Hytops said:
I read some place that if a Station never broadcast over the air waves they do not have to share ( sell ) the rights to their broad cast. If this is really the law of the land, than Comcast is just marketing their strength. Why congress ever passed such a law
is baffling, but i will bet some poll cat got his pockets lined. I guess the ones we should be addressing are the professional teams in Chicago and NY.
Actually that law is called the terrestrial loophole and it isn't what you said it is. I'm not bashing you by the way just correcting you. This loophole simply states that if a channel is kept off of satellites it can be withheld from any company that must use a satellite to offer it to their customers. This was a big payoff for the cable companies in the early days of DBS. Now I must explain this whole satellite issue just to make sure you all understand it.
Right now their is a big difference between a channel be hosted on a satellite and a channel being offered on a satellite. This terrestrial loophole says it cannot touch a satellite at any point from the company to the customers homes and that is very specific.
Right now nearly all SD and HD channels are hosted on a satellite and all premium channels for example are hosted on a satellite and therefore don't quality under that loophole. Also the two InHD channels are also indeed hosted on a satellite and as such they don't quality for the loophole and as such cannot be withheld from any cable and/or satellite company that wants them. Now the problem that both Voom, Dish Network, DirecTV and even Verizon are having is pricing which I'll explain below.
Right now InDemand is charging the various cable companies a certain price per digital customer and notice the key word digital customer. Now the problem is that Verizon, Dish Network and DirecTV have all their customers as digital customers. So DirecTV is having to pay this fee per customer times almost 15 million customers while TWC and others only have to pay per customer charges for their digital customers only which means that per sub cost can exclude every analog cable customer. This makes it much more expensive for other companies like DirecTV to offer these channels. Now even as Comcast and BHN areas offer an all digital lineup for digital customers this won't change the numbers as those customers have always been digital customers and this change doesn't have any changes for analog only customers.
This is more complex than most think but this is what it comes down too which is unfair pricing tactics. Also if you remembered seeing all those only on cable logos and such that is very clever marketing on their parts as it wasn't false by saying only on cable as it was only on cable. They weren't saying it can't be offered on satellite but only that its only on cable. This can be viewed in two seperate ways.
It can be viewed as its only on cable companies or it can be viewed as it will never be on satellite as its only on cable. Very tricky don't you think.
Now the RSNs that aren't hosted on a satellite such as Comcast SportsNet Philly is a whole different beast. This channel doesn't touch a satellite at any point from Comcast to the customer as its all staying on Comcasts closed cable network. Because of this they can withhold this channel from satellite as DirecTV must put it on a satellite to offer it to their customers and as such that loophole states that it must not be on a satellite at any point from Comcast to the customer.
Now Verizon is another different story as their fiber network has the ability to take in a Comcast Sports Net HD feed locally and they can send it down their own network to their Central Offices and into the homes of customers without it touching a satellite which means that Verizon if they do this is exempt from this loophole and as such Comcast cannot withhold this channel from Verizon like they can with satellite companies. Why do you think these cable companies don't want another provider serving their areas. They know a hard-wired connection can really hurt their business as they can have capacity, speeds, VOD, internet, phone service and they cannot be withheld those RSNs either. This makes Verizon for example able to compete with Comcast in the way that satellite companies can never dream about.
I hope we all see just how important all of this is and just how important Verizon is in what it allows us customers to have that we will never get on satellite.