[opendtv] Re: Retransmission Letters Fly on Capitol Hill
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Fri, 30 Jul 2010 15:12:24 -0500
Craig Birkmaier wrote:
> Retransmission consent payments are absurd.
No they aren't. Look at it this way. When the cable-only networks get a piece
of the ad revenues, they are also demanding a piece of the subscription fee,
right? I looked it up. Scripps was getting 25 cents of the subscription fee
previously, for the combined HGTV and Food Network transmissions on whatever
cable system was the issue. And they were demanding an increase to a total of
~$1.00 for both programs.
So, what do you expect the major congloms to get for their much higher cost
network shows? Nothing but the ad revenues? Why don't you approach Scripps with
that option?
Cable distribution is simply expensive. Everyone up the chain gets a big piece
of the action. It's up to you, the conumer, to say no, or put up and shut up.
I'll use again the example I gave you before. If I take the articles you wrote
for the publications you were contributing to, collect them under some fancy
new cover, combine other material in this new publication, and then sold it for
a very high price to a huge number of people, would you be satisfied to get
nothing at all? Or would you expect a piece of the action?
> The broadcasters have enjoyed virtually free use of the spectrum
This has nothing to do with the broadcasters, in reality. It only involves them
because the FCC (and Congress) is going on the model that broadcasters create
content. If all broadcasters were O&Os, then the picture would be clearer.
> The main reason for retrans consent is obvious. It exists because of
> the lobbying power of the broadcast industry. If the politicians
> really want the spectrum back, all they need to do is eliminate
> retrans consent, and/or impose spectrum fees like those paid by many
> other industries.
Broadcasters do pay spectrum fees, but this is besides the point anyway. If you
took away all of the OTA spectrum, the networks would lose (you say) 10 percent
of their audience. The rest would continue to get the content over cable, just
like any other cable-only network. So call it what you will, you, the addcited
MVPD subscriber, would keep paying that subscription fee kickback to the TV
networks. Maybe it wouldn't be called "retrans consent," but it would amount to
exactly the same thing.
Bert
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