[opendtv] Re: FW: USDTV Lands in Chapter 7 Bankruptcy
- From: Tom Barry <trbarry@xxxxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Wed, 12 Jul 2006 13:58:09 -0400
Manfredi, Albert E wrote:
> The point is, IMO, USDTV is 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.
The big difference is they are NOT the local monopoly established cable
system and that local monopoly does not like them competing. So just as
the broadcasters are afraid to promote OTA they are also afraid to
offend the cable system by dealing with USDTV.
I think there was a post here recently where an exec from Sinclair (??)
said a local cable company pulled x million dollars in advertising from
them because of promoting OTA.
If you are afraid to offend your competition then you must live on
crumbs until you are eaten. Or possibly to ask Congress for more
subsidies of some sort, like multi-must-carry.
> And broadcasters do compete, for OTA audience. As evidenced by the very
> interesting new lineup Fox seems to be concocting 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.)
But let's not equate local broadcasters competing with the idea of the
content cartels owning the national networks competing. The second
group has the power to more easily negotiate with cable, the first
increasingly does not.
- Tom
> Craig Birkmaier wrote:
>
>
>>>The overarching reason USDTV filed for bankruptcy is that
>>>the industry did not support the initiative, Lindsley said.
>>>I would say the industry is paralyzed by fear of stepping
>>>out and competing with cable. I don't think the industry
>>>right now is prepared to do it.
>
>
>>Who can blame broadcasters for taking advantage of the
>>infrastructure that cable brings to the table.
>
>
>>Why should broadcasters compete when they can get cable and
>>DBS to do what they cannot?
>
>
> The point is, IMO, USDTV is 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 broadcaster content, just like cable.
>
> 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 USDTV is 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.
>
> No amount of AVC/H.264 migration 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.
>
> And broadcasters do compete, for OTA audience. As evidenced by the very
> interesting new lineup Fox seems to be concocting 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.)
>
> Bert
>
>
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