[opendtv] Re: Transition Begins?

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Fri, 20 May 2005 08:13:26 -0400

At 11:31 PM -0700 5/19/05, John Willkie wrote:
>Why in the hell do you think somebody would bid to offer free television?
>So, you are the high bidder, having outbid the other parties, and you get to
>provide (at least one SDTV-quality) stream in the free and clear?

Because the current revenues from "Free" broadcast TV operations 
generate more than $30 BILLION in annual ADVERTISING revenues?

The local stations only see about half of this, and stations in small 
markets (and independents ) see less than big market network 
affiliates, but bottom line, there are two reasons people want a 
broadcast TV license:

1. To make money

2. To evangelize a cause (mostly religious broadcasters)

If we really had a system where all you needed to do to become a 
broadcaster was to apply, the line would be a mile long. What we have 
is a real estate market, with lot's of beach front property. Although 
the government never authorized the sale of licenses to the spectrum, 
that is what we have today. Once someone has a license, they can sell 
the station, and most of the proceeds will represent the value of the 
spectrum, not the physical assets.


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