[opendtv] Re: TV is increasingly for old people

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 11 Sep 2014 23:48:49 +0000

Craig Birkmaier wrote:

> What is important to understand in all of this is that NOTHING HAS CHANGED
> with respect to the monetization of entertainment content except for the
> number of middlemen willing to get into the game.

Not "willing to get in the game," but rather that can get in the game and 
provide added value. As these new players get into the game, the old players 
either have to reinvent themselves, or they risk becoming irrelevant. A LOT has 

> The Internet is not a threat to pay TV.

The Internet is a threat to old pay TV models. I've already said a ton of times 
that the Internet can offer both pay and ad-supported TV models. But what makes 
the difference is, there is a lot more competition among portals, even pay 
portals, when using the Internet. This competition was almost totally absent in 
the days of walled garden MVPDs. So, EVEN the pay TV models have to compete 
among themselves, more so than the one local cable company competing against 

> For those willing to pay.

And it looks like you missed that too, Craig. Here is, again, the quote about 

> "The question now is how the most valuable companies in traditional 
> television will respond. ESPN, which is slowly putting some of its content 
> online, hopes millennials will eventually see the value in paying for their 
> sports programming."

Did you get the "eventually"? The paragraph does NOT say that ESPN is only 
available for an extra fee (besides the ads).

What I read is, ESPN is looking beyond the dependency on that single tethered 
medium to reach viewers, and they are acknowledging that it ain't so easy to 
create addicts these days, as it used to be. The millenials just aren't feeling 
compelled, because they don't see the monopolistic tether as their only 
possible avenue. So, ESPN is evidently trying to lure them in with ad-supported 
material, over the unwalled Internet. Used to be, people would beg the cable 
truck to stop by, to hook them up real quick. Times have changed. Don't live in 
the past, Craig.

And what could be wrong with that? It's one way to reduce the disproportionate 
incomes these pro athletes make, just as it will regulate the incomes of TV 


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