[opendtv] =?utf-8?Q?Re:_[opendtv]_Re:_Netflix_Is_6%_of_TV_Business,_43%_of? =?utf-8?Q?_Ratings_Decline_—_Nathanson_|_Re/code?Date: Wed, 6 May 2015 09:06:54 -0400

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>

On May 5, 2015, at 8:59 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:

Read what I wrote, Craig. I'm not an MVPD subscriber, and you couldn't use an
antenna if your life depended on it!

I did and I have. I bought an indoor antenna to see what I can receive in this
area. It worked for some, but not all stations. The problem here is I have
towers to the north,
west/southwest and south. If I ever drop Cox I would install a small outdoor
antenna for local stations.

In practice, the vast majority of MVPD subscribers, ante-Internet, had that
one cable or DBS link as their sole source of TV content. Including
syndicated shows.

True. No need for an antenna.

Cable and DBS subscribers insisted on getting local OTA channels from the
MVPD pipe, just to drive that point home.

Insist is a strong word, and far from correct. It is the broadcasters who
insist on being carried by the MVPDs. The FCC helped them in the 1980's with
must carry. The 1992 Cable act added retransmission consent, which the
broadcasters insisted was necessary, as they wanted subscriber fees too. But
yes, subscribers want the broadcast networks too, as is evident whenever
content is pulled in retransmission consent battles.

Syndicated and other programming. Don’t forget, also 24 hour weather and 24
hour news channels, and 24 hour movie channels. And 24 hour shopping
channels. And BBC shows. It's not JUST syndicated shows. Which is also what
made cable attractive to begin with, and which is also what evidently makes
Netflix attractive too.

Yes, the libraries of old shows still have value. Especially now that they can
be accessed on demand without commercials.

You can't have it both ways, Craig, try as you might. OTA DTV makes OTA TV
more similar to cable TV than it was in the NTSC era.

At the margins yes. As you note above you have more options that mirror content
available from the MVPDs. What you do not have, however, is THE CONTENT from
the MVPDs. If anything, those who rely on antennas have less quality options
today as so much high value content has moved behind the pay walls.

Cord cutters seem to want this as an adjunct to their SVOD options (SVOD
options deliberately limited by the typical Roku and Apple TV boxes).

Perhaps. Many cord cutters have little interest in dealing with an antenna, or
in the commercial laden content offered by the broadcasters. They are content
with Netflix and other OVD options.

So, this much expanded choice, available OTA, is a Good Thing for consumers,
and definitely a must-have for OTA TV to attract more viewership, as it has
been.

Sorry Bert, but let's be accurate. It is true that there are more homes using
antennas, but it is also true that the ratings for most network content are
down overall. This is to be expected, as 80-85% of homes do not use antennas,
and many of the homes that do are watching OVD services.

With the spectrum auctions looming, reducing spectral efficiency for OTA
would not be good. As long as broadcasters actually broadcast, they need that
spectral efficiency.

No, they need compelling content to attract viewers.

Again, you can't argue from both sides and sound credible, Craig. First,
we're not talking just syndicated shows. Secondly, we have read that
syndicated shows are one huge attraction for Netflix, and that the congloms
are rethinking their strategy now. So all the extra choice, and plenty of
channel surfing opportunities, were no doubt a draw to cable, back in the
NTSC era, and at least some of this extra choice is a draw to OTA TV today.

Netflix is growing its subscriber base, like HBO, by creating exclusive content
that is not available anywhere else. Yes, having libraries of popular
syndicated shows is important. Even HBO is now considering adding more non-HBO
content to HBO Now.

Cable grew because of exclusive content not available OTA. Even you argue about
the importance of ESPN to the MVPD bundles and the new slim bundles. This is
also true for TNT, A&E, the Discovery Networks, Disney Channels, Scripps Howard
Networks, et al.

Very little of this content is available FOTA.

Regards
Craig


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  • » [opendtv] =?utf-8?Q?Re:_[opendtv]_Re:_Netflix_Is_6%_of_TV_Business,_43%_of? =?utf-8?Q?_Ratings_Decline_—_Nathanson_|_Re/code?Date: Wed, 6 May 2015 09:06:54 -0400 - Craig Birkmaier