[opendtv] Re: Minority and rural groups oppose FCC's plan to change cable TV rules
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Thu, 22 Nov 2007 08:21:16 -0500
At 6:58 PM -0500 11/21/07, Manfredi, Albert E wrote:
Certainly, "a la carte" cable would very likely eliminate many of
the niche channels, which I suppose would include the "minority"
channels. Which is why I always wondered why Craig keeps asking for
a la carte choice, and then complains about how hard it is for small
producers to get their stuff out on TV systems.
Why would ala carte result in the availability of less channels?
The problem for minorities now is gaining access to distribution.
Other than the use of a TV license and must carry to get programs
onto cable, it is nearly impossible for independent producers and
small minority owned businesses to get distribution via cable, DBS et
al.
Meanwhile, cable systems are trying to find spectrum for new
services, as the FCC wants them to simulcast in analog at least
through 2012. There are a growing number of channels now available in
HD, and cable is being forced to make room for these as the
Satcasters are using a strong line-up of HDTV channels to attract new
subscribers.
And let's not forget that cable is doing a land office business with
broadband and they are using some spectrum for POTS.
The FCC is threatening to change the rules on leased access, making
it a bit easier for minorities to buy time on cable, but this is cost
prohibitive if you want to launch a 24/7 network.
Ala carte would allow consumers to vote with their dollars for the
content they want to watch. This "could" change the dynamics for
programming for minorities.
But the reality is that the Time and Channel, 24/7 world of network
programming is dying.
Most consumers only watch a handful of the channels they are forced
to pay for, and they only watch a few shows on these networks. The
whole idea of a network is losing its importance, especially as other
network services like news are confronting declining ratings.
As we shift from the TV guide model of programming to a download
model, network carriage is going to lose some of its importance. I
say some, because many of the cable networks contract with
independent producers to create their programs - this
financing/distribution model for content production is beneficial for
both parties, and is likely to survive, keeping most networks alive.
The real power behind the media conglomerates flows from two areas:
1. Control of content creation/distribution
2. Cross Promotion
There is no question, now that five companies own 90% of the content
that we can watch, that the control of distribution is critical to
their success. THIS is the real problem that minorities and
independent producers face. But promotion has always been a critical
part of the game. No just the direct use of promos and commercials
placed in other outlets for popular programming, but the entire food
chain is interdependent for promotional survival. Thus we see a
constant parade of Hollywood stars on the morning "news" shows, Leno,
letterman et al, the syndicated morning and afternoon talkers like
Oprah. And the networks are willing to lose money on big sports
franchises like the NFL and the Olympics, if for no other reason than
their value as a promotional engine.
The first step toward opening up the channels of distribution (other
than the Internet), is to get rid of these forced tiers of
programming where we pay subscriber fees for stuff we don't consume.
When consumers have a vote, it is highly likely they will not keep
paying for stuff they don;t want, but they may be more willing to pay
for the stuff they do want.
Ultimately its all about the ability of the distribution
infrastructure to handle 1 to 1 and 1 to few transactions. Currently
the media conglomerates can use technology as an excuse (at least
they can blame analog cable). But with digital distribution it will
be possible to handle transactions effortlessly and cheaply.
The claims that ala carte will make content more expensive is just
ludicrous fear mongering.
Regards
Craig
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