[opendtv] Re: News: The Real Fight Over Fake News

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Mon, 9 Jun 2008 09:12:28 -0400

At 10:10 AM -0400 6/8/08, Adam Goldberg wrote:
 > With digital cable the cable company can enable/disable channels on
 an individual basis via the STB - a critical part of the two-way

Channel authorizations have NOTHING to do with the two-way 'agreement' (if
there is one).

You may be correct. The blocking may occur at the head end when you request an encrypted channel. But the result is the same - you will get a screen that asks you to contact your service provider to authorize this channel. I'm not sure where these screens are generated 9at the head end or in my cable box). Any TV with built-in two way capability will need to do the same thing.

Without expressing an opinion on a la carte, I haven't heard this argument
against it.  What they argue, I think, is that channels are cheaper in
bundles (for them, and they pass the savings on to you).

Actually I have heard both. The analog problem is well know, and the FCC has recognized that blocking individual analog channels is not technically feasible for analog cable ready TVs. The argument that you cite is being used by DBS and the cable industry despite the fact that it is largely untrue. What they are really saying - which may or may not be true - is that subscriber fees would likely go up significantly if the congloms could not get paid for every extended basic subscriber. For example, if ESPN suddenly lost half of the subscribers who are currently paying about $3.70 per month, they would probably raise the subscriber fee on those who want ESPN.

IMHO this argument only holds water for a limited number of channels. For the vast majority I believe the subscriber fees would go away, to prevent a sudden contraction in the total number of homes where that channel is available.

The best evidence to support this is that companies are bidding up the price to be seen on Freeview, knowing that they must make up these carriage costs via advertising revenue.

Regards
Craig


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