[BC] Can technology create a significant revenue source for radio?

Tom Taggart tpt at literock93r.com
Sun Nov 21 16:08:04 CST 2010


Barry noted:

"Essentially, today's corporations seek revenue increases
.. but do not want to give up anything.  The best example
you can have on this point is probably television: in many
places 85% or more use cable or satellite. The FCC is
looking to take some of that bandwidth back. The TV industry
doesn't want to give  anything up - even if no one is
watching."

Barry, this is a problem created by regulation.  The TV
station has a marketable audience on cable (often satellite
as well). But if they gave up their over the air bandwidth,
they would no longer be a "broadcast station." The cable
company--local advertising competitor to the TV
station--would then no longer be obligated to carry that TV
station ("must carry") and would drop them like a hot
potato. Even (especially) a network affiliate--cable would
just import from somewhere else or (sure to make a lot of
station owners shudder) arrange for a direct network feed
the cable company could sell.

A market-oriented approach might solve this problem. Allow
the station to auction its protected coverage area (with a
reserve amount, naturally). Potential broadband bidders
would get the right to set up cell-type transmitter inside
this area, so long as they adhere to the protection limits
toward the remaining co/adjacent TV operations. In return
for selling its channel station, station not only gets the
money bid by the winning broadband operator, but also gets
"legacy channel" must carry on cable systems it is now on
for a fixed period of years. 

Never work, of course, since there is no way for the
guv'mint to make money, and is way too simple.
        



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