[opendtv] Re: TV Ratings Have Hurt Creative Side of Television, Says Netflix Content Boss Sarandos | Variety

  • From: Albert Manfredi <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Sat, 13 Dec 2014 19:39:34 -0500

Craig wrote:

>>> And there ARE NO ALTERNATIVES for live sporting events that require
>>> a MVPD service or authentication.
>

>> And I explained this many times too, as did some of the CEOs we have heard 
>> from. Demand for live sports, baseball/basketball/US football, is basically 
>> inelastic. Therefore, the owners of that content can set whatever price they 
>> please. These guys are easy prey. They show no willingness to bail out.
>
> Because they have NO a REASON to bail out. This is the blue that holds the 
> extended basic bundle together Bert. This is content that people still make 
> appointments to watch, which is highly valuable to advertisers. The live 
> stream 
> premieres of many episodic shows in the bundle are ALSO IMPORTANT.

Whoa, what a totally bizarre line of reasoning.

If sports addicts have "no reason" to bail out of MVPD walled gardens, then it 
must mean that they are satisfied with the service and what it costs them. In 
which case, the walled gardens can keep raising prices, until they notice a 
drop in demand. That's how we set prices in the US economic system.

Like I said previously, **if** subscribership to MVPD walled gardens was still 
on the rise, or at the very least, was not on the decline, **then** the 
Moonves' and Skippers would not be brainstorming new alternatives. This 
situation, in the US, is only true now for US football/basketball/baseball 
fanatics.
You say, "they have no reason to bail"? Well then, they should be happy to pay 
the higher prices. No problem.

Bert                                       
 
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