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Analyst: Pay TV Providers Have Enough Muscle To Block Competition From The Web

Discussion in 'Off-Topic Discussion' started by CatfishRivers, Jan 28, 2012.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    Analyst: Pay TV Providers Have Enough Muscle To Block Competition From The Web - Deadline.com (click for full article)

    "It's a shame that the general public usually can't read industry reports from Bernstein Research's Craig Moffett. When he's on, which is frequently, his stuff is as thought provoking and engagingly written as anything you'd see in The Atlantic or The New Yorker.


    So I'll consider it a public service to summarize his compelling effort this morning to bust one of the tech world's most fervent beliefs: that that some company - perhaps Google, or Apple, or Netflix - will topple the pay TV oligopoly by offering cable programs or channels, possibly a la carte. Microsoft recently backed away from its dream of offering a cable-like service through its Xbox game console.


    Others will also give up, Moffett says, because the problem isn't that Comcast or DirecTV are ignoring consumer demand to break up the expanded basic package. Six companies - Disney, News Corp, NBCUniversal, Time Warner, CBS, and Discovery - account for 90% of all viewing hours.


    They demand that their channels be sold in packages, "and only that way," Moffett writes. Didn't the music industry try to do much the same thing with CDs before it had to back down and sell individual tunes for 99 cents? Yes, but the music industry had to respond to Napster offering songs for free. The danger of that happening to TV channels "is nothing like what the music industry faced ten years ago (at least, not yet)," Moffett writes."
     
    Last edited: Jan 28, 2012

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