

"One thing that Internet-based TV likely won't be -- at least at first -- is 
cheaper than what you can get from the current distributors, such as cable and 
satellite companies. Content costs are on the rise for all providers."

Totally different issue. The cost of individual content, and whether or not the 
content owners stick with the now-archaic MVPD model, are two entirely 
different discussions, Craig. As is also the ultimate cost to the consumer.

Once again, it stretches credulity to think that the content owners would 
insist on the same assortment of program choices that the MVPD tiers offer now, 
when they can control their own Internet-based distribution (either from their 
own site, or a proxy of their choosing). So it's only a matter of time when the 
content owners will figure out models more lucrative to them. Viacom, for 
instance, couldn't care less whether more people are forced to pay for ESPN. 
They want more people forced to pay for CBS content, not ABC content.

> You are WRONG to believe that they will let new Internet based competitors
> undermine the MVPD model; the article explained in detail why. The fact is
> that they are using the Internet to STRENGTHEN the MVPD model, by
> requiring a MVPD subscription to view TV Everywhere.

Already not the case, Craig. The MVPD subscription is an interim step, and even 
then, the congloms are offering some of their stuff on non-MVPD sites 
**ALREADY**. Hulu Plus, Amazon, Netflix. You have to catch up with the times, 

> More middlemen do not take a dime away from the congloms.

More middlemen raise the price to the consumer and encourage cord cutting. Only 
the hopeless addicts are certainty, Craig. So more middlemen can only mean that 
the content owners have to lower their price, or that they will lose 
viewership. They can't be stubborn-stupid enough to not know this.

> And you choose NOT to watch a huge amount of content that is ONLY
> available from a MVPD.

As does the younger generation. These things happen gradually, in degrees, not 
as a big binary function, Craig. Hopeless addicts may still be counted upon to 
prop up the MVPD model, but the declining subscriptions to HBO and other 
premium MVPD channels are something that only you can ignore.

> HBO does not compete with Netflix,

Ridiculous. Of course they do, Craig. People buy HBO to watch movies. Maybe 
there are SOME addicts to HBO-unique shows, but the majority simply want to 
have movies to watch anytime. Again, you have to understand that these things 
are gradual, not binary functions. If HBO is declining, and Netflix is 
increasing sharply, you can bet the congloms are not oblivious to this trend as 
you seem to be.


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