[opendtv] Re: U.S. NEEDS A CLEAR PICTURE OF WIRELESS
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Thu, 14 Jan 2010 07:22:52 -0500
But the MVPDs are not usually the content owners. I'm not sure how
this stuff works legally, but there is something called "restraint
of trade," isn't there?
I don't think that this is a restraint of trade issue. I have not
seen any broadcasters offering to pay these networks what they are
getting paid by the MVPDs.
Let's say that an ABC affiliated OTA station group wants to carry,
for instance, ABC Family (or other ABC-owned content only now seen
over MVPDs, and pay ABC a similar per-household fee as the MVPDs
pay. I picked this example only because I don't think that ABC runs
any MVPDs. I don't see how ABC can deny the request. I don't see how
MVPDs are allowed to collude with ABC, to prevent that content from
being bought at fair market value.
The broadcasters cannot afford "Fair Market Value." The broadcasters
do not currently have the ability to charge and collect subscriber
fees, and without them it is not feasible to charge enough for
advertising to pay subscriber fees and make a profit. That's why this
is not a restraint of trade issue.
And the content owners, like ABC, have no reason to make this content
available to their broadcast affiliates. It would undermine the
leverage they have with the MVPDs to collect subscriber fees; If this
content were available for free the MVPD model would fall apart.
Keep in mind Bert, that what the congloms want is to establish the
notion that we should pay for ALL content. Broadcast TV is marginally
profitable in many areas today and does not help the congloms move to
a pay to play model.
Regards
Craig
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