:focus:
I think we're going to see the programmers (AMC, CBS, etc.) fight back and draft two different pricing schemes into future agreements. Oh, let's say $0.26 per subscribers if there is no MVPD manipulation of the advertising stream, and $2.26 per subscriber if something like the autohop feature is enabled. Regardless, the FCC needs to step-up-to-the-plate in order to level the playing field and protect consumer's interests in the rapidly changing video landscape:
Five Needed Changes:
1. Any broadcaster/cablecaster who accepts advertising dollars must provide their programming feeds free-of-charge to licensed MVPDs (regional broadcast and sports coverage rules still apply). ABC, CBS, FOX and NBC are free to all (just like with an antenna) but so too are AMC, TNT, USA, etc. These cable favorites can charge MVPDs for their programming...they just need to get rid of all the commericials and infomercials. This model is fair for programmers sitting on all sides of the table. Obviously, MVPDs are not permitted to alter the datastreams being delivered to their customers.
2. Subscription based programming channels (i.e., those such as HBO and Showtime who do not accept advertising dollars) must be offered "a la carte" to subcribers. I DO NOT buy the, "oh, this is too hard to implement" bullcrap being spewed by the programmers and MVPDs. We live in a digital economy...we pay out bills and doing our banking online...and just about everyone has upgraded to an all digital services architecture - it's not that freaking difficult. If the cable companies can control my set-top-boxes and Cablecard devices (Tivo's, etc.) then they can certainly setup a menu/billing system in which customers can selected the programming they wish to receive.
3. All customers pay the same price for programming based on supply and demand (e.g., ESPN should be the same price at Comcast, DirecTV, FiOS, etc.) If people want to pay $10 per month for ESPN...well, so be it. However, if consumers are only willing to pay $3,00 per month for [commercial-free] ESPN...well, then that's the going rate. And if you don't view sports you won't have to pay to watch. Viola!
4. States taxing satellite programming and equipment needs to stop! DBS providers lease this bandwidth (spend billions) from the federal government and they use no public rights of way. Stop these illegal taxes!
5. Satellite VOD and other programming delivered over the Internet needs to be taxed. Let's face it...folks are subscribing to a Pay TV service and content is being delivered via IPTV. If AT&T U-Verse has to obtain a cable TV franchise and subscribers pay franchise fees and other federal and local taxes (as the courts have ruled) then so too should DirecTV and Dish Network. Moreover, subscription-based IPTV services like Hulu, Nexflix, etc. need to pay franchise fees and taxes.
Obviously, people should be able to subscribe to bundled services since these options offer the best band-for-the-buck for many. And of course the programmers and MVPDs are free to offer a variety of packages and bundles in order to meet consumer demand...just as long as they are offered for the same price on D* as they are on E* as they are on Comcast. Also, if you haven't noticed...there are no programming disputes and there are no channels "getting yanked" because all channels are offered to all MVPDs and consumers determine the going rates. Viola! Will some channels completey disappear? Sure! But good programming will survive...along with a whole lot of rotten programming too. Anyway, this is my 15-minute lunchtime overview of how to create a fair marketplace. Could I be wrong? Asolutely! But it can't be any worse than the path I see us heading down nowadays.
Bottom line:
- Consumers set the market price for programming.
- Everyone pays the same price whether they're with E*, D*, Comcast or streaming over the net.
- All programmers have a level playing field in which to operate.
- All video (including IPTV) is fairly taxed.
- MVPDs will earn money on being more efficient in their deliver systems and offering innovative add-on services (whole home DVR, PPV, pocketdish, mobile service integration, etc.)
