[opendtv] Re: News: Apple, Google Asked to Pay Up as Operators Face Data

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Wed, 15 Dec 2010 07:53:46 -0500

At 6:24 PM -0600 12/14/10, Manfredi, Albert E wrote:
This doesn't come close to describing a situation where government regulation prevents competition. It is the MVPD industry and content industry that set the rates, and new entrants in the field, like FiOS, AppleTV, Netflix, Hulu Premium, and the rest, are going to set their rates to similar levels, unless CONSUMERS rebel. If consumers are lemmings, they deserve to pay ever inceasing fees. 

So this rhetoric:


 Nothing is chiseled in stone these days, except that when we depend
 on government regulated oligopolies we will pay monopoly rates, and
 new competitors will struggle to establish more affordable
 alternatives.


just doesn't sound credible.


OK Bert. Explain me this...
Here in the U.S a very large percentage of the most desired content is only available via an MVPD, which is franchised and regulated by some level of government. Although there is "perceived competition," i.e. cable, DBS, and in some cases a telco video service, ALL of these services are priced at comparable levels. All of these services force you to buy a bundle of stuff that includes channels you want and channel you don't watch.
In the U.S. the same content oligopoly that owns 90% of what we watch on the MVPDs is now trying to control access to, and is demanding payment for content that they give away via their own web sites. In short they are using their monopoly powers to limit competition via the new medium of Internet distribution.
In the U.K a very large percentage of the most desired content is available via a FREE over the air DTV service and now via satellite as well (dittos for New Zealand). Demand is high to get content onto these services and the content owner PAY for the privilege. And a new joint venture in the U.K. - Project Canvas - is developing an Internet streaming/download service that parallels Freeview.
Just to make sure you don't try to smoke us with the U.K. TV tax argument, please take into consideration that the TV license is about $227, while the average U.S. cable bill is $75/mo ($900/yr). And MVPD rates in the U.S. increase at least 5% every year, far exceeding the inflation rate. I humbly submit that this is a classic example of monopoly rents. 

Regards
Craig
So please explain how this is possible and how the "competitive U.S. marketplace" is operating to benefit consumers... 

Regards
Craig


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