[opendtv] Re: TV Technology: Alliance Cries Foul Over TV Retrans Blackouts
- From: Craig Birkmaier <brewmastercraig@xxxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 10 Jan 2018 09:37:30 -0500
On Jan 9, 2018, at 4:52 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:
Yet another example of something that SHOULD BE a big "who the hell cares?"
This only applies to the distorted model of legacy subscription TV
distribution schemes, which were limited by the technology of the day.
NO Bert. These aggressive blackmail tactics are not limited to shaking down the
MVPDs, which in reality is just shaking down customers who already must endure
the massive ad loads in the programs the congloms depend on MVPDs to deliver to
their viewers. These tactics have already been employed to drive up the
subscriber fees for the streaming Internet services you still refuse to pay for.
The system the was limited by “the technology of the day,” was the broadcast
Radio & TV oligopoly, propped up by the FCC for more than a half century. The
FCC did its best to block the development of cable TV, and when all else
failed, the NAB went to Congress and got them to re-regulate the cable
industry, which was causing a massive decline in Network TV ratings.
In a classic case study of “The Law of Unintended Consequences,” Congress gave
broadcasters a lucrative second revenue stream and the ability to take over the
content side of the rapidly growing subscription TV business. Instead of rates
declining, they went up even faster, as the networks used their broadcast
affiliates to blackmail MVPDs into carriage of dozens of new affiliated
networks and hundreds of rerun channels.
Who cares?
- The 93 million U.S. homes that subscribe to legacy MVPD services;
- The growing number of homes (possibly 3-4 million) who now subscribe to
Virtual MVPD services;
- and the broadcast networks and their conglomerate parents, who are feasting
on the public, even as their empire is crumbling;ing.
Local broadcasters, pretending to own content that they do not own, only have
this leverage because the old distribution methods GAVE that leverage to the
broadcasters.
No Bert.
Congress gave that leverage to the networks, who still must rely on affiliates
because of the station ownership caps. In almost every case, the stations are
not responsible for the blackouts; it is the networks who are manipulating the
puppet strings and taking the lion’s share of the retransmission revenues.
The Alliance whines about it, but the MVPDs also benefitted greatly, from the
market distortions, for many decades. They had a captive subscriber base.
This is the first accurate thing you have written in weeks. The reality is that
all of these consequences WERE intended, and the legacy MVPDs were willing
accomplices, even as they screamed “foul.”
The back door from regulation was to add new channels every year so they could
increase rates; the congloms were more than happy to fill these channels. The
blackouts were never limited to just the broadcast channel that was blacked
out; the congloms used control of high visibility events to get the public to
put pressure on the MVPDs. When the new deals were announced, they covered
bundles of channels offered by each conglomerate. As the audience shifted to
the new MVPD only networks, the congloms started using the same blackout
tactics with their most popular shows as well.
We need to PREVENT such nonsense from occurring over the US (advanced)
telecom networks. Let those shenanigans exist only in the legacy MVPD model,
and all players will quickly realize that the more such games they play, the
faster people bail out.
Sorry, too late.
The FCC Chairman is trying his best to duplicate this sorry state of affairs
over the Internet, because he seems unable to think past his previous
allegiances. (Or because he's on the take. How is he not ashamed by that
appearance? I keep asking myself this question.)
The FCC has NO CONTROL over these issues with Internet streaming services Bert.
The Wheeler FCC tested the waters, after the Title II decision, and probably
would have proceeded if Hillary had been elected. The decision to return to
light handed regulation of ISPs assures that the FCC cannot stick its nose into
these issues.
IF you are seriously concerned about this, tell your Congressional
representative, or address your concerns to the FTC, which has always had
authority over anti-competitive behavior.
Regards
Craig
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