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To: RAT who wrote (7916)	8/7/2000 10:26:07 AM
From: elmatador	Respond to of 12823

MSO's are retailers. They buy content packages and re-sell it over their networks.

To: RAT who wrote (7916)	8/7/2000 11:50:00 AM
From: lml	Respond to of 12823

RAT: When I refer to content ORIGINATORS, I refer to the production companies that produce & create the content, who then sell that content to the content channels of distribution, the cable channels. It is a fact that some cable channels distributor produce their own content (ie. Original ShowTime Movie; ESPN, MTV, etc.) But other channels purchase their content either in bulk (ie. TBS, AMC & the like) or retail (ie. NBC purchase of broadcast rights from the NBA or the IOC/Olympics). So, in this respect, you are correct, and my comment "[t]hese companies, in turn, pay fees to the cable operator to carry their content & the appurtenant advertising" likewise stands corrected. To be honest, I do not know exactly how these deals are cut. But I do know that advertisers pay to acquire time, or "space," within a particular timeslot occupied by its selected content. In turn,by PURCHASING content that will attract viewers, the cable operators are thereby in a position to attract their own advertisers who wish advertise to local subscribers of the franchise or clustered system. My comments and analysis were focused on how advertising revenues might be altered by the convergence of Internet & Digital TV going forward. Should an MSO offer all the services we are talking about here, and should a significant portion of an MSO's subscriber base opt not to watch TV, but instead surf the Net, how will this impact the market price for content on the cable platform, which in turn is really represented by the success of advertisers in reaching their markets & enhancing sales of their products and/or services. The foregoing was the focus of my discussion, and I apologize for creating a misrepresentation of the actual INTER-FLOW of dollars w/i this model. But the bottom line of the analysis is to assess the value of advertising dollars flowing into the aggregate model by the advertisers, which really is to measure their effectiveness upon the purchasing habits of consumers as determined by their viewership on the cable platform, whether it be broadcast or via the Internet.