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[ NNSquad ] Re: Television's Money Complaints - 2009 and 1974


I remember the ads back in the 60’s if not earlier. What makes it strange, aside from using pay-movie theaters as the venue is that Pay-TV was an additional option and wasn’t taking away from broadcast. As I kid I remember being puzzled about what they were complaining about but knew that they did not have my best interests at heart. I note at the tail end of your video it says “and cable TV”. What did a kid in Brooklyn know about this “cable”?

Roll ahead to the present and if Comcast owns NBC then will they continue to charge TWC the same rates as NBC did before being owned by Comcast? What about the reverse, TWC’s HBO et al over Comcast? As gamers, in the mathematical sense, the best strategy is to both charge each other high prices. Sort of like patents as trading cards among the large corporations.

You don’t need to control the market – a set of companies with similar business models owning all the silos will achieve the same effect and the prices you charge each other net out as if they were arbitrary transfer costs.

The question is whether the FCC can start to apply the 6” dish rule in the sense that you must have the option of subscribing directly over IP for the equivalent to a deal you can get by subscribing over cable. I don’t believe in a la carte pricing for TV any more than being able to get a better price at a restaurant by asking for 25% less peas.

But today’s vertical integration is something different – there is no longer a necessary connection between the transport and the content. We needn’t accept the bundling the cost of the infrastructure with the price of the service. We should go back to the IBM consent decree that was used to limit IBM’s bundling of hardware and software and to the lessons of the separation of TCP and IP to the limit the ability to require such bundling for content/transport. The economic benefits of such decoupling were high enough to have a major impact on the economy and society. Imagine if we were still limited to IBM’s software and the carriers’ content?

We should also apply the same idea to subsidizing cell phones but that’s a different discussion.

-----Original Message-----
From: nnsquad-bounces+nnsquad=bobf.frankston.com@nnsquad.org [mailto:nnsquad-bounces+nnsquad=bobf.frankston.com@nnsquad.org] On Behalf Of Lauren Weinstein
Sent: Saturday, December 05, 2009 22:48
To: nnsquad@nnsquad.org
Subject: [ NNSquad ] Television's Money Complaints - 2009 and 1974

 

 

 

 

                Television's Money Complaints - 2009 and 1974

 

                 http://lauren.vortex.com/archive/000649.html

 

 

Greetings.  Comcast's plans to buy NBC Universal are widely viewed as

largely an effort to obtain a particular category of assets -- NBC's

cable networks.

 

The battles between the massive dominant cable TV firms (and the large

satellite TV delivery systems) vs. the network and local TV

programming suppliers (both over-the-air broadcast and not) has turned

into a continuing war.

 

On one hand, cable and satellite generally want as much programming as

possible at the lowest possible cost (ideally free).  Networks and

local stations would prefer to be paid, and the use of mandatory

packages ("if you want this network, you have to take all of these as

well") has further complicated the issues.

 

By the way, this is a different (though somewhat analogous) situation

from what cable and satellite subscribers face when choosing among

different programming packages.  However, I am not at this time a

supporter of proposed rules to force a la carte programming, since I

fear it will undercut the subsidies that keep various excellent niche

networks alive, which generally don't have large audiences relative to

the big movie and sports networks.

 

With the addition of Internet video viewing into the mix, the

concentration of power represented by -- for example -- Comcast owning

cable networks that its competitors would also want to distribute is

an obvious problem.

 

But for now, the cable big boys are complaining again about the costs

of programming, and Time Warner Cable in particular has now deployed

the increasingly common approach of trying to scare subscribers into

helping with TWC's negotiations.

 

TWC has started running a spot urging subscribers to vote on

whether TWC should "roll over" or "get tough" in their negotiations,

and warns of threatened programming cutoffs.

 

But amusingly, back at the dawn of cable TV, the roles were reversed,

with broadcast TV urging viewers -- even through ads running in movie

theaters -- to fight against pay TV and cable TV.  Deja vu all over

again!

 

So let's see how much has really changed over 35 years or so.  I've

put together a short video including both the current TWC spot and a

classic anti-cable ad from around 1974.  (Apologies for the abrupt

start and ending of the second clip -- time is not generous to ancient

videotapes.)

 

By the way, I'm still trying to figure out which of the most recent

presidential candidates the voice-over artist for the TWC spot was

voicing ads for.

 

   Television's Money Complaints - 2009 and 1974 (Video)

   http://bit.ly/8OMNWB  (YouTube)

 

Once again we see that in many ways, the more things change, the more

they stay the same.

 

--Lauren--

Lauren Weinstein

lauren@vortex.com

Tel: +1 (818) 225-2800

http://www.pfir.org/lauren

Co-Founder, PFIR

   - People For Internet Responsibility - http://www.pfir.org

Co-Founder, NNSquad

   - Network Neutrality Squad - http://www.nnsquad.org

Founder, GCTIP - Global Coalition

   for Transparent Internet Performance - http://www.gctip.org

Founder, PRIVACY Forum - http://www.vortex.com

Member, ACM Committee on Computers and Public Policy

Lauren's Blog: http://lauren.vortex.com

Twitter: https://twitter.com/laurenweinstein