[opendtv] Re: Local TV poses hurdle to streaming services - MarketWatch

  • From: Albert Manfredi <albert.e.manfredi@xxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Sat, 5 Sep 2015 19:47:34 -0400

Craig wrote:

The stations have always been middlemen in terms of most of the content
people
want to watch. Local news and public affairs are the only value added in
terms
of programming. The big value to local communities has been the ability to
advertise and reach consumers in their market. Cable systems thrive on this
as
well

Point being, to the TV network/conglom, the OTA broadcasters were essential.
They were the only means available to get network TV shows out to people.

In the Internet era, the OTA broadcasters need to create for themselves an
equally essential role. The retrans consent role is phony make-believe, as if
that high value content were created by the local station. So no, I mean a
truly essential role. Not some trumped up role that the TV networks won't value.

And they have protected the local broadcasters from competition from other
markets, even going so far as to force the DBS systems to carry more than
1,000
local TV stations.

When you have a local monopoly walled garden distribution medium, like legacy
MVPDs, I repeat, market distortions such as these are possible. These
artificialities become way more difficult to enforce, on the 2-way, neutral
Internet. But nothing beats true added value.

So, the CONTENT created by local broadcasters is simply not the main event here.

Instead, take, for example, a new role such as the local CDN. It is analogous
to their previous role as OTA transmitters. And since a CDN has equipment
physically installed in the local ISP nets, it becomes unnecessary to beg the
govt for artificial protection from competition (from other markets).

Bert

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