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FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

1 recommendation

reply to elray

Re: What's the problem?

This is all about Sinclair losing ad revenue on their OTA local stations and trying to squeeze more money from cable to make up for the lost ad revenue.

Eventually, cable & telco TV will totally squeeze out the OTA stations completely and will deal directly with the content providers. That eliminates 1 source of additional overhead. And with the FCC cooperating by wanting to buy up TV OTA spectrum to sell to cell providers the squeeze is on from both sides.



56403739
Less than 5 months left
Premium
join:2006-03-08
Naples, FL
kudos:2

1 recommendation

said by FFH:

This is all about Sinclair losing ad revenue on their OTA local stations and trying to squeeze more money from cable to make up for the lost ad revenue.

Actually, that's not what it is about, but thanks for guessing. It is about the free market arriving at a fair value for a product. If there was no demand for what Sinclair was selling, TWC could just say "bye bye" and drop the channels. But they won't since cable still can't produce the kind of programming most people watch.


GeekJedi
RF is Good For You
Premium
join:2001-06-21
Mukwonago, WI

1 recommendation

No, MMH is absolutely right. It's about lost ad revenue. The fair market value of the product is free. The payment they get is eyeballs on the ad views.

Don't forget that the TV stations use ratings to determine spot rates. No cable = less viewers = less revenue.
--
The goal of the broadcast engineer is to get all the meters on the transmitter to go as far to the right as possible!!



KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
reply to 56403739

What Free market do you speak of? The one where I can just pick to watch whatever channel I wish? OH WAIT. I can't.

This isn't about "fair market value" at all.

It's about how much people get bent over.

No wonder people look to other ways to get programming.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini



FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5
reply to 56403739

said by 56403739:

said by FFH:

This is all about Sinclair losing ad revenue on their OTA local stations and trying to squeeze more money from cable to make up for the lost ad revenue.

Actually, that's not what it is about, but thanks for guessing.

Others agree with me:
»news.yahoo.com/s/ap/20101229/ap_···_dispute

Broadcast companies used to allow cable providers to carry their channels for free and made their money selling commercial time. But competition with cable networks for ad dollars has intensified, and the recession underscored how quickly ad spending can fall off when businesses need to cut spending. Now broadcasters see these fees from cable providers as a crucial, second revenue stream.



FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5
reply to FFH

Negotiations extended for 2 weeks

Sinclair Broadcasting Group and two cable TV companies agreed to extend contract talks for two more weeks.

»news.yahoo.com/s/ap/20110101/ap_···_dispute