[opendtv] Re: A competitive marketplace
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Sat, 8 Aug 2015 09:02:18 -0400
On Aug 7, 2015, at 9:32 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:
First, everything "takes time," so that banality can be avoided. Secondly,
you keep trying to prove yourself right by redefining MVPD. It doesn't work,
Craig.
I am not redefining MVPD any more than the FCC is. Just because we are changing
the transport from dedicated MPEG TS over proprietary networks, to IP transport
over the Internet does not change the fundamental nature of the service. MVPDs
sell bundles of linear streaming channels. Maybe it would be easier for you to
grasp is we just dropped the V for virtual. A MVPD is a MVPD.
Yup. And it is likely we will see new VMVPD bundles that are more
attractive,
As you do here. Next thing you know, Netflix will creep into Craig's
definition of VMVPD.
Netflix is a SVOD service.
No linear streams. No access to live streams. Everything is on demand from
libraries of content they buy, and the libraries of original content they are
creating. The "breakthrough" shift here is that a subscriber is not strung
along, waiting a week for the next episode - entire seasons are released at one
moment in time.
Again, they are growing rapidly only because they sell neutral broadband
service. You are disingenuous to pretend otherwise, Craig. Their legacy
business is declining.
The broadcast business has been declining for more than three decades Bert. It
is STILL very profitable for broadcasters that have good content.
With 80% market share, the MVPDs can make a lot of money for many years to
come. The nature of what they sell will evolve, but linear TV will still be a
thriving business for decades.
If you feel overwhelmed by the number of monthly bills you pay over snail
mail, Craig, tired of having to go to the post office, we are already way
beyond where this. You can have your bills consolidated, for one, or you can
have them paid automatically. Sorry, but your argument is antedeluvian.
No it is just factual. Customer service organizations are expensive to operate.
It's easier now that stuff can be automated through servers, and consumers are
willing to let their credit cards be billed each month. But even Netflix has a
customer service number to call.
When a company can sell multiple services they benefit in several ways:
- one customer service organization handles multiple services and can up-sell
bundles of services
- marketing expenses are spread out over multiple services lowering costs. It
is worth adding a note that MVPDs have a built in promotional tool - they can
fill up unsold TV spot inventory with promotional ads for their services
instead of public service announcements.
- because other expenses are reduced, they can offer discount pricing for
bundles of services.
Maybe that's why you continue to miss what's going on? Neutrality is totally
relevant.
Neutrality means that other organizations, other than those who own the wire
connecting to your home, can sell TV content now.
Duh.
Neutrality means your ISP cannot block potential competitors. They can't keep
you from renting a DVD from Redbox, or buying a movie at Target either.
And neutrality also means that those own the wire to your home can also sell
TV content to other homes that their wire doesn't connect to.
No it does not. While this is technically true, they ALSO need to contractual
rights to sell content outside their franchise area.
Big sea change in what technology allows, but totally dependent on a
neutrality mandate.
For a geographically restricted MVPD to move to nation Internet distribution
they need contractual rights, not neutrality. I would add that we had
neutrality long before the FCC tried to mandate it. And we have had device
blocking even when the bits could be delivered to the device over the neutral
Internet.
Once again, as long as that pipe is a local monopoly, the owner of the pipe,
and the congloms whose content fills it up, can do whatever the heck they
please. This changes when the pipe's headend is no longer the only source of
content.
If I have to. Pay the same amount for the content as the guy with the monopoly
pipes I have no competitive advantage in terms of cost of goods sold. If I can
significantly reduce infrastructure costs relative to the facilities based
monopoly I may be able to sell cheaper. But the facilities based monopolist is
likely going to make money off of my subscribers selling broadband service at
inflated regulated monopoly prices.
I'm sure I've explained this a ton of times. ESPN agreed to unwall itself, to
go to an OTT site, for exactly this reason.
ESPN did not unwall itself.
So did HBO. Because non-luddites were getting out of their grasp.
HBO did.
More proof of Craig's circular arguments. Here's the way this went last time,
Craig. I said that MVPDs can now sell content outside their old walls. You
responded as you did just now. I responded by saying that contracts can be
rewritten any old time, as the situation changes. And you responded, "at
least you understand that things are changing."
Yes contracts can be rewritten. If the content owners WANT to eliminate the
geographic restrictions. Time will tell.
Can we move beyond? You simply have to quit arguing in circles. It's a waste
of time.
Can you stop trying to tell these oligopolies how to run their businesses?
CLUE: They are not listening to you.
You are simply wrong. Dish didn't even go to the FCC to ask any questions
about their new "VMVP" designation, they did not go to the FCC to whine about
wanting more content, and the FCC's definition will very likely include the
need to offer linear TV network content. So, sorry Craig. You are not
convincing in the least.
They did not need to go to the FCC Bert. The FCC does not sell TV content. It
does have a rule that forces the content owners to sell their programs to any
MVPD; and there is a rule making process at this moment to decide if that rule
should be extended to Virtual MVPDs.
In the absence of such a rule, Dish was able to obtain the necessary rights to
create Sling. That being said, they still do not offer the broadcast networks.
They still do not offer Fox News, and they are still adding channels to both
the core bundle and their add on mini bundles.
Regards
Craig
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