Of course it’s about money

Suddenly, and quite unexpectedly, programming from the Scripps Network – which includes channels such as Food Network and HGTV – disappeared from the AT&T U-verse lineup last Friday. This surprised just about everyone, since media reports earlier in the week seemed to indicate the two were working amicably toward a resolution of ongoing negotiations. Not so unexpectedly, both Scripps and AT&T very quickly released statements defending their actions and soundly blaming the other for the problems.

AT&T came out of the gate swinging, with the title of their press release, AT&T U-verse TV Customers Denied Fair Deal by Scripps Networks, giving a pretty good idea of their view on the issue. Scripps, on the other hand, came out with AT&T U-verse customers: This is not about money!, letting viewers know that Scripps was only interested in the viewers while implying that all AT&T cared about was money. Of course, both of these companies care about money – they are in business to make money, after all. They just look at it from two different perspectives.

AT&T wants to minimize the amount of money they have to pay to Scripps (or any provider) for programming while maximizing the way they can make money from that content. In this case that means paying once for content, and then being able to distribute the content on as many media and in as many ways as possible and charging their customers for the ability to access the content on all those media. When AT&T says, “With such an uneven playing field, they are harming AT&T’s ability to provide customers with a new video choice”, what they mean is, “With such an uneven playing field, they are harming AT&T’s ability to provide customers with a new video choice and make money doing it.”

On the other hand, Scripps (or any provider) wants to be paid as much money as possible for their content. In today’s media environment that means getting paid not for the content itself but for the rights to distribute that content, with each different possible medium (TV, web, mobile, etc) being another possible revenue stream. So when Jeffrey at HGTV says, “Accepting their demands would have restrained our ability to deliver our programs to viewers like you in new and innovative ways”, what he really means is, “Accepting their demands would have restrained our ability to deliver our programs to viewers like you in new and profitable ways.”

These two companies are not fighting over the best ways of providing programming to viewers, they are fighting over which one of them will get the most money out of these new delivery methods. We, the viewers, will pay for the programming one way or another, it doesn’t really matter who the money goes to. Do these companies really think that we believe they are acting out of some altruistic, self-sacrificing urge to make us happy?

Of course it’s about money. What’s wrong with that?

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