[opendtv] Re: Punching Above Its Weight, Upstart Netflix Pokes at HBO - NYTimes.com
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Thu, 20 Feb 2014 02:04:44 +0000
Craig Birkmaier wrote:
> They will be one of the primary distributors of Internet TV.
"They," i.e. the MVPDs, MAY be one of many distributors of Internet TV, but not
within the confines of just their walled garden networks. If they want to
compete, that is. And there's no reason why plenty of other OTT sites can't
also get into the fray.
The OTT sites need to negotiate terms primarily with the owners of content.
That's all. (Secondarily, as we discussed, they may also offer to support
servers within ISP networks, or deal with ISPs to get adequate bandwidth
guarantees.)
The owners of content have no reason to insist on JUST getting distribution
over legacy MVPD broadcast tiers or JUST over legacy MVPD infrastructure
anymore, why should they? As long as broadband access is unblocked by ISPs, the
owners of content simply want to maximize their revenues. If the ISPs start
playing favorites, e.g. should TWC block Netflix from distribution over its
broadband service, I'm willing to bet the FCC would start clamping down big
time.
> And you are wrong about who benefits from the bundles. It is
> both the content congloms AND The MVPDs
Again repeating, not necessarily TODAY'S formulation of bundles.
For example, Viacom would most likely want bundles that include their own
content and not a lot of content from Disney or others. With many independent
OTT sites, Viacom can explore these other options.
On the other hand, MVPDs want to create bundles that attract their average
viewer, and then their niche audience, without worrying about keeping the
different content owners segregated in different bundles. Because separating
content owners in different bundles would be a royal pain for the MVPD, when
using their broadcast MPEG-2 TS (or analog) tiers.
If OTT site X promises a bundling package that Viacom likes, emphasizing their
content, there's no reason to believe Viacom would object.
Bert
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