[opendtv] Re: Networks Threaten To Pull Channels Off The Air If Aereo & Dish Win Lawsuits
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Wed, 17 Apr 2013 09:06:04 -0400
On Apr 16, 2013, at 5:16 PM, "Manfredi, Albert E"
<albert.e.manfredi@xxxxxxxxxx> wrote:
> Take someone like in younger generation, or myself, who are "cable nevers."
> Under what twisted logic could we justify getting a subscription to a cable
> company, when we don't use one even for broadband access that we receive over
> Internet broadband? It makes no sense at all.
>
To you. But it may well make sense to the MVPDs for several reasons;
1. The value equation for their traditional TV service is indeed starting to
cause a small number of people to cut the cord. And it is unclear what the
primary motivation is for these cord cutters - the sorry state of the U.S.
economy and huge number of people added to public assistance roles in the past
few years is most likely a factor as well.
2. By providing service to new mobile second screens, the value equation may be
perceived as a substantial improvement. Clearly this is what Dish is banking on
in its offer for Sprint.
3. The MVPDs still have massive cash flow and margins that will allow them to
bend over backwards to maintain their subscriber numbers. Dish is already
offering some very attractive bundles to pull people away from cable. It is
common knowledge that you can call the local cable company and threaten to cut
the cord, if they don;t lower your monthly bill. I guess we can call this
pricing elasticity.
> To the non-MVPD-addict, subscribing to the MVPD makes sense only if you
> intend to benefit from their physical distribution network. The walled
> garden.
Yup. Which is what the vast majority of U.S. homes do today. Adding support for
mobile second screens may increase "stickiness," at least for a few more years.
What is FAR more important, however, is preservation of the duo-oligopoly of
program producers and MVPDs. As long as they can keep their most valuable
content available only to subscribers, even via the Internet, they will pursue
this model, allowing some of their stuff to be accessed days later to help
mollify the politicians and regulators.
>
> What Fox and others think I'll do is to pay, say, Cox for their
> infrastructure that I NEVER use, then again Verizon for the broadband pipe I
> DO use, for the privilege of watching Fox shows.
>
> Think again.
>
> Cable addicts are their own worst enemy.
What Fox and others think is that they can continue to control access to their
most valuable content - especially sports - and that the vast majority of
consumers will continue to pay those monthly subscriber fees.
Frankly they really do not care about you.
Regards
Craig
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