[opendtv] Reasons for rising MVPD prices

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Fri, 28 Nov 2014 23:26:08 +0000

Craig Birkmaier wrote:

>> Really? You think France 24 can't compete against CNN?
>
> Are you serious?
>
> They compete in the international news arena - CNN International has
> dedicated operations around the world. France 24 claims to have the
> French perspective on international news.

There's a huge difference between, say, France 24, Arirang, and Russia Today. 
France 24 has reporters everywhere, and reports the news with as little bias as 
you'd expect from the best. They also focus on certain topics for a deeper 
look, they have interviews with people of all different perspectives, and so 
on. Arirang is more of a Korean culture outlet. And Russia Today has fun taking 
jabs at the US, any chance it gets, and importantly, never criticizes Russia's 
policies. It almost seems tongue in cheek, much of the time. So yeah, I think 
that France 24 can easily replace CNN, as a 24 hour news outlet for a more or 
less western audience.

> You can't seriously believe that Americans will turn to France 24 for
> their news, unless they are looking for their perspective.

Easily. And they report quite a bit on US news. Add local news, and it's a 
perfectly viable option. And there are many other such 24 hour sources 
available, in English, from other countries' news networks.

> The most popular channels in the extended basic tier have original
> content that a significant portion of the population want.

> Many of the shows that people are watching on Netflix were originals
> from cable networks like A&E's Madmen. Fox Znews channel had the
> highest ratings on election night. And why was there such a fuss
> about the the star of Duck Dynasty?

I think you'll find that most cable cutters and shavers are happy to wait some 
time before they catch some of this "exclusive" stuff, either on Hulu/Hulu 
Plus, or on Netflix. Fox News is also available online, the only exception 
being the live stream. But there are plenty of news clips available. 
Aljazzera/English, wrt to this, went backwards, as far as I'm concerned. They 
used to be available OTA (here) and online live, and recently they hid behind 
MVPD walls. No great loss, of course, because there are viable alternatives.

As plenty of articles have pointed out, the only "exclusive" content that 
really holds this "bundle" captive would be the three specific sports I've 
mentioned. The other "exclusive" content is not "exclusive" enough, is 
available elsewhere with sometimes a short delay, does not need to be consumed 
live, and/or is replaceable with very decent alternatives, so this other 
content is having a hard time justifying the increases in "the bundle" fees.

> You can watch this stuff with an antenna.

And yet, I think you will find that in FACT, it is the main TV network content 
that people miss most from their MVPDs, when it gets interrupted. Even if it's 
also available online and with an antenna.

>> Here's the deal, Craig. In a "bundle" that has several channels
>> asking for multiple dollars per subscriber per month, a channel
>> asking for, say, $0.50 per subscriber might easily find a place.
>> And might make way much bigger profits this way, than if that
>> same content were being sold on its own merits, unbundled.
>
> It took months, but maybe he finally gets it.

It's odd how Craig loses the thread. Remember when I said that the profits made 
by HGTV or the Food Network were "fake"? Not supportable in a more open market? 
Remember when you disagreed? I was explaining why to you, Craig.

But also missed by Craig was the main point to all of this. Craig's constant 
obsession about the conglom "oligopoly" is quite misplaced. The only reason 
your cable bill keeps rising is NOT caused primarily by the congloms AT ALL. It 
is caused primarily, and surely I'm not the only one saying this, by the 
NFL/MLB/NBA. 

At best, the congloms are exploiting the fact that people like Craig exist. 
They won't let go of the monopolistic pipe, EVEN WHEN alternatives for TV 
content exist. Monopolistic pipes can determine the content "bundles" and their 
prices. Craig fails to list credible, non-sports-related "exclusive" content by 
the congloms, available only in "the bundle," that people credibly can't do 
without, because it ain't there. The most in demand conglom product in the 
basic bundle, sports aside, is, in fact, also available OTA and online. But as 
long as people demand those three sports, and the leagues keep a tight control 
of it, and as long as the older generations demand TV network content be made 
available behind MVPD walls along with those sports, the congloms and the MVPDs 
can take advantage. And why shouldn't they? It's economics 101.

Bert

 
 
----------------------------------------------------------------------
You can UNSUBSCRIBE from the OpenDTV list in two ways:

- Using the UNSUBSCRIBE command in your user configuration settings at 
FreeLists.org 

- By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word 
unsubscribe in the subject line.

Other related posts: