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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: lml who wrote (7911)	8/7/2000 10:22:06 AM
From: RAT	Read Replies (3) \| Respond to of 12823

>>>>When you talk of "cable TV" I presume you speak of the vast amount broadcast content now sent down an MSO's pipe. We all know that today's model is based upon revenues received from advertisers who place commercials juxtaposed among the content carried by the cable operator. Advertising fees are paid to production companies who originate the content. These companies, in turn, pay fees to the cable operator to carry their content & the appurtenant advertising. In addition, the local franchise sell space directly to local advertisers who are interested in reaching their immediate market of broadcast viewers.<<<< One question here - you say that the content creators (ESPN, The Weather Channel, etc) are paying the MSO to carry the content? I think this is backwards - I believe that the MSO pays the content creator. This was one of the major gripes of the MSO (among many) during the days of rate regulation - because ESPN and the like were increasing per subscriber fees by something on the order of 20% per year while the MSO was constrained in increasing its fees to subscribers by significantly less. I think the only people paying for carriage would be infomercials on shared / half channels. Can anyone confirm or deny who pays who in this scenario? thanks vRAT