[opendtv] Re: OTA

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Tue, 6 Mar 2012 07:08:55 -0500

At 3:40 PM -0800 3/5/12, Dale Kelly wrote:
Mark knows of which he speaks. The FCC and CE community each knew that it wouldn't work.

One could reasonably ask when broadcasting "stopped working." I don't think it happened when the transmission technology switched to ATSC.

You can go back to the early '80s, when the quality of programming began to go into the dumper, and the cable industry started investing in content. By the time the ATSC standard was approved by the FCC the"broadcast era" was already over.

This does raise an interesting question. IF the development of niche cable channels was responsible for the demise of broadcasting, then one could speculate that the best way to bring about another sea change in the TV business would be to invest in content, rather than trying to license content from the congloms.

In reality, broadcasters helped the cable networks develop an audience by reducing their investments in high quality content. Or you could say that the congloms reached the point where their business model became too expensive to support, and turned to cheaper programming and political gerrymandering to flatten out the product life curve.

It worked. The investments in network programming have declined while investments in cable networks have paid off handsomely. Meanhile the networks just keep charging more for less. Les Moonves is setting high expectations for another double digit increase in ad rates as we move into "up front" season.



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