[opendtv] Re: FW: USDTV Lands in Chapter 7 Bankruptcy
- From: Mark Aitken <maitken@xxxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Thu, 13 Jul 2006 15:35:39 -0400
Still busy writing the book :-)
... you did hit on one important point, but I would state it a bit
differently..."the technology can be eclipsed by other factors". The
technology IS important, but may not/can not/will not stand on its own.
It may work, but just because it does does NOT mean it (necessarily)
will survive. It is but ONE of many foundational elements.
Steve Wilson wrote:
> Can anyone recommend a book that I could read that would shed some light on
> the relationships and money flows between content owners, broadcasters,
> affiliates, service providers, etc? The technology seems quite secondary as
> compared to these issues....
> Tom Barry wrote: Craig Birkmaier wrote: >By maintaining the status quo they
> protect re-transmission consent >and get the multi-channel service to handle
> the customer service and >billing. Why compete when you can lean back and
> geta check from your >competitors? But that state can only persist as long
> asthe OTA broadcasters are seen as a value added middleman between the
> networks and cable companies. The content owning networks can now easily
> switch content from OTA to cable-only channels, thus greatly limiting the
> power of the local broadcasters to negotiate at each successive renewal of
> affiliate contracts. And they can schedule every rerun season to advertise
> OTA and then switch customers to those cable channels. (anybody watched
> Psychor Kyle XY recently?) How long can this continue if the locals don't
> offer anything special besides an expiring claim they have the right. This
> declining state may continue until the content cartels are allowed to
> purchase the rest of the affiliates (I think sort of what Bert says). - Tom
> At 12:14 PM -0400 7/12/06, Manfredi, Albert E wrote: The point is, IMO,
> USDTVis the one trying to compete against cable here, not the broadcasters.
> USDTV, to an OTA broadcaster, is not a whole lot different from a cable
> system. USDTV does rent a piece of the broadcasters' transmission
> infractructure, unlike cable and DBS, but USDTV installs their own reception
> systems at customer premises, just like cable. And USDTV acquires
> broadcastercontent, just like cable. The problem, as we have discussed many
> times is that to compete effectively with cable you need to offer virtually
> the same content, at least in the extended basic tier. This is nearly
> impossible in most markets due to the limited amount of spectrum available,
> which is further reduced by the need to use in excess of 10 Mbps for the
> primary network when it is delivering HD programming. To compete effectively
> with cable, broadcasters will need to: 1. Pool ALL of their spectrum and
> develop the marketing, customer service and billing infrastructure to
> compete; 2. Use the spectrum they have much more efficiently - aka single
> frequency networks that allow improved spectrum re-use in adjacent markets;
> 3. And develop a platform that incorporates PVR capabilities to push non
> timecritical content. My take on this is that broadcasters aren't the ones
> killing USDTV, in spite of the CEO's assertion. My take on this is that
> USDTVis no different from Quiero or from ONdigital/ITV. People who want to
> subscribe to any sort of TV service prefer to go straight to cable or DBS,
> where they can begin with something cheap, maybe, but have lots of growing
> power. You're on the right track here Bert. People ARE looking for lower
> costalternatives to cable and DBS, but they are not willing to give up the
> NON-BROADCAST programming they have become addicted to. USDTV and On Digital
> failed because the content offering was too limited to justify the cost.
> Freeview has succeeded in part because of the improved channel line-up, but
> MOSTLY because it is FREE (after buying the receiver). No amount of
> AVC/H.264migration hype was capable of changing that picture for USDTV, even
> though when constrained for spectrum, of course, you look for any help you
> can get. One thing we have not mentioned is that the reason many of their
> installers had problems is that there is still a high percentage of homes
> where it is difficult to establish ATSC service. I know you will come back
> with glowing tales about the improvements in ATSC receivers, but the reality
> is that they deployed an earlier generation of receivers that did not work
> well in marginal areas. If USDTV had deployed better receivers with built in
> PVRs they could have pushed more content to subscribers, which MIGHT have
> made a difference. Too little... too late! And broadcasters do compete, for
> OTA audience. As evidenced by the very interesting new lineup Fox seems to
> beconcocting for next season, just as a "for example." If Fox thought they
> didn't need to compete for the OTA audience, why don't they go back to EDTV
> and reduce power of their transmitters? (You know, behave more like UPN,
> still impossible for me to receive in OTA digital.) Sure they do! But this
> has nothing to do with the reason they rely upon cable. The OTA audience is
> composed of a small percentage of laggards such as yourself, and a large
> percentage of bottom feeders who cannot afford a multi-channel service. But
> this audience is not sufficient to support the business. The congloms need
> the other 85% to be economically viable. By maintaining the status quo they
> protect re-transmission consent and get the multi-channel service to handle
> the customer service and billing. Why compete when you can lean back and get
> a check from your competitors? Regards Craig
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Regards,
Mark A. Aitken
Director, Advanced Technology
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