[opendtv] Re: Local Content Considered Key to Mobile DTV Adoption

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 21 Dec 2009 17:02:46 -0600

Craig Birkmaier wrote:

> Broadcasters cannot break out of the one program per time slot
> business model because they cannot afford to. Content costs
> money and delivering more than one program is viewed as diluting
> the audience for the one program they want you to watch.
>
> But the major reason you will not see cable networks delivered
> via FOTA DTV is that the broadcasters have no mechanism to
> collect subscriber fees. They NEED cable and DBS to collect
> retrans consent subscriber fees to keep broadcasting solvent a
> bit longer. So the possibility of a U.S. Freeview style system
> is highly unlikely, at least until broadcasting and cable as we
> know them die.

You've said exactly the same thing on multiple occasions, but when it doesn't 
make sense the first time, it continues not to make sense. OTA broadcasters 
will most liely continue to collect retrans consent fees, because the MVPDs are 
not going out of business before broadcasters do. This is all about small 
market adjustments, not all or nothing changes.

If broadcasters transmit more than one interesting stream, they will get a 
larger share of the FOTA audience, either to watch the main program, or the 
multicasts. Wow. Just like MVPDs do, but on a smaller scale.

To afford the material, they air ads. If the multicasts are the sort of MUCH 
cheaper programs you see on cable networks, don't you think it becomes easier 
for the ad revenues to cover the costs?

> And stop with this greater spectral efficiency for OTA bull.

Well, let's do the numbers, Craig. With NTSC, a local broadcaster could only 
transmit the network programming, only have the fraction of viewership 
interested in that program, and only get ad revenue from the ads airing during 
that program.

With ATSC, the local broadcaster can treansmit at least 4 programs streams, 
potentially attracting more viewers than only those interested in the "main" 
network channel, and consequently, sell more ads.

So yes, 4 streams, one of which is HDTV, plus the M/H streams, vs 1 stream 
sounds like a whole lot more spectral efficiency to me. And the white space 
argument you try to make is bogus. Withness that they are trying the same 
technique in DVB-T land.

> USDTV TRIED AND FAILED.

Obviously. People who like paying the monthly fee are a lot better off with DBS 
or cable.

> Why do you think Congress and the FCC are pushing this National
> Broadband agenda?

C'est la cause du jour, much like limiting your carbon footprint. They've 
latched onto needing more spectrum, even though the ones that know these things 
have told them it's not needed for quite some time. I see a parallel here.

Bert
 
 
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