[opendtv] Re: Shifting Online, Netflix Faces New Competition

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 28 Sep 2010 18:30:45 -0500

Craig Birkmaier wrote:

> The Internet is winning because of disintemediation; the ability to cut
> out the middlemen. When producers decide to go direct to the consumer
> we will FINALLY have a real market for content; a market where the
> producer can charge as much as the market will bear.

Which would make it no different from what we have now with the middlemen, as 
far as consumers go.

And there's more. For secure distribution of such high value content, you are 
simply seeing other middlemen being created. Either it's Comcast with its new 
Internet scheme to its own subscribers, of Netflix and the other "over the top" 
services, or likely the ISPs themselves, eventually. This happens because the 
content owners want to keep control of their stuff AND because the ISPs need to 
manage the much greater bandwidth being requested in their nets.

I just don't see that your favorite independent producers will behave any 
differently, *IF* their stuff is ever going to be demanded by millions of 
people. When it gets to big distribution, that's when the middlemen are sought 
out, by these new content owners.

There have been plenty of articles describing this shift. To the consumer, it 
ends up being a toss-up.

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