“In addition, the growth of the Internet has brought countless new video options into consumers’ homes through services like Hulu, NetFlix, Amazon, and the programmers’ own websites. Right now, the broadcast TV networks generally offer that programming free over the Internet — and free over the air to any household with an antenna — but believe that customers who receive the exact same programming from their cable, satellite, or telephone company should pay a fee for it. That’s like putting a tax on the customers who get it from cable, in order to subsidize the viewers who get it for free online or over the air. We just don’t think that’s fair.” (TWC’s emphasis)
“New distribution of programming doesn’t run so well under old monetization systems. In the process of improving the infrastructure of media delivery, access providers and media companies did a short-sighted job of determining the value of the shifts in media usage that they caused by improving the infrastructure. They never developed a model that appropriately valued media usage that is more driven by people’s schedules of desired use via two way cables than their schedules of distribution through one way cables.
So they are left to squabble over which antiquated levers and buttons they can pull and push to make a buck, ultimately, at the expense – in terms of money and, perhaps more importantly, time and convenience – of their most valuable assets: people who pay for access and are fans of programming (not pipes).
Kinda makes all the talk of “if the content is good, people will come” irrelevant, really. If the content is good and people come and no one makes sufficient money to produce more good content it really doesn’t matter.”