[opendtv] Re: Is 'Fair Use' in Peril?

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Thu, 2 Dec 2004 09:37:51 -0500

At 2:55 PM -0800 12/1/04, David Workman (WINDOWS MEDIA) wrote:
>Also, remember that the business model of the networks is to deliver
>advertisements to viewers.  They are NOT in the business of producing TV

This MAY have been true decades ago, but it is no longer true today.

We have had many threads here about industry consolidation, including 
the fact that 75% of the programming now carried by the networks is 
OWNED by the networks.

But there is more. You can go out and buy complete seasons of 
Seinfeld and Friends on DVD. This money also flows back to the 
companies that produced this content; when theses companies are the 
networks they generate more revenues from the content they produced, 
and these revenues have NOTHING to do with advertising (although 
advertising expenses are involved in promoting these DVDs).

>It is very expensive to produce quality programming.  If people skip
>ads, the advertisers won't pay for ad time.  If the advertisers won't
>pay, one of two things will happen: either the budgets (and resulting
>quality) of programming will go down or viewers will have to get used to
>some form of pay TV.

More an more, people are willing to pay directly to view high quality 
programming. And then theres's the whole issue of censorship. Going 
direct to the consumer allows content creators to cut out the 
middlemen and avoid content censorship issues. Ironically, we may see 
a system where TV programsd go direct to consumer first, then when 
direct sales taper off, the programs will be edited for content and 
filled with commercials for broadcast and cable network distribution. 
We are already very close to this with programs like the Sapranos and 
Sex in The City.

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