[opendtv] Re: Variety.com: Comcast Offers HBO Without Other Cable Channels in Bundle Aimed at Cord-Cutters and Cord-Nevers
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Sun, 23 Mar 2014 08:48:21 -0400
On Mar 22, 2014, at 6:40 PM, Albert Manfredi <albert.e.manfredi@xxxxxxxxxxx>
wrote:
>
> Craig Birkmaier wrote:
>
>> So the question is, can they keep people in a garden that has no
>> walls?
>>
>> Apparently, the answer for now is a resounding yes.
>
> What a scream. Exactly, Craig! A garden without walls. In fact, ANY NUMBER of
> gardens available to the consumer, each one without walls, each one available
> no matter where you live. The medium is neutral, hence the equation is
> completely different.
The medium is neutral Bert, but the content of the packets is not.
You could say the same for e-commerce via the Internet. Everyone has equal
access to the consumer. But Amazon is creating havoc with predatory,
monopolistic pricing policies, especially in E-books.
If you have exclusive access to something the masses want, you can charge
monopoly prices too. The music industry did it for years with Album and CD
bundling, and even with the ability to buy individual tracks from iTunes,
Amazon and others, the price is still absurdly high. Monopoly power is related
the the content of the packets, not the physical infrastructure per se',
however we pay much higher prices for broadband in the U.S., than people do in
most other parts of the world. That too is due to oligopolies propped up by
politicians.
>
>> Even the DBS systems can play this game - buy the bundle and you
>> can access the content anywhere, anytime if you have an Internet
>> connection.
>
> Making the satellite inconsequential. In essence, the DBS companies become
> precisely what I've been describing: nothing more than another web TV portal.
> (On the other hand, they COULD repurpose their satellites to optimize the
> bandwidth for satellite broadband, and that would be a completely orthogonal
> discussion.)
The cords and the satellites are still "consequential" Bert. They still deliver
the vast majority of TV bits - the Internet is not ready to handle several
hundred million HD streams during prime time. Even if it were, it does not
matter. How the MVPDs deliver the bits for the content congloms is NOT
consequential, as long as the MVPDs operate the customer service/billing
systems that delivers billions of dollars to the congloms.
You readily admit that the Internet can deliver walled garden services, but
cannot fathom the notion that these oligopolies are controlling the shift in
the underlying technologies to deliver their exclusive walled garden content.
>
>> Your arguments are based on a false premise. That the content
>> owners will cut out the bundlers.
>
> Aaargh! Content owners RECONSIDER, reformulate, yes, even offer their content
> unbundled PERHAPS. I keep showing you articles that show content owners
> discussing these options. Do you really still not get it? HBO unbundled, can
> you wrap your head around that?
Do you know when a politician is lying Bert?
As the old cliche' goes, "when you see their mouth moving."
The MVPDs told the FCC that cable card would solve the problem with tying STBs
to MVPD subscriptions...
How did that one work out?
In this case Jeff Bewkes came right out and said that you can only get HBO via
the Internet if you subscribe to HBO delivered by a pay TV service. Monopolies
and oligopolies always spin their comments to make them seem fair and open to
change. The only way to evaluate their words, however, is by judging their
actions.
>
>> Comcast has more broadband customers than cable customers.
>
> Maybe you're getting a hint of why Bewkes might want HBO to be more
> competitive against Netflix. Put yourself in the place of a content owner
> like Bewkes. He sees more and more MVPD customers no longer capable of
> accessing HBO content, because they have opted out of that old MVPD model.
> BECAUSE these customeres have other portals that suit their wants. What's
> Bewkes going to do? Stay stubbornly married to his old faithful MVPD bundles?
> Or explore new alternatives?
HBO DOES NOT compete with Netflix. Netflix pays them for retread HBO content.
HBO provides early access to new Hollywood movie releases and critically
acclaimed original content - content that eventually moves into syndication,
via second tier services like Netflix. HBO cost almost twice as much as Netflix.
By expanding the limited appointment TV cord HBO service to become a Internet
VOD service, HBO is significantly enhancing the perceived value of an HBO
subscription. If you don't believe me, just look at the crappy selection of
worn out movie titles offered by the Netflix streaming service. You have to pay
extra for the Netflix DVD service, and endure the hassles of using snail mail
for delivery, in order to get access to the newer movies that HBO offers.
>
> You *need* to get past the walled garden mentality, Craig. The false premise
> is yours, Craig.
Reality is on my side Bert.
Regards
Craig
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