On Mon, Apr 11, 2011 at 12:16 AM, PGage <[email protected]> wrote:

> On Sun, Apr 10, 2011 at 8:33 PM, Kevin M. <[email protected]>wrote:
>
>> I find it odd that SiriusXM -- offering a bunch of channels for a flat
>> fee -- results in a diverse channel lineup whereas the cable/satellite
>> TV industry does the same thing with the exact opposite result. Yet
>> cable TV prospers while satellite radio fails.
>>
>> http://www.tvornottv.net/2011/04/10/via-satellite/
>>
>
> I don't find this surprising. Perhaps one reason that you do is that you
> keep referring to broadcast television/radio as "free" - but of course it is
> not. The audience pays for the programing in the cost of goods and services
> it buys, that advertise themselves on broadcast programs. That kind of
> market-based model inevitably puts pressure towards homogenization, as each
> channel is rewarded (and may only be able to survive) by attracting as large
> an audience as possible.
>
> Satellite radio is more diverse partly for the same reason that HBO
> tolerates more diversity - the value of each channel is evaluated in terms
> of its ability to increase unique subscribers to the larger package. A
> relatively small audience can still be valuable if a large fraction of that
> audience would be less likely to subscribe to the package without it.
>
> Thus, I think your argument actually supports a model that I think you are
> against, which is a very tightly bundled package. If "cable TV" really was
> parallel with satellite radio, viewers would pay one flate rate and get
> access to every channel (I am not familiar enough with SiriusXM - perhaps
> they do have some premium levels that cost extra). If this were the case -
> if every viewer had to pay, say, $80/month for cable, which gave them access
> to hundreds of channels, then we would see the kind of narrow-casting that
> was originally promised us.
>
> Another model of course would be for cable television to be subsidized by
> the taxpayers, not advertisers or subscribers. But then of course partisans
> of various stripes would attempt to censor the content, so I guess that
> won't work either.
>
> And don't forget that SiriusXM owns most of the channels it broadcasts,
> partners with providers for several others and really only pays for a few of
> the channels outright (like Stern and the sports packages). So they have the
> ability to keep things on track, whereas with cable networks, the tendency
> is for niche channels to drift off their original stated raison d'etre and
> go more general interest so they become more attractive to advertising
> dollars.
>
>
>
>
>
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