Originally Posted by fredfa
Let's just wait and see how far TWC (and other cablecos) push their fight against paying to rebroadcast local signals.
What percentage of homes will immediately
defect to telco or dbs (or even OTA) the moment ABC/CBS/Fox/NBC/ etc (and in NY, LA, Texas, Florida and Arizona markets the Spanish stations, which lead the ratings) disappear from lineups.
It seems odd how DBS and telco seem to be able to pay for local rebroadcast with no problem and keep their monthly bills lower than cable.
Clearly the time for cablecos paying for carriage of local stations is just around the corner. And it should be: the locals add far more value as a group to cable than any other set of stations.
Good luck TWC.
Although they disguise it, DBS still sells locals as an add-on option, and pays only for those subscribers who elect them. It is A La Carte all the way. It's a profit center for the satellite operators, not a cost.
The telcos are too small right now to do anything except pay premium rates for everything. It's just a pill they have to swallow.
The broadcasters have leveraged all the sibling networks they can muster onto cable systems "in consideration" of retransmission, and now that that well is dry, it's time for cash.
My argument is this. What incentive does a broadcaster have to provide abundant quality programming when all he needs is a couple of marquee events to extort carriage fees from cable operators, and fill his schedule with cheaper programming.
In other words, you move the target away from attracting viewers, because eyeballs are all you have to sell, to a mixture of ad revenue and subscription fees, AND THAT IS NOT "IN THE PUBLIC INTEREST". Especially if they still expect market exclusivity for their product.