[opendtv] Re: McAdams On: TV Everywhere, Why Aereo Wins the PR War...

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 15 Jul 2013 01:18:04 +0000

Craig Birkmaier wrote:

>> If the additional eyeballs attracted by Aereo can be quantified, and that
>> part should be well within the state of the art, all of this should be
>> simple enough.

> It may have a tiny impact on the cost per thousand viewers that broadcasters
> use to set ad rates, but is lost in the noise level when compared to the
> "buck a month" a broadcaster can collect from an MVPD service.

As you saw in another article, apparently CBS isn't getting anywhere close to 
that buck. And yet, they have survived. Your arguments have always assumed that 
FOTA TV cannot be self-sustaining, and that the major network stations only 
survive from subscription fees. I don't think that's true. Somehow, the major 
network stations have survived a very long time even while getting far less 
than the cable-only channels get, in terms of $/subscriber/month.

So, something must keep them afloat. To me, that something is ads, and showing 
evidence of additional eyeballs has to help that equation.

> Deborah was describing the problems associated with the MVPD verification
> systems used by every content owner that is requiring MVPD verification
> in order to enable OTT streaming.

Sorry, Craig, but this is another example of you projecting your long-term 
arguments into someone else's subject matter. Here is what Deborah said:

> "Rather than a single, simple, universal interface that provides TV 
> Everywhere access to all network content, each network and provider has
> to have its own."

This is not about how they get paid. This is all about the web sites you go to 
for the different networks. She wants a single Internet interface for all her 
TV content. It could not be plainer. And that's because she hasn't accepted the 
fact that TV content is conceivably no different from any other content on the 

> ALL of the businesses Bert mentions DO SHARE several common
> verification/payment systems - Visa, Mastercard, AMEX etc.

How absurd, Craig. For that matter, if the TV networks want to charge a fee for 
their content, they too can ask for a credit card. Being able to use a credit 
card doesn't result in a single universal UI for TV content. Which is what 
Deborah was bemoaning.

> Perhaps the future of "broadcasting" will involve little more than a
> office with a small studio and a few computers.
> Who needs spectrum?
> Who needs transmitters?

Right. Although it's not that you don't need these services, it's that they are 
provided in a different way. Spectrum is still needed, as capacity in the 
backhaul network and capacity in the last mile links (wired or wireless). 
Transmitters, and PVRs, are functionally replaced by servers. Just reassigning 
jobs to different devices.

Unless the broadcasters themselves own and distribute servers to the various 
ISPs in the market, that function would be taken over by the ISPs and CDNs. And 
the local broadcaster would become just a local news and weather content 


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