[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 22:26:04 +0000

Craig Birkmaier wrote:

> It stretches credulity to see that you still do not understand why the
> congloms prop up the MVPD  bundles.

Because I see the trends, Craig. For example, MVPD subscriptions are no longer 
the only accounts CBS and ABC (and maybe others - too lazy to verify) will 
accept, to watch online content they don't post FOTI. For some reason, you feel 
free to ignore such significant trends. In the ABC FAQ for online viewing, for 
example, they say that more options are on the way, and they also say:

"Many new episodes are also available with a subscription to Hulu Plus, or for 
purchase on iTunes and Amazon Instant Video." (Otherwise, you can wait one week 
and watch the episode FOTI.) So, I see no retrenchment to the old 
technology-limited, real-time broadcast models. I do see experimentation with 
new options that have become feasible.

> You are wrong about Viacom. They fully understand that ALL of their
> "crops" grow better and produce more revenue inside the walled gardens.

Again, legacy thinking. This may have been true when walled gardens were the 
only option technically viable. It's simply not the case anymore. Individual 
congloms can of COURSE compare their prices with the prices of other congloms, 
for similar content, whether or not the old tier scheme is used. But they are 
already beyond thinking that membership to the SAME tier is necessary. This is 
as odd as your previous insistence that news programs weren't going to "need" 
HD image quality. Trends, Craig. Just about all news programs have been HD for 
years now.

>> 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.
> Really?
> Was the publishing industry not transformed by the Internet in less
> than a decade? Craig's list and other "classified ad services," drove
> a stake through the hearts of local newspapers.
> Was the music business not transformed by the Internet in less than
> a decade?

Finally. Maybe you're starting to get it, Craig. Changes are happening in TV as 
well, and only (primarily) the sports addicts can be counted upon to keep the 
old MVPD model going. That's because addicts exhibit *no* demand elasticity. 
That's why they are called addicts.


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