[opendtv] Re: Migration to virtual MVPDs

  • From: Albert Manfredi <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Sat, 5 Jul 2014 19:44:23 -0400

Craig Birkmaier wrote:

> But it assumes that someone is willing the break the bundle.

Yes Craig. That's how competition works. One player figures out before the 
others that without the local monopolies, big bucks can be made by offering 
more options than the slow-witted competition, and lo and behold, people come 
flocking to him. From all over the world, potentially.

You seem to have trouble understanding these trend lines. Already now, even 
without the existence of true virtual MVPDs, plenty of the younger generation 
(those most coveted by the marketing types) are bailing out. I keep asking you, 
do you really think that ESPN and HBO, and other similar holdouts, are deaf and 
dumb?

> Jeff Bewkes of Time Warner just pointed out the importance of

> this shift: “You have demand for the programming beginning on

> demand, not just here but around the world, which is bringing

> billions more viewers into the process,”

Yes, exactly, that is one aspect of this shift. He has also figured out that 
people around the world are into this, quelle surprise, and that "billions more 
viewers" means big bucks. Isn't this what I've been telling you all along?

> The trend is real and growing - just look at the growth of

> subscribers at Netflix. Then consider the reality that the

> majority of these subscribers ALSO subscribe to a MVPD

No, this is where you lose yourself in legacy thinking. The reality is, an 
increasing (not decreasing) number of people are finding it acceptable to 
subscribe to Netflix and other such, **and not** continue the MVPD 
subscription. That's the trend line to look at, Craig. The content owners are 
looking at these trend lines, they aren't stuck in the reality of 1985.

When you say, "the reality that the majority ...," surely you can see the flaw 
in that logic, no? The only thing that matters is to appreciate how that 
"majority" is changing over time. If that "majority" was 90 percent a couple of 
years ago, and then it becomes 50.00001 percent today, do you not see that your 
analysis of the situation misses the mark?

Bewkes seems to get it.

Bert                                       
 
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