[OutsiderFan]

It's back to the future all over again.  Don't remember the exact years, but studios owning content and distribution  by also owning movie theaters, was at one time considered vertical integration and a monopoly which was ultimately broken up.

Netflix was free from anti-trust concerns when it was just distributing the content of others, but when it started producing its own content, it crossed the threshold from being a neutral distributor, to being a content competitor.  Yes, the reaction from Disney is to set up its own distribution, but by doing so it is no better than Netflix and itself will be at risk of being considered a monopoly and broken up.  Of course, by owning just 75% of the company that will be providing the distribution for Disney, may offer it a loophole in that it can claim it doesn't totally own the distribution arm it is using, to protect it from anti-trust litigation.

Why would a content rights holders pay a content creator anything of consequence when they also control distribution?  They sure as hell aren't going to want to give someone with a great content idea access to their own distribution channels if they themselves are creating content they want sold.  This dynamic would make it virtually impossible for the next George Lucas to ever have the economic incentive to create something like Star Wars. 

I know we seem to be in this hyper-capitalist age where bigger is better, and its all about profit growth, but the fundamental reality is the economy and consumers are better served when there are more choices and the market is more accessible.  This is what creates jobs, and it's especially important when automation is taking over many more jobs as time goes on.

As it related to the Pac-12 Network, as I've been saying since it started, the Pac-12 Network may end up generating the member schools the same or more money than the infamous SEC and B1G produce for their members, because those leagues have to give 50% of their profits to ESPN and FOX respectively.  It's obvious the cable TV model is dying, and PPV, a la carte streaming and on-demand video is the future.  It's only a matter of time before all the conferences offer their own streaming subscription plans that bypass cable and satellite TV.  When this happens, the Pac-12 Network will be very well positioned.

[OutsiderFan]

It's back to the future all over again.  Don't remember the exact years, but studios owning content and distribution  by also owning movie theaters, was at one time considered vertical integration and a monopoly which was ultimately broken up.

Netflix was free from anti-trust concerns when it was just distributing the content of others, but when it started producing its own content, it crossed the threshold from being a neutral distributor, to being a content competitor.  Yes, the reaction from Disney is to set up its own distribution, but by doing so it is no better than Netflix and itself will be at risk of being considered a monopoly and broken up.  Of course, by owning just 75% of the company that will be providing the distribution for Disney, may offer it a loophole in that it can claim it doesn't totally own the distribution arm it is using, to protect it from anti-trust litigation.

Why would a content rights holders pay a content creator anything of consequence when they also control distribution?  They sure as hell aren't going to want to give someone with a great content idea access to their own distribution channels if they themselves are creating content they want sold.  This dynamic would make it virtually impossible for the next George Lucas to ever have the economic incentive to create something like Star Wars. 

I know we seem to be in this hyper-capitalist age where bigger is better, and its all about profit growth, but the fundamental reality is the economy and consumers are better served when there are more choices and the market is more accessible.  This is what creates jobs, and it's especially important when automation is taking over many more jobs as time goes on.

As it related to the Pac-12 Network, as I've been saying since it started, the Pac-12 Network may end up generating the member schools the same or more money than the infamous SEC and B1G produce for their members, because those leagues have to give 50% of their profits to ESPN and FOX respectively.  It's obvious the cable TV model is dying, and PPV, a la carte streaming and on-demand video is the future.  It's only a matter of time before all the conferences offer their own streaming subscription plans that bypass cable and satellite TV.  When this happens, the Pac-12 Network will be very well positioned.