> On Jan 31, 2014, at 9:29 PM, "Manfredi, Albert E" > <albert.e.manfredi@xxxxxxxxxx> wrote: > > I think this article gets one thing right for sure: > > "Though the eventual effects of a virtual pay-TV service could be good for > consumers, content companies are the clearest, biggest beneficiaries, with > more buyers of their programming entering the market. It explains why media > companies like Discovery, Disney, and Viacom are so convinced that the dawn > of Internet pay-TV is upon us -- they have the most to gain." > > If they can't gain, it won't happen. Thanks Bert! You finally understand why the media congloms operate their business the way they do. You have argued time and again that the congloms can get rid of the middlemen and go direct to the viewer. This article rather convincingly argues that the congloms will benefit from MORE middlemen. Truth is, the viewers have never been "the customers" of the congloms; they are customers of middlemen who all offer essentially the same content. Walled garden subscribers are far more valuable to the congloms than services that only have one revenue stream from ads. By keeping the best stuff inside the garden walls, the highly profitable bundling tactics assure a very high percentage of viewers will pay; as the article suggests, new OTT services will have no choice but to do the same. So the congloms cannot lose, as the middlemen drive up the price of popular programming as one after another cave in retrans/subscriber negotiations. And bundling allow the congloms to profit from less valuable content, which in turn clogs the arteries of the distribution pipes, effectively keeping new content providers at bay, and forcing program producers to sell to the gate keepers if they want to "play in the gardens." All that matters is that the viewer must subscribe to a walled garden service in order to access the most valuable content, and now to benefit from "TV Everywhere." So bring on new OTT competitors! We will just make a little more per subscriber? > But I don't understand why journalists are so insistent that "net neutrality" > was struck down by the courts. It sounds like their proclivity for hyperbole > just won't give up. The ONLY thing the courts struck down was the idea that > bandwidth usage had to have no impact on prices, at least from the point of > view of the content source. That's all. Net neutrality would truly have been > in jeopardy, if the courts allowed ISP/MVPD combination services to block the > IP content of their programs, or the IP streams from competing content > owners. Journalism started to decay back in the era when The Golden Age of TV gave way to hundreds of channels. The Internet put the final nail in the coffin, allowing any hack to express an opinion. We no longer report the story, we analyze it to death from every possible point of view. Every story has a range of potential meanings/outcomes, with multiple best case/worst case scenarios. The Net Neutrality story is still playing out. Nobody really knows what will happen. But the article you posted provides many significant clues. The obvious take away is that the content and MVPD/ISP oligopolies are not going to allow some upstart competitor to tear down the garden walls. As I said before, the only strategy that has a chance, is for someone with very deep pockets to provide a service "below cost," in hopes they can make money in a related business. Amazon has used this tactic to bring "retail" to its knees. Google has managed to get the majority of manufacturers of smartphones to operate with negative profit margins, while they profit from the ads that mobile users see. Even Apple may not have deep enough pockets to take on the TV oligopolies, not that they would ever use these loss leader tactics to take down an industry. Regards Craig ---------------------------------------------------------------------- You can UNSUBSCRIBE from the OpenDTV list in two ways: - Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org - By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word unsubscribe in the subject line.