[opendtv] Re: Why aren't there more converter boxes?
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Fri, 26 Jan 2007 15:46:05 -0500
Craig Birkmaier wrote:
> Yes, I am aware of network compensation. it was very important
> in its day. Then virtually all stations began to operate
> profitably in the mid to late 80s. One could make an analogy
> to the early days of cable, when the collection of subscriber
> fees for cable networks was critical to industry growth, as ad
> revenues were not sufficient to cover the startup and
> operating costs of these new networks.
>
> That was then.
>
> Today virtually all of these networks could survive without
> the subscriber fees, just as broadcasters can survive without
> retransmission consent payments. But the precedent was set,
> and now the consumer pays twice, via their cable DBS bills and
> at the checkout counter.
I don't know if what you describe is all true. But let's assume it is.
Question 1: Why are you constantly telling us how the broadcasting model
is a dying model, if it is so obviously successful (from what you
describe)?
Question 2: Just how stupid are these consumers who pay twice when they
don't need to? Really, you cannot expect any business to act
magnanimously toward stupid consumers, can you? Most people would not
expect that. Unless you're calling for the government to step in, let
the market decide. I'll GUARANTEE you that if people quit letting
themselves get raped, the broadcast networks would find very viable
delivery mechanisms for their content. No need to expect the sort of
magnanimous behavior you want.
> I saw an analysis of Internet media services today that was
> critical of the fact that they do not generate enough
> advertising revenue. This totally misses the point. The public
> is sick and tired of advertising bloat, not to mention having
> to pay ever higher bills to the cable and DBS companies. We
> are reaching the tipping point, where it will be possible to
> pay directly for content WITHOUT ADS,
You have missed the trend completely, then. The trend, even in music
distribution, is to make it ad supported and otherwise free. This is
exactly the opposite of what you describe. And by the way, it's about
time someone discovered that Internet advertizing is far less successful
than the hype of the past few years suggests.
Bert
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