[opendtv] Re: Local TV stations face uncertain future

  • From: Tom Barry <trbarry@xxxxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Sat, 28 Feb 2009 23:33:19 -0500

I'm probably the one that has talked most on this list of networks possibly going direct to premium providers over the last couple years. And I do believe that they could legally do that as affiliate contracts expire. This possibility can be used each time those affiliate contracts are renegotiated.


But there is still another side to this coin, in favor of the broadcasters. And that is the broadcasters still do add some value.

A network without broadcasters is just another national content provider/broker competing with USA channel or other cable channels, albeit with slightly more current viewers and name recognition. And most of these other cable channels are owned by the same few parent companies anyway.

So I don't think the networks WANT to kill OTA. They just want that eventuality covered and also used as a bargaining ploy. They want to be protected in the event OTA gradually fails but still have a lot (but maybe declining) of money invested in it.

I don't think any of them or us really can predict what's going to happen except some experimental distribution contracts will probably occur. And maybe in future affiliate negotiations the nets will insist on keeping a few more distribution options open.

- Tom


Albert Manfredi wrote:
Craig Birkmaier wrote:
I believe that one "unINTENDED consequence"
of the DTV transition was to slowly kill the
local OTA distribution platform, so that the
networks could have total control over their
content and the resulting ad revenues.
I'm not sure I understand how the networks can have "total control" of anything, if they have to rely 100 percent on the transmission networks of a handful of large MVPDs.

IMHO, the "shot heard around the world" was
the 1992 Cable Act, which gave the networks
the retransmission consent leverage they
needed to rebuild their empires. They knew
that they could take over most of the prime
cable real estate, and then off-load affiliate
compensation onto the cable systems.
The networks do have the right to benefit when their content is transmitted over MVPD nets. Seems to me that one possible fair way of compensating the networks is to give ther networks 100 percent of the ad revenues for content transmitted over MVPDs, and let the MVPD retain 100 percent of the subscription fee revenues. That would fairly compensate the networks for the increased viewership, and at the same time, the MVPDs are compensated for installing and maintaining their labor-intensive infrastructures. And Internet transmission would work in a similar way, where Internet viewership would also get factored into the number of eyeballs figure that advertizers need to pay the networks. For a scheme like this to work, the networks would have to be allowed to own their own entire nationwide OTA network, and operate it much like a nationwide mini-MVPD, and/or they could outsource the OTA medium to an OTA net provider, who is similarly free to operate as efficiently as possible. Isn't this very similar to how Euro Freeview works? Seems to me, a lot can be blamed on the overly restrictive effect of the 39 percent national cap.
The networks would love to have the same
freedom as HBO, Showtime, et al to include
nudity, sex, and language that cannot be
presented via FTA broadcasts.
I don't understand the connection. You are listing premium channels, available only with extra monthly fees. If you compare FOTA with cable channels, you have to compare it with the basic package. Are cable systems free to transmit sex, nudity, etc., on their basic tier? Bert _________________________________________________________________ Windows Live™ Contacts: Organize your contact list. http://windowslive.com/connect/post/marcusatmicrosoft.spaces.live.com-Blog-cns!503D1D86EBB2B53C!2285.entry?ocid=TXT_TAGLM_WL_UGC_Contacts_032009 ----------------------------------------------------------------------
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