TV Networks, Studios Sue Cablevision For Helping Them Attract Viewers
from the shooting-yourself-in-the-foot dept
After Cablevision announced its plans to create a network-based DVR, it wasn't surprising to see TV networks throw a fit over it. It's even less surprising to hear that three major networks and four TV studios have now sued Cablevision. They allege fair use doesn't apply to companies that have licensed their content only for simultaneous rebroadcast, a point with which Cablevision disagrees. The bigger issue, though, isn't the legality of the service, but the TV companies' need to shut down a service that will make the public's viewing experience of their shows easier and better. The problem seems to be that they think this is a zero-sum game, that only one party can, or perhaps should, benefit here, so of course they want to set up a system that only benefits them. That's short-sighted, and when they end up hurting the end user, all they're really hurting is themselves. The current broadcast TV model is broken, and networks are struggling to adapt. It's obvious, though, that trying to shut down services to make it easier for people to watch their shows isn't the way forward.
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where's
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Industrial revolution?
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Re: Industrial revolution?
Of course they did, and the people whose business models were made obsolete fought just as hard and used many of the same tactics as today. When automobiles were introduced, people with interests in horse-drawn transport got laws enacted to limit where, when and how fast cars could drive, in some cases getting crazy legislation like requiring a flag man to walk in front of the car and warn people it was coming. The excuse for these laws was public safety ("think of the children!") which in retrospect is an obvious farce, but lawmakers bought it at the time.
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I don't think TechDirt gets it.
We can read all the articles and comments from the shooting-yourself-in-the-foot department all we want but until we quit waiting around for the networks to come up with a solution let's figure it out for them.
I once read that a hit prime time show like CSI or Friends brought in some crazy amount in advertising revenue per viewer (like $80 or something). So the networks see advertising-free content as missing that $80 in revenue (I'm not willing to pay $80 an episode for them to replace that lost revenue).
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Re: I don't think TechDirt gets it.
And don't give me the whole product placement thing either. It may work for a few products, but no advertiser would be willing to cough the same amount of money for a Coke can washed up onto the 'Lost' shore. Lets be serious here and just deal with it. After all, it's those of you who complain now about getting with the program, that will complain later when your pricing goes up.
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Re: I don't think TechDirt gets it.
No one is talking about removing ads. Skipping over them with a DVR (network-based or standalone) really is no different than getting up and leaving the room or flipping channels when they come on. That's the underlying problem here -- that advertisments aren't engaging users, and people aren't paying much attention to them, whether they're live or time-shifted. But, for the TV companies, shutting down services that cater to interested, dedicated users in the hope that they'll be able to cling on to their outmoded business model just a little longer is perferable to coming up with new revenue sources.
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Re: I don't think TechDirt gets it.
However here is the point that I think is being lost on the authors. TV networks don't make money from their TV shows, they make their money on the advertising. And when BitTorrent or apparently Cablevision makes it easy for the consumer to get the content without the advertising the advertisers (the guys paying the bills for these shows) stop paying as much for advertising because less people are seeing their advertising.
We can read all the articles and comments from the shooting-yourself-in-the-foot department all we want but until we quit waiting around for the networks to come up with a solution let's figure it out for them.
That's like saying that buggy makers make their money from selling buggies and until we come up with a way for them to make money while everyone's buying automobiles instead, we shouldn't bring up the issue.
The point is that consumers want the flexibility in their TV shows, and it's up to the companies to adjust to that reality. Trying to hold back what consumers want isn't a business strategy that makes sense.
I once read that a hit prime time show like CSI or Friends brought in some crazy amount in advertising revenue per viewer (like $80 or something). So the networks see advertising-free content as missing that $80 in revenue (I'm not willing to pay $80 an episode for them to replace that lost revenue).
You're missing the point. If the market won't support that much advertising, why should it remain? Making player piano rolls used to be a good revenue business, but the market went away. Yet, the music business lived on.
Just because one business model fails, it doesn't mean the industry fails or that we need to prop up a single business model at the consumer's expense.
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Its greed, pure and simple.
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Man... when are these companies going to learn...
They are just another outlet for the consumer to consume. And for the companies that is a good thing.
The entertainment industry needs to give up this idea of controlling every facet of the product and just get back to what they used to do best... making great movies, good T.V shows and enjoyable music... and let others worry about distribution.
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The
So while most of the big agencies, who are about as nimble as the Titanic was, are trying harder and harder to shove more and more ads down fewer and fewer throats, there are some agencies that are looking hard at alternatives. Sponsorships, product placement, viral marketing, buzz-marketing are all succeeding in getting customers without the unsolicited interruption of traditional commercial spots.
Personally, I think we're headed back to a sponsorship model similar to shows of the '50s in the short term. How many of these "Brought to you without commercial interruption by..." have cropped up in the last couple of years.
Over the long-term, we'll get to real interactive TV (more like a computer than an idiot box) you can also start adding direct ecommerce into the mix -- what we call V-Commerce. Like those jeans Sawyer is wearing in the latest episode, click on them and buy them. Want to book a vacation at the Hawaiian resort where they film Lost, click on any tree and order it up. These aren't pipe dreams, this can can be done right now with available technologies. We just need the right delivery systems.
Advertising in its current form is mostly Spam -- unsolicited interruptions. We won't see a turn around in this downward spiral agencies and advertisers face until we can turn forced advertising into opportunities to buy by request.
No amount of legal bitching and bullying is going to stop the roll of technology. Get over it, find new models or die the same slow lingering death as "commercial" television.
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