[opendtv] Re: Digital Trends: ESPN may pull its finger out of the Internet-TV dam, unleash a flood of change

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 13 Feb 2014 09:00:09 -0500

There is an easy way to settle this argument Bert.

Look at the ratings.

Are the overall ratings for FOTA broadcasts higher or lower than they were 
before DTV.

It may be difficult to find these numbers, as most ratings include MVPD homes 
and now Internet catch-up services. Most of these sub-channels are not carried 
by the MVPDs, so local ratings books tell the true story.

Perhaps a broadcaster like Mark Aitken could provide some insight to some real 
numbers for some stations you receive. Perhaps not...

Regards
Craig

> On Feb 12, 2014, at 9:55 PM, "Manfredi, Albert E" 
> <albert.e.manfredi@xxxxxxxxxx> wrote:
> 
> Craig Birkmaier wrote:
> 
>> But the second tier content that fills up the multiplexes does little
>> to draw eyeballs from the more popular first tier networks.
> 
> You can't substantiate that statement. Take, for instance, our Univision 
> channel. It only attracted a Spanish speaking audience, right? Now they added 
> and English language subchannel. Do you think their audience share will go up 
> or down?
> 
> Take for example our CW channel. They added both English and a Spanish 
> language movie subchannels. Since most CW programming is for the teen crowd, 
> do you think this broadcaster made its multiplex more or less attractive?
> 
> Or take our PBS station. They added a subchannel dedicated to UK TV shows. I 
> wouldn't be a bit surprised if some of these shows won't take eyeballs away 
> from US network shows. They might just attract people who otherwise rarely 
> watch TV!
> 
> So, when you claim that the subchannels won't bring more eyeballs, I can't 
> understand what you mean. In the aggregate, probably not. Take your objection 
> to its logical limit. You seem to be arguing that it would be best to have a 
> single program on TV, or a single supermarket in your city. That's absurd. 
> Competition is increased with DTV, just as competition increases when a new 
> food market opens up in town. The fact that the incumbents don't like it 
> doesn't change ANYTHING. The fact that PROFITS don't increase doesn't change 
> anything either.
> 
>> Not all competitors profit equally.
> 
> And your point is? If the incumbent loses out to the newcomer, it's because 
> the newcomer is doing something better. The consumer wins. If the incumbent 
> and the newcomer both survive, they will only do so by constantly improving. 
> The consumer still wins. Economics 101.
> 
>> The younger folks have a good excuse to reject the bundle gouging -
>> they need jobs.
> 
> And that too doesn't change my point. If reality is that the global economy 
> has somewhat leveled the playing field, the entertainment industry is going 
> to have to adapt. If the MVPDs can't figure out how, the Internet is now 
> allowing a whole host of other players to show the way.
> 
>> They are subsidized by subscriber fees, not other channels.
> 
> No, Craig. Subsidized channels, the little niche ones, also get exposure by 
> being in a tier. When people surf channels, they catch a bit of this niche 
> program, and might just visit it again. So that exposure is subsidized by the 
> existence of desirable channels in the tier. If bundles didn't exist, I 
> repeat, the little niche programming would most likely vanish. (And never 
> mind ESPN being subsidized.)
> 
>> I have suggested for years that the less desirable channels would drop
>> subscriber fees to remain accessible to all MVPD subscribers
> 
> With what revenues? I've already responded. No subscription fee subsidy, tiny 
> ad revenues, doesn't seem like a viable business model.
> 
> Bert
> 
> 
> 
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