[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 

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 

> 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.


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