[opendtv] [Re: opendtv] Incrementalism
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 8 Jan 2014 21:47:12 +0000
Craig Birkmaier wrote:
> Bert thinks the media conglomerates are missing a huge opportunity
> with the Internet.
Craig confuses the argument. With respect to day-to-day TV programs, yes, the
networks are missing an opportunity (international, mostly). With respect to
movies, the WSJ article Craig posted confirmed, instead, that the movie studios
ARE using the Internet effectively. They are not, for example, insisting on
using only MVPDs, or only movie theaters, to release their content. Instead,
they are using the Internet, and in doing so, with middlemen that add value FOR
USE OF THIS MEDIUM. I don't have to go buy a movie ticket at Regal Cinema, in
order to stream a movie from Amazon.
Even more importantly, the article indicates that online distribution and
BluRay disk distribution are the most profitable, for the studios.
http://online.wsj.com/news/articles/SB10001424052702304887104579306440621142958
"Online movie sales are studios' highest-profit-margin transaction, along with
Blu-ray discs, which is why they have aggressively pushed the format."
> Bert recently questioned why consumers download content, when they
> can stream it from the cloud? The following WSJ article sheds some
> light on how the congloms are using the Internet to monetize movie
> distribution, selling bits rather than shiny discs...
Again, Craig misplaces emphasis and muddles the argument.
First point: online distribution can consist of *either* streaming *or*
download ahead of time. The article DOES NOT differentiate, until the end.
Secondly, the issue here is why retain unnecessary middlemen, e.g. why pay MVPD
fees for content that is being streamed (or downloaded, who cares which)
online, with no involvement of an MVPD network infrastructure. The article
points out that the movie houses are using the Internet effectively, when it
comes to movie distribution.
Thirdly, if Craig had read the article to the end, it did address the
increasing popularity of streaming:
"Meanwhile, physical media sales-a category that includes both DVDs and
high-definition Blu-ray discs-dropped 8% to $7.78 billion.
"DVD rental subscriptions, the category that Netflix Inc. pioneered, dropped
19% to $1.02 billion, while rentals at stores fell 14% to $1.04 billion.
"Subscriptions for movie streaming, a category dominated by Netflix, remained
increasingly popular, though, with revenue up 32% to $3.16 billion."
Up 32 percent. Not bad, Craig. Looks to me like people are streaming, as their
increasingly preferred method of online purchase.
Bert
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