Linked by Thom Holwerda on Fri 25th May 2012 07:39 UTC
Legal Dish' DVR has an 'auto-hop' feature, which automatically skips commercials on recorded TV. Fox is now suing Dish over this feature, because they claim it will destroy the business model of ad-driven television. "We were given no choice but to file suit against one of our largest distributors, Dish Network, because of their surprising move to market a product with the clear goal of violating copyrights and destroying the fundamental underpinnings of the broadcast television ecosystem," said Fox. This is the photographic film industry suing digital camera makers. It's so utterly absurd I can hardly believe it's for real.
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RE[2]: US vs the World
by deathshadow on Sat 26th May 2012 03:44 UTC in reply to "RE: US vs the World"
deathshadow
Member since:
2005-07-12

Cable tv viewers DO pay for broadcast TV programming, even though they are generally included with the basic bundle rather than value added options.
an amount that really only covers transmission charges -- case in point:

According to Broadcasting & Cable, providers pay an average of $.26 for each channel that they offer to customers


Let's take... the Commiewealth of Taxachusetts, southern NH and Rhode Island as an example... and use WFXT 25, the local fox affiliate -- which totals by US Census and FCC numbers somewhere around 3.6 million homes; let's highball and say all those homes are paying that 26 cents to have WFXT carried via satellite or cable.

3.6 million * 0.26 = 936 million dollars a month sounds impressive...

But compare to say... the dozen or so prime-time advertising slots averaging $100k/pop PER SHOWING? They make that billion or so in a DAY of advertising. I mean sure, you can run a 30 minute informercial for $5 a pop at 3AM -- daytime and primetime broadcasts? $50k is the low end and how many of those can they run EVERY DAY? Admittedly nailing down rates is tough since cost is DIRECTLY tied to Neilsen ratings and/or expected viewership (see the 2.4 million dollars every 30 seconds superbowl price), you add up the advertising costs over a month, and it makes the fees from cable and satellite providers look like chump change; certainly not enough to operate on without advertisements.

... and it's NOT a difference between networks and their affiliates; two thirds of every minute of advertising is devoted to national ads, the remaining third for local. Even without the broadcast model, the local affiliate is still an essential part of the infrastructure when it comes to news, regional broadcasts, and tailoring of content delivery to the community.

... and that's just talking ONE channel; if we're talking every Fox broadcasting channel -- FX, Faux News, Fox Sports, etc, etc... that's a significant multiplier that makes those fees seem even more pathetic.

Also, I would question that 26 cents given the top 200 over basic plans is typically 15 to 30 bucks more -- I very much doubt they're paying 52 dollars per household for that. A little common sense and reverse engineering can really lay waste to that type of information.

Reply Parent Score: 1

RE[3]: US vs the World
by ilovebeer on Sat 26th May 2012 04:02 in reply to "RE[2]: US vs the World"
ilovebeer Member since:
2011-08-08

... and it's NOT a difference between networks and their affiliates; two thirds of every minute of advertising is devoted to national ads, the remaining third for local.

I'm curious to know where you got those figures from. There's no way you're talking about a 24 hour average so I'd also like to know while time slot that ratio is supposed to refer to.

Even without the broadcast model, the local affiliate is still an essential part of the infrastructure when it comes to news, regional broadcasts, and tailoring of content delivery to the community.

While there's no denying that, for now, local affiliates are still important, you can't ignore the on-going data which shows people are moving away from local tv stations and more towards pay-service & streaming content providers. The playing field is changing shape along with the way people want and receive their "news" & entertainment.

Reply Parent Score: 3

RE[3]: US vs the World
by Alfman on Sat 26th May 2012 06:07 in reply to "RE[2]: US vs the World"
Alfman Member since:
2011-01-28

deathshadow,

"3.6 million * 0.26 = 936 million dollars a month sounds impressive... But compare to say... the dozen or so prime-time advertising slots averaging $100k/pop PER SHOWING? They make that billion or so in a DAY of advertising...."


I'm truthfully having trouble following most of your figures, so I won't attempt a rebuttal.

I wish I had enough money to nonchalantly dismiss hundreds of millions of dollars per year like you do ;)

Reply Parent Score: 2