[opendtv] Re: Pace 'turns the corner' and returns to profit
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Thu, 8 Feb 2007 20:13:20 -0500
At 3:42 PM -0800 2/8/07, Dale Kelly wrote:
John S. wrote:
I still contend that somehow, some way, the annual TV Licensing
fee is part of what makes Freeview successful.
Agree completely and don't know how it could be argued otherwise....
Dale
It is quite easy to argue otherwise.
The license fee goes to operate the BBC, which is a small part of
Freeview conten (five of the 40 free channels). Freeview is self
sustaining, even profitable, given the millions that commercial
broadcasters are pouring into the system to gain access to the
audience it attracts. BSkyB - another major partner with the BBC in
Freeview - does not receive a dime of the UK license fees.
Even if the license fees were a factor, they are chump change in
comparison to the money most U.S. homes spend each year on
multichannel TV services and direct payment for content. And then
there is the reality that we also pay a "license fee" for Public TV
in the U.S., as 15% of the operating cost of PBS is derived from the
Federal Government.
I cannot understand why it is so difficult for some to understand
that it is not only possible, but profitable to operate a free-to-air
multichannel television service. Commercial broadcasters in the U.S.
have had no problem making money selling advertising to pay for the
content they deliver. The fact is that this model still produces
billions in profits for U.S. broadcasters in the aggregate.
The Freeview business model would be a huge success in the U.S., but
it won't happen because the content and distribution companies have
been given monopoly control over TV distribution in exchange for a
bully pulpit for the politicians.
Regards
Craig
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