[opendtv] Re: Incrementalism

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 13 Jan 2014 09:21:52 -0500

> On Jan 12, 2014, at 8:47 PM, "Manfredi, Albert E" 
> <albert.e.manfredi@xxxxxxxxxx> 
> 
> We were talking about international distribution of US network shows, which 
> I'm assuming would primarily be on demand, Craig. Just like the way I watch 
> most non-news TV.

O.K.

So why would the networks let their most valuable assets be accessed by a small 
percentage of viewers, thus undercutting the release window for these shows by 
the international broadcasters who license them?

I can see the networks allowing the licensed broadcasters stream these shows 
AFTER they have been aired on the international TV networks, but not before.

> Really? You think foreign markets don't have prime time? The US shows would 
> be time-shifted naturally, by virtue of the fact that they are VOD. But you 
> missed the point I was making (again):

Yes Bert, international broadcasters have their own "prime time," and they 
license a lot of U.S. Content to fill those broadcast hours. It makes no sense 
to undercut these license agreements, which provide access to the much larger 
TV audience, to skim a few bucks from the limited streaming audience.
> 
> Prime time is when most people watch TV. During prime time, foreign markets' 
> TV networks transmit some of their own productions and some US productions, 
> with dialog dubbed in their language. So it seems pretty obvious that a lot 
> of US TV programming is not being made available overseas. This is to rebut 
> your point that US shows "are already addressed" for overseas distribution. 
> Many are not, in fact.

Anything that can attract a decent audience IS available.

> 
>> Second you keep ignoring the fact that 92% of potential international
>> viewers do not have broadband.
> 
> You are severely challenged when it comes to numbers, eh Craig? We have 110M 
> TV households. There are 500M *more* potential TV households *today*, 
> irrespective of the millions that may not be accessible via broadband. 
> Sometimes, even a small slice of a huge pie becomes a whole lot of pie, Craig.

BILLIONS, NOT MILLIONS Bert. These ARE NOT additional households; if they have 
broadband they ALREADY have TV. I suspect that most have a MVPD subscription as 
well.

>> What is more relevant to this discussion is the growing use of
>> international content to fill up U.S. Broadcast time slots,
> 
> Thanks so much for making my point. The article you posted talks about US 
> viewers streaming foreign TV content, or viewing on cable channels. So, there 
> is demand for foreign material. What makes you think that people over there 
> wouldn't stream ours? Amazing!

This is not making your point. It is a clear counterpoint.

Of course they would stream our content...

If they could. The point is that the U.S. Congloms have no reason to undermine 
their current International distribution business model. Foreign competitors 
have every reason to want to access the U.S. Market, and the Internet is making 
it possible to bypass the gatekeeper U.S. 

> 
> Quoting an excerpt: "From India's Bollywood and Korean dramas to Japanese 
> anime and Nigerian movies, more obscure foreign titles are legally accessible 
> - often for free with a few clicks. The start-ups that stream them began with 
> the aim of reaching a niche audience - say, first-generation U.S. residents 
> who miss their home-country TV offerings - but soon found that quality 
> content organically finds its way to a broader swath of viewers."

You are making my point. The Internet and the need to fill 500 channels is 
making it possible to access this content in the U.S. for the first time in the 
history of TV distribution. 

Content FROM the U.S. has been accessible in foreign markets for decades. 

> And yet, even in spite of the article you posted,
> 
>> A huge stretch. There is no question, time zone differences aside,
> 
> A huge strectch? Time zones? Who cares about time zone differences? Do you 
> think I care when NCIS is transmitted, Craig? TV streaming doesn't have to be 
> live. I've said this a ton of times. People prefer on demand anyway, given an 
> easy choice, with few exceptions (news, sports).
> 
> You need to learn how to make cogent arguments, Craig.

This us not a question of what the viewers prefer. It is a question of business 
models and how to maximize the value of one of the largest U.S. Exports.

1.2 billion people around the globe still do not have electricity. 60% still do 
not have toilets in their homes. 

92% of the world's population DOES NOT have the ability to watch TV delivered 
via the Internet. That's a cogent argument for the current international 
content licensing model.

Regards
Craig

 
 
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