[opendtv] Re: Amazon Considering Online Pay-TV Service
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Thu, 23 Jan 2014 03:34:12 +0000
Craig Birkmaier wrote:
> As Intel walks away, Amazon is said to pursue licenses to compete with
> the MVPDs.
>
> The strategy could be based on selling the service at break even or a
> loss, with profits made by selling merchandise.
Or not. Amazon doesn't have to have fleets of trucks, Craig. I think you
continue to underestimate the cost of running MVPDs, and you assume that the
connection fee listed in your monthly bill covers it all. I'll bet you that the
true costs are buried everywhere in that monthly fee you pay.
I read that story on EE Times today, about Intel getting out. And my feeling
was, finally something that makes sense. Intel SHOULD be getting out of
colluding with content owners. Amazon, on the other hand, SHOULD be competing
with MVPDs, at least when it comes to content distribution. Amazon is also a
service provider, after all. The legacy of the old model is this idea that the
underlying network service can legitimately be coupled with the content
distribution and content access control service. If anything, it is that
combination of services that may or should be reformed, over time.
By the way, you did notice the trend line for subscriptions to premium MVPD
services, in another article posted today?
Bert
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