[opendtv] Re: NBA Signs New TV Deals With ESPN, Turner | Broadcasting & Cable

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 7 Oct 2014 22:50:49 +0000

Craig Birkmaier wrote:

> Hey BERT, your favorite content conglom personality to quote, ESPN'S
> John Skipper just added a little meat to the bones of his previous
> statements about investigating new ways to use the Internet to reach
> potential viewers

Indeed, a more interesting article by far than the one in which Sony merely 
tries to do a copy-cat number on MVPDs. That one ended as one would expect. 
Much like Verizon FiOS TV, similar prices, and probably not a huge uptake. We 
have to focus on content owners/rights holders, and what they are planning for 
the future, rather than on "me too" middleman services that aren't breaking the 
mold.

Some exerpts:

http://www.broadcastingcable.com/news/programming/nba-signs-new-tv-deals-espn-turner/134587

"There is no contradiction in continuing to enhance and buttress the current 
system by building new business and new way to reach fans," said Skipper. "We 
think they are complimentary."

Yeah, whatever. You always get this sort of rhetoric when things are about to 
change drastically. I remember IBM making just such pronouncements concerning 
its microchannel architecture of PS/2s, not long before that product line 
vanished. "We are committed to support ... " I remember Kodak making similar 
pronouncements about its film business, not long before going under. It's the 
customer base that will decide how these business models evolve, in spite of 
what the corporate heavies might "prefer to believe."

"Along with Turner's TNT and Disney's ESPN and ABC maintaining their TV rights, 
the NBA will also work with ESPN to create an over-the-top network that will 
air live games."

Aha. So here we see the NBA getting creative, much as the NFL has done. With 
ESPN this time, in an OTT service (presumably, this means independent of MVPD 
bundles, or it would have been nothing more than TVE), no mention this time of 
Verizon or other non-traditional pipes.

The good news is that this will cost the middlemen more, right? Quoting:

"The multiyear agreements are said to be worth $24 billion over the nine years, 
which would be more than double the current payouts from the two networks."

Why good news? Because it will push up the price of most basic tiers, which can 
only cause faster erosion of MVPD subscriptions. This is good news, because it 
is what motivates the owners of content to investigate innovative new business 
models, oh yeah, as the NBA, NFL, and MLS are doing.

Bert

 
 
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