[opendtv] Re: OTA and MVPD competition

  • From: Dan <opendtv@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Thu, 7 Feb 2008 11:37:39 -0800 (PST)

--- "Manfredi, Albert E"
<albert.e.manfredi@xxxxxxxxxx> wrote:

> Dan wrote:
> 
> > If ESPN were offered to broadcasters, then the
> amount
> > of money that cable/DBS paid would go down,
> perhaps
> > drastically. It's hard to charge a princely sum
> for
> > something and give it away at the same time.
> 
> Not really, and the reason is, spectrum. That's the
> great equalizer. OTA
> will not be able to compete with volume of
> offerings. Americans like
> volume.

I don't follow. Don't you think that if ESPN were
available for free, cable operators would be unwilling
to pay the same $3/month that they are currently
paying? It would still be worth something (many
broadcasters receive payments from cable), but surely
not as much.

If ESPN figures that they would lose more subscription
income than they would gain from an OTA outlet, then
they won't do it.

> > So, the cable programmers who are currently
> feasting
> > on subscriber revenue are not likely to gamble on
> OTA.
> 
> I thought ESPN belonged to Disney? No? I agree with
> you that if the
> content is created by a cable-only producer, of
> course it wouldn't be
> offered OTA. As long as the content is created by a
> conglom with OTA
> presence, which they mostly have, then it should be
> a matter of fair
> competition.

In principle it shouldn't make any difference. The
content provider doesn't need to own the
infrastructure. That's true for both cable and OTA.

Dan



      
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