[opendtv] Re: Internet TV business model changes
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Sat, 4 Jan 2014 11:49:41 -0500
> On Jan 3, 2014, at 7:59 PM, "Manfredi, Albert E"
> <albert.e.manfredi@xxxxxxxxxx> wrote:
>
> Yes, and when you get a huge audience, you CAN charge more for the ads. This
> goes beyond the US. The same can be said about international distribution.
> The cost structure there can also change, especially for programming that is
> left intact, not even dubbed.
Why would the size of the audience change?
The only important change is that it will be possible to accurately measure the
audience size. If you believe the audience is currently underestimated, then
you might be able to charge more. If it turns out the audience is smaller...
The ONLY way this could work to the benefit of the networks is if they can get
MORE to deliver targeted ads to individuals or highly targeted demographic
groups.
And forget about the International distribution - these rights are tightly
controlled, with the broadcasters and MVPDs in each country paying for
exclusive distribution rights. This may not apply to the same extent in
reverse, or for less valuable content. Many countries do not create content of
global interest.
>
> I know you'll come back with this business about agreements in place now.
> That's the same argument as you make when you tell me the MVPD price
> structure has to remain unchanged, even for TV over an independent ISP
> network. The networks have the content, Craig. They da boss. BTW, it looks
> like Germany is allowing all of its Internet TV to be viewed here, and I
> assume elsewhere too. So you tend to be way more negative about these changes
> than is warranted.
What content does Germany produce? Most of what is available is only of
interest to German nationals who live or travel outside the country. This is
true for most global TV markets.
You are right about the networks having the content Bert. And they want to keep
it this way!
> The bottom line is that the NETWORKS stand to gain a whole lot. Today's
> middlemen, maybe not.
Really? This would require the networks to gain a huge number of viewers. The
reality is that they continue to bleed viewers as consumers have more choices.
>
>> Maybe you should look at it this way Bert. The Congloms used FOTA TV to
>> get the population hooked on the drug they sell.
>
> Think of it this way, Craig. The networks STILL transmit FOTA. If you say so,
> we'll pretend it's to get people hooked. And they can continue to do that as
> FOTI. For the addicts, they can either host their own for-pay extra
> programming, on the Internet, or continue doing what they are already doing,
> with for-pay OTT sites. I don't see how the networks can lose.
FOTI is there to increase the audience for network programming over time - to
attract viewers who missed the first broadcast. It is in part in response to
increased competition for our eyeballs, and in part to control this new
distribution medium.
For me, it is not an issue, as I gave up on viewing most network dramas and
sitcoms years ago when the entertainment value disappeared.
Regards
Craig
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