[opendtv] Re: TVE definition
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Thu, 6 Aug 2015 00:25:32 +0000
Craig Birkmaier wrote:
They may become small fish in a much bigger pond, as opposed to
big fish in a small pond.
The pond is already huge.
The biggest cabled MVPDs have access to 30 percent or so of US households. They
could have access to 100 percent of US households. Of course then, to retain or
increase their share, they would have to compete for it. As opposed to being
the only option (in most cases) in each locality.
What I don't think you are taking into consideration is the economic
power that the MVPDs have and their ability to use pricing to remain
competitive. They already pull out an unpublished price list if you
threaten to cut the cord, and they can easily reduce the size and
cost of the bundles they sell.
I don't understand what point you're trying to make, Craig. I have no trouble
understanding what an anti-competitive marketplace does. How am I not taking
that into consideration?
This is what happens when technology changes, though. It was not
possible before, now it is. And the new approach is more
competitive, giving the consumer an advantage, compared with what
the old technology allowed.
Not sure about "advantage," but consumers are certainly getting
more value in terms of accessibility and WYWIWYS
It's hard to find examples of supply side competition NOT being advantageous to
the consumer.
We already have multiple companies "competing" everywhere. But they
all protect the business model that is making them money.
And yet, we have ESPN on Sling TV, and ESPN on other sites in the future, and
we have HBO Now, and more movie channels to come, direct to consumer. All of
which were once only available in proprietary walled gardens. So they are NOT
just protecting the old business model, Craig.
Infrastructure is expensive. Both the physical plant and the
fees that municipalities charge for access and pole attachments.
We've been over this many times. If infrastructure cannot be competitive, such
as water and sewer, and cabled nets, then those uncompetitive aspects of it
have to be strictly regulated. Just saying "it's expensive" doesn't translate
to "therefore it can be both anti-competitive and unregulated, and the one or
two players can charge fees that increase faster than inflation."
We have to get beyond consistently falling back on vague banalities. Things are
changing, and the reason is that the technology permits this to happen. The
broadband 2-way network permits things to evolve, where previously, the one-way
broadcast technology gave few incentives for change.
Bert
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