[opendtv] Re: 5 Reasons Why Apple TV Is (Still) Boring

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Fri, 10 Sep 2010 17:24:55 -0500

Craig Birkmaier wrote:

> The FCC absolutely dropped the ball with respect to cable. They had
> the authorization and mandate from Congress to open up the market and
> they have done nothing.
>
> Then again, they did exactly what they did with the DTV transition.
> They let the industry they regulate create the standard with virtually
> no input from the FCC. In the case of cable, they let Cable Labs
> create the standard and then watched as the Cable industry thumbed
> their nose at the FCC.

I have no problem at all, quite the opposite actually, with the FCC allowing 
the industries to create their own standards. That's how the IETF works, for 
example. My problem is when anti-competitive industries, typically utilities 
but MVPDs also qualify, thumb their noses at the standards. Obviously, OTA TV 
could not do so, simply because the OTA infrastructure is unwalled. Multiple 
"service providers" must coexist in the OTA environment. So they benefit from 
working standards.

>> Imagine the uproar if your local power company had the option of
>> feeding your home with 270V and 75 Hz, just so they could then
>> mandate that you use their appliances and/or their various
>> transformers and phase converters.
>
> Imagine how absurd your statement is...

Imagine how you still don't get it. The reason standards are hard to push when 
you're tied to an umbillical is that the umbillical service can decide, the day 
after the standard is signed, to change their protocol. If you don't have 
strict regulation, or customers that would rampage in the streets, you cannot 
avoid this. The service provider will keep things walled up if he has the 
option.

> I don't have a problem renting my DVR from the cable system. I have
> a problem paying subscriber fees for all the channels I don't watch.

The two are linked, Craig. The content owner can ask whatever he wants, as can 
the service provider, when they have a captive audience. You either pay 
subscriber fees for as many channels as the umbillical can get away with, or 
you get a dark screen. You signed on the dotted line.

> By the way, many sports fanatics spend more than $100/mo. paying for
> every available sports channel and exclusive services like NFL Prime
> Ticket from DirecTV.

And they should. And the sports franchises should continue to ask for more, and 
their players to make more. Because there are enough people that are willing to 
shell out that cash. This is how our market works, Craig. Or did you think that 
the price charged was tied only to cost?

> We have already seen what happens when broadcasters pay too much for
> exclusive rights to sports. It killed OnDigital,

Because the Brit consumers showed restraint. Over here, just like you said 
above, the same fanatics would just shell out more cash.

> Unfortunately, MVPD service has become a necessity for many people,

I don't buy it. The vast majority are simply willing to pay. The vast majority 
could instead receive OTA, and were doing so when cable arrived, but they 
simply don't want to. If this very vast majority showed some tiny measure of 
retsraint, you'd see more interest in the FOTA medium, or even the Internet, by 
the content owners.

Bert
 
 
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