The NBC vs. Apple war continues
Digital developments come so fast that it is, in the end, understandable why so many execs can be found saying senseless things. Even if you get one part of the equation, plain old ignorance (or corporate moneyminders above) keeps folks in a rut.
(I’ve seen this phenomenon a lot in places I’ve worked. Favorite example: The news exec who intoned to an assembled staff meeting, “We’re not getting Blackberries!” He then went on to announce that the company was going to hire some consultants—at who-knows-what cost—to analyze the news division’s reporting procedures in the digital age. Six months later, the consultants report came in. Task Item No. 1: “Reporting staff needs Blackberries.”)
Anyway, with the National Association of Broadcasters meeting next week, NBC Universal’s top digital officer, George Kliavkoff, is making news with just this sort of thing. On the one hand, there are noises coming from NBC Universal that the company would be looking into making Hulu available on cellphones. It’s pretty vague as yet, but the notion is out there.
Why? Well, here’s an AP story on the effects of debuting the premiere of a new episode for free online:
CBS Corp. executives took an unusual risk last fall before its series debut of “Big Bang Theory” — it offered the entire episode online despite the chance it would sap viewership for the TV premiere.
The show, about two geeky physicists and their beautiful female neighbor, got 90,000 views on CBS.com and other Web sites over a week, followed by a better-than-expected 9.5 million for the Sept. 24 on-air premiere.
(The story as a whole is a good overview of the state of the ad industry online for the networks.)
But there are still huge logical flaws. For example, Kliavkoff told Fortune that making video available online combats privacy:
Hulu offers users “all the value of aggregation, one-stop shopping for premium content,” Kliavkoff said. At the same time, he thinks it will reduce the illegal exchange of the content on peer-to-peer networks. “The best defense [against piracy] is providing a legitimate place for people to enjoy the content,” he said. For example, if NBC can post the latest episode of “Saturday Night Live” one minute after it’s finished airing, as happens with unauthorized posting on YouTube, viewers are more likely to watch the authorized stream.
Which is fine, except that NBC still isn’t making the video available for a move to one’s iPod. That’s where the piracy roars back in. In the digital age, if data can be moved, it will, whether NBC’s top digital officer wants it to or not. So kids will just torrent the show and stick it on their iPods.
… Which brings us back to the network’s war with the iTunes store, which it left in a huff last year because Steve Jobs wasn’t letting the company making its wares—what was the word?—more “attractive”—for its consumers. (Making prices “attractive” and “flexible” in NBC-speak is synonymous in normal English with “higher.”)
Now, over at Cnet, Kliavkoff is saying that the real issue with Apple is piracy. From an onstage interview at the Ad:Tech conference in SF, Cnet quoted Kliavkoff thusly:
“If you look at studies about MP3 players, especially leading MP3 players and what portion of that content is pirated, and think about how that content gets onto that device, it has to go through a gatekeeping piece of software, which would be a convenient place to put some antipiracy measures,” Kliavkoff said in an onstage interview at the Ad:Tech conference here.
In case you didn’t get the reference, he’s talking about Apple. Maybe I’m missing something, because the tech sites aren’t making a big deal about this, but Apple does have DRM restrictions on its video. With some tweaking you can move video files (along with anything else) around on an iPod, but even that way video from the iTunes Store doesn’t play on non-authorized computers. Kliavkoff seems to be upset that one download can be moved to more than one iPod (though each one needs to already be tied to the main computer), but in real life that’s too awkward for it to be a big piracy generator.
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Actually, what I think NBC is asking is that iTunes be rejiggered to not allow pirated (non-DRM) content on it. Not the store, but iTunes itself. That way, the ONLY way people can get content onto their iPods is through buying on the iTunes Store. If it is much harder to torrent videos and place them on your iPod, then people will turn to DRM’ed content, like from the Store.
Not a bad idea, if you are a content-provider and completely against consumers. But iTunes is huge exactly because people like flexibility. If I want to buy content, I can. And if I want to rip my own content, I can. If NBC wants to lose even more credibility and cache with the younger set, they should continue to push this. At some point, people will stop watching NBC altogether.
Thanks for taking the time to comment. Where did you see the NBC folks make that case?
I interpeted the Kliavkoff quote in the same way Chris did, i.e., the “gatekeeper” would block all non-DRM content; and in particular would not allow transfer to a player such as an iPod.
Gee…If Apple did what NBC asked then iTunes would be unable to play any song that a user ripped from his personal CD collection (that they paid for). Somehow I can’t see Apple ever doing this. The greedy execs at NBC Universal want you to have to re-purchase your music in order to play it on iTunes.
All in favor…NBC Universal Execs
All opposed…Every Apple customer…
Also - for those of us who actually create our own content - you won’t be able to transfer that to your iPod either - if NBC gets its way.
Studio execs…they remind me of the music execs about 5 years ago. All sitting around in a circle spitting in a glass in hopes of putting out the burning house around them.
[…] The NBC vs. Apple war continues “Flexibility” raises its ugly head again When prices get “attractive” Apple vs. NBC: The pissing match continues […]