Wednesday, February 18, 2015

Greenhill - TV Spectrum - Free Money

Two blogs of note are highlighted below  – I’m more confused than ever – They (FCC) needs more than a few road shows to explain this mess of options.

I would never have predicted any traction in the larger TV markets for dumping spectrum. I would have thought it too competitive to dump spectrum.

Sure I could see some smaller market boys cashing out – but I’m shocked at any large O & O considerations – reminds me of a song lyric:

“It's the lure of easy money, it's got a very strong appeal”

Why would anybody sell spectrum to a wireless provider to enable “them” to directly compete for viewers?

#1 Answer:  You’re a network O & O with access to original programming and you’re ramping up your video streaming via a subscription model.

I’m troubled by statements that I find that say 'don’t worry as long as you have cable and satellite coverage" -- why worry about the over-the-air channel sharing?
True enough – but what about the “cord-cutters”? oh yeah that right you have the streaming option at your facility.

Cord-cutters should be a zero loss - right? Not watching on cable but now watching OTA.

Wrong, cord-cutters are for the large part video steamers, with OTA service secondary in their viewing habits. 

STREAMERS that realize they're not really watching traditional television - but consuming video programming.  There is a difference, yes they are dropping the cable channels, but increasing their broadband service.
 
There are three storms a brewing – that require / need to be monitored:
1.      Cable Cutters impact on viewership via lost of cable subs.
2.      Video Streaming Services – networks offering original programming
3.      ATSC 3.0 Standard impact on roll-out of mobile services.

Here’s a couple of newly minted blogs on the Greenhill revised report $

FCC Revises “Greenhill” Auction Information Book; Replaces Potential Final Payments With Opening Prices
http://www.wileyonmedia.com/2015/02/fcc-revises-greenhill-auction-information-book-replaces-estimated-final-payments-with-opening-prices/#more-2253

Incentive Auction Update: Projected Opening Bids Shoot Up in Latest Greenhill Report
http://www.commlawblog.com/2015/02/articles/broadcast/incentive-auction-update-projected-opening-bids-shoot-up-in-latest-greenhill-report/