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Will Fox Shut Down Their OTA Network Over Hopper And Aereo?

Discussion in 'General Satellite Discussion' started by SayWhat?, Apr 8, 2013.

  1. Apr 8, 2013 #1 of 28
    SayWhat?

    SayWhat? Know Nothing

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    Apparently, it's being discussed according to several news items.

    http://www.chicagotribune.com/business/sns-rt-us-newscorp-foxbre9370vv-20130408,0,6194910.story


    Other articles mention that another (as yet unnamed) major OTA network may be considering the same move.
     
  2. Apr 8, 2013 #2 of 28
    lparsons21

    lparsons21 Hall Of Fame

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    At this point I think they are chest beating, but at some point in time the broadcast mode may very well disappear. And for most people that would probably be OK, but there would be many in the more rural parts of the country that might not be so thrilled.
     
  3. Apr 8, 2013 #3 of 28
    SayWhat?

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    Something just crossed my mind. They mention 'subscription' without really saying shut OTA down. With the digital OTA broadcasts, could they be considering scrambling the broadcasts and selling/leasing/renting a form of set top box to decode the signals?
     
  4. Apr 8, 2013 #4 of 28
    sigma1914

    sigma1914 DIRECTV A-Team DBSTalk Club

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    I don't think it'll happen for 1 big reason ... NFL games.
     
  5. Apr 8, 2013 #5 of 28
    Gloria_Chavez

    Gloria_Chavez Godfather

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    If Fox Broadcasting were to do so, the government would immediately take ownership of the national radiospectrum which Fox currently exploits.
     
  6. Apr 8, 2013 #6 of 28
    scooper

    scooper Hall Of Fame

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    The broadcasters are REQUIRED to leave at least one stream unencrypted (note the lack of HD/SD distinction). There is no reason they could leave a 2MBPS audio/video stream unencrypted then encrypt everything else that goes out the antenna.
     
  7. Apr 8, 2013 #7 of 28
    Hoosier205

    Hoosier205 New Member

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    Exploits...haha
     
  8. Apr 8, 2013 #8 of 28
    Stewart Vernon

    Stewart Vernon Leapin' Lizard Staff Member Super Moderator DBSTalk Club

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    Yeah... so many people think digital = HD... but they could easily decide to encrypt the higher-quality HD signal OTA and then leave a low-bandwidth SD signal unencrypted.

    They also could just encrypt primetime or certain programming in this manner.

    Or they could just stop putting their good stuff on FOX and moving much of it to FX. That would be a good way to test the waters... leave the NFL OTA on FOX, but move primetime lineups to FX and ask for a rate increase on FX Network at the next negotiation.
     
  9. Apr 8, 2013 #9 of 28
    SayWhat?

    SayWhat? Know Nothing

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    I think you dropped these n't. :D;)
    See, that's what I was thinking, encrypt Primetime and the sports programming. Leave a subchannel open with reruns.
     
  10. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    Basically Fox would be shutting down their broadcast network and losing all of their affiliates. It would be a lot cheaper to transmit a single national feed or regional time zone feeds to cable and satellite than install and maintain any home subscription scrambling service.
     
  11. djlong

    djlong Hall Of Fame

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    Those over the air stations become almost worthless - and all that borrowed money that paid for buying up all those stations comes due with an even more severely reduced revenue stream.

    How many lawsuits of non-Fox-owned stations would be screaming "We borrowed money to buy a Fox station and now they're taking all the programming away - destroying the value of our station"

    Remember - those retransmission fees from cable, DTV and E* are the fees that Fox (and other OTA networks) get for THE FREE SIGNAL THEY ARE TRANSMITTING OVER THE AIR.
     
  12. mkdtv21

    mkdtv21 Legend

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  13. charlie460

    charlie460 Godfather

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    This will never happen. They'll lose their NFL contract and I would imagine be breaking a lo of contracts with local affiliates.
     
  14. myselfalso

    myselfalso Godfather

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    I don't see why they would break a lot of contracts. I honestly can't see this happening for at least 10 years, so I would think they could negotiate contracts that would position themselves to make the move. I'm sure a lot of cash would be involved...but it's not like News Corp. doesn't have the money.

    As for the NFL, the renewed deal starts in 2014 and ends in 2022. There's no reason why A) the NFL could want to take Sunday afternoon games to cable or B) FOX could be outbid. It also may not matter, depending on how the TV Everywhere concept goes. If I can watch NFL games via the Internet on my TV (or computer, phone, etc.), and FOX is still making money off the broadcast, why do they need it OTA? Presumably, most people would have the Internet, and most people would have smart TVs, as you'd think most people would have replaced their current TVs by 2022.

    It's a lot of "what if's," and while I think it's unlikely to happen even in ten years time, I think it ultimately will.
     
  15. gov

    gov Legend

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    Would there be an element in the government tempted to decree a basic tier of service from cable or satellite providers to be FREE ??
     
  16. anex80

    anex80 Legend

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    Am I missing something here? It looks like Aereo is only available in metro NYC area. Why would Fox be all up-in-arms over a startup in a small part of the country? Are there plans for Aereo to extend their reach?
     
  17. gov

    gov Legend

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    The Aereo business plan (which is what is triggering the lawsuits) keeps prevailing in court cases.

    That's the equivalent of a shot across the bow for Fox's business plan. Fox has a responsibility to their shareholders to protect them if the courts neuter their ability to make a profit.
     
  18. Beerstalker

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    Yes Aereo is planning on expanding into many other major cities.

    http://techcrunch.com/2013/01/08/ae...g-its-streaming-tv-service-to-22-new-markets/

    My guess is if they can keep winning these lawsuits they will eventually end up setting up service in every major US market, and maybe even start thinking about minor ones.
     
  19. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    Once the concept clears the court hurdles other companies will likely follow. There is a lot of trust in the company that they are following the rules. I believe Aereo uses IP address filitering as well as zip codes on payment cards to attempt to make sure that their customers are within their subscription area. But who is auditing them?

    I suspect that Fox and the other broadcasters will set up illegal accounts just to prove it can be done. Personally I doubt the validity of their "one antenna serves one subscriber" claim. But if they prevail the decision may affect how channels are carried on DirecTV and DISH Network.
     
  20. Gloria_Chavez

    Gloria_Chavez Godfather

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    And when Fox informs Aereo of an unlawful account, I'm certain that Aereo will disable said account, the same way that Youtube takes down copyrighted content when Fox informs Google of its existence.
     

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