[opendtv] Re: News: Fox Playing Hardball With Balky Affils

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 16 May 2011 15:42:11 -0500

Craig Birkmaier wrote:

> And there is a huge problem with you solution. You may get "some"
> people to use an antenna for the local broadcast signals, but the
> vast majority won't bother, or don't care about the broadcast networks.
> In the end the MVPDs will agree to the demands for higher subscriber
> fees...
>
> There is a simple reason for this; these negotiations are just a cover
> to make it look like they are trying to protect their subscribers. These
> battles provide cover for ever increasing rate - it costs the MVPDs
> NOTHING, and often let's them improve their profit margins as well.

"Huge problem?" It doesn't take but a small change in consumer behavior to make 
a real difference. Nothing in what you say explains why consumers should 
continue to leave it all up to the supply side. And, there's no reason to 
believe that what is transmitted OTA must be limited to "the broadcast 
networks."

Your arguments:

1. There is no competition because the congloms/politicians like it that way.

2. Consumers think antennas are archaic and pride themselves on their high cost 
subscriptions to anti-competitive delivery models.

3. Therefore, there is no competition.

Assume away the demand side, and your arguments work. But competition depends 
on active participation by the demand side too. If consumers are lemmings, then 
you're right, there is no need for competition. You go so far as to create 
"fashion statement" arguments, like antennas are considered archaic, to make 
sure that the demand side remain lemmings, irrelevant to any solution.

Question: do people use their cell phones indoors, if they have decent 
coverage? Answer: of course they do, and many drop their land line service 
altogether. Why can't that apply to TV? Who's to say that indoor TVs must be 
cabled in order to be cool?

> There is no competition Bert. Broadcasting is a highly play toy for the
> politicians, fed by an oligopoly that relies on the politicians to
> PROTECT them from competition.
..
> Because the congloms and the politicians are not interested in a real
> competitive marketplace.

See what I mean? You NEVER get competition, if you restrict your arguments to 
the incumbents in the supply side. It should not matter WHAT the incumbents in 
the supply side want, Craig. Duh, incumbents in the supply side always want the 
status quo.

More efficient use of spectrum means more content creators can get their stuff 
on the medium. And if consumers insist on it, rather than instinctively caving 
in to the special interests and their fast-talker agents at stores like Best 
Buy, then all consumers would benefit, as even MVPD fees would stabilize.

Bert

 
 
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