[opendtv] Re: TV Programmers Put Subscriber Caps on Skinny Bundles | Media - Advertising Age

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 6 Apr 2015 08:45:07 -0400

On Apr 5, 2015, at 8:24 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:

This idea will fall apart for the same reason that channels are migrating
outside the old faithful "the bundle." These schemes fall apart when content
owners of the most valued content say, "Heck with this noise, I'm going to
make MY content available to as many people as I possibly can, no matter what
my competition wants to do."

It is the owners of the most valued content who are imposing these "artificial
caps." They benefit the most from the status quo - i.e. The subscriber fees
from the fat bundles.

Then again, this could just be a gimmick to get people to sign up for the slim
bundles. If the article is correct, and only 100,000 people have signed up for
Sling, it would not appear that there is much pent up demand for what Dish is
offering.

Compare this to Apple selling 74.5 million iPhones last quarter (a global
figure). That's 34,000 phones per hour - about 3 hours of iPhone sales versus
60 days for Sling to reach 100,000.


The demand side gains more power when the supply side no longer has a
monopoly. It's that simple.

Yup. The supply side still has a monopoly (actually an oligopoly), and they are
moving very cautiously to hang onto it as we transition to Internet
distribution of entertainment content.

Regards
Craig


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