[opendtv] Re: Multicast must-carry

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 24 Oct 2007 14:14:32 -0400

Tom Barry wrote:

> But in this universe for most content cable the companies are
> a middle man.

Unfortunately, more than just a middle-man. *The* middle-man.

> They receive a positive sum from the customers and also a
> positive or negative sum from the content providers. This
> possible double sum doesn't bother me at all. They are just
> making a market for delivery.
> The problem with must-carry is it gives low tier
> broadcasters a free option to purchase that delivery for
> zero dollars. This makes an inefficient market since it
> gives an economic incentive to those companies that wish to
> provide material worth less than zero dollars to continue
> using resources to sell things that would otherwise not be
> produced or delivered.

This doesn't bother me so much, because lots of things fall apart when
competition becomes very difficult or impossible. These must-carry rules
are an attempt to compensate for the fact that the umbillical service
assumes what is in essence the same power as any local utility.

So sure, you get some inefficiencies. The whole system is off kilter.
Giving more say to the monopoly isn't necessarily the right solution

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