[opendtv] Re: Freeview business model
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Mon, 29 Jan 2007 11:13:53 -0500
At 6:50 PM -0500 1/27/07, Manfredi, Albert E wrote:
But let's not make this business model question unique to broadcasting.
It's not. One could ask, for example, whether Craig expects to pay BE
magazine to distribute his articles, or the other way around. In
principle, he could be made to pay them. I don't know for sure, but I
doubt that's how it's set up right now.
There is ZERO difference between the magazine I write for and the
commercial TV business. Both need content to attract "viewers" for
the ads. Both use multiple models to pay for their content.
There would be absolutely NO INCENTIVE for me to create content for
BE if I were not paid, other than the potential benefits of exposure
of my ideas to the people who read the magazine. If on the other
hand, BE told me that I could have 5 pages each month, and all of the
revenues from any ads that I could place within these pages, then I
would have an alternative method of being compensated. This is what
happens with TV today:
The networks compensate affiliates today by providing a few ad
positions within their programming. Stations can buy syndicated
programming and sell the ads to pay for it, or they may use a hybrid
where they pay nothing for the programming, which comes partially
filled with ads, to which they add the rest to generate their
revenue. And in some cases the stations are simply paid to run the
programming (most religious broadcasts and infomercials.
The reason content networks are paying to get their content onto
Freeview is obvious. They can control how they use the channel(s) and
keep all the ad revenue they generate. Bottom line, if you can
generate more revenue than you pay to Freeview for carriage, you
should make a profit.
Regards
Craig
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