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stories filed under: "networks"
Culture

Culture

by Carlo Longino


Filed Under:
networks, tv



Network TV's Reinvention, Minus Much Reinvention At All

from the smoke-and-mirrors dept

It's no secret that these are tough times for network TV: dwindling ad spending, viewers moving away from linear channels in favor of DVRs, and others getting their shows from the web. So it's time for some reinvention, BusinessWeek says. The only problem is that its outline of the networks' reinvention doesn't really sound too different from the status quo, saying TV networks' big upcoming innovations are cutting production costs and slicing an hour out of prime time. It's clear that something needs to happen on the cost side of the equation, so perhaps these are incremental steps forward, but those cost cuts aren't going to help much if the networks don't do more to serve the changing desires and needs of their audience. But to that point, BW also says that "programs will be tailored to audiences" in the future, making one wonder exactly what they're tailored to now. The problem is, of course, instead of doing that, they're more interested in locking up their content and making it more difficult to access. There is one bit of "innovation" in the BW article, tacked on in the very last paragraph: evidently there's a new service being tested that will let friends send text messages to each other about shows they're watching. Now that sounds like a savior...

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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News You Could Do Without

News You Could Do Without

by Mike Masnick


Filed Under:
cable companies, exclusivity, internet, networks, tv, video

Companies:
comcast, hulu, nbc universal, time warner, viacom



Cable Companies Negotiating To Control What TV Shows You Can Watch Online

from the this-won't-end-well dept

Earlier this week when Hulu cut off Boxee, supposedly at the request of its content partners, there was some speculation that the real pressure may have come from the cable companies who are losing customers at a pretty rapid clip. And, while the content companies pretend to deny it, the fact that people can get so much content for free online is almost certainly contributing to that situation.

Now, in theory, this should be a good thing for the TV guys -- who you would think want as many people watching their shows/channels as possible. But, the problem is the business model. Doesn't it always seem to come down to the business model? The TV networks make so much money by selling the channels to the cable companies, that they're scared to death of losing that revenue. We saw a hint of this late last year when Viacom and Time Warner Cable played a big game of chicken over channels like Comedy Central and MTV.

However, now reports are coming out that the cable companies are negotiating with TV programmers to offer their TV content exclusively via their cable internet offerings. In other words, forget Hulu and routing around the cable company and the $80/month they're charging you. You'd have to keep your cable, even if you don't want it, just to get access to many TV shows over the internet (well, legally). Not surprisingly, both the cable companies and the TV programmers seem to like this sort of deal: the programmers continue to get their big fees from the cable companies, and the cable guys avoid losing many more subscribers. Comcast's CEO Brian Roberts is even saying "Online video is our friend, not our enemy."

And, to some extent he's right. If Comcast is going to survive it does need to look at online video as a friend, rather than an enemy -- but the problems may come about if they think that they can force customers to only get online TV if they keep their cable TV service at such a high price. Because, while these deals may make sense for the TV networks and the cable guys, they seem to be forgetting the customers -- many of whom have received a nice taste of TV online for free, and aren't going to be happy about having to pay up for it. The problem is that these cable guys aren't adding any new value. In actuality, it seems like they're looking to take away value from what's already out there -- and that never works. It will likely just lead to increased piracy, increased anger at the cable companies, and a continuing of the downward spiral. But, these days, watching old school companies accelerate their own downward spiral happens so often, you almost have to assume it's likely.

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Overhype

Overhype

by Timothy Lee


Filed Under:
control, net neutrality, networks

Companies:
aol, comcast, meebo



Ownership Doesn't Always Mean Control

from the network-neutrality dept

In the first post in my network neutrality series, I discussed the fear that without network neutrality rules, major telecom companies would engage in censorship of their customers' communications. I pointed out that if the government of Iran has trouble restricting the flow of information to its citizens, it's hard to imagine a company like AT&T or Verizon being able to do so. Today I'm going to expand on this point by looking at the more general assumption that the owner of a communications network has fine-grained control over the kind of traffic that gets transmitted across the wire. It's common for people on both sides of the debate to talk about network owners blocking, filtering, promoting, speeding up, or slowing down various content and applications. It's almost always taken for granted that if you own a pipe, it's straightforward to decide how that pipe will be used. I don't think that's as obvious as it might seem at first glance.

This is illustrated by a story that came out a couple of weeks ago: AOL is opening its IM network to third-party developers. This seems like a smart move, although as Matt Asay argues, they could have gone a lot further than they actually did. What's really interesting about this development is the back story. In reality, AOL's instant messaging network has been a de facto open network for years, despite the best efforts of AOL. During the first half of this decade, AOL became embroiled in "an elaborate game of cat and mouse" with third-party clients like Trillian. AOL would make changes to its own software designed to shut third-party clients out of their networks. The other clients would respond within hours with patches that restored compatibility. This went on for months, and Microsoft and Yahoo! tried similar tactics. Ultimately, all three companies gave up. The constant upgrades were annoying their own users and it became increasingly clear that the third party developers weren't going to back down.

This isn't technically a network neutrality question because AOL's IM "network" isn't a network in the traditional computer science sense. But I think the story has some important lessons for the network neutrality debate. One is that we should be skeptical of claims that ownership of physical infrastructure gives companies unlimited control over how that infrastructure will be used by users. One might have thought that AOL's ownership of its IM servers would give it the ability to lock out third-party clients it didn't approve of, but that's not how things worked out. Third party clients found it relatively easy to evade AOL's efforts to lock them out. And AOL was constrained in its options because it needed to preserve a reasonable level of service for its official client.

Second, the story suggests that not only can users evade blocks by network owners, but in many cases, the evasion techniques can be downright user-friendly. I was using a Mac OS X client called Fire at the time, and all I had to do to restore connectivity after AOL made one of these changes was download an updater and install it. I assume the Trillian experience was similar. While there are certainly some people who don't know how to download and install an update, there are millions of people who do, and these people served as the customer base for the third-party client.

Finally, it's worth noting how the third-party clients were able to respond so quickly when one of the IM networks tried to shut them out. Over time, the various third-party clients began sharing the libraries they were using to achieve interoperability with various IM networks. That meant that when AOL made a change to its protocol, just one person needed to make the necessary changes to the shared library, which was then quickly integrated into all the other clients. This allow them to respond much more quickly than if each client had to develop its own workarounds, and it was especially helpful for niche clients that might otherwise have lacked the manpower to keep up with AOL's changes.

Of course, it would be over-stating things to say that this proves that a network provider could never block applications or content it didn't approve of. But I think it does suggest that network providers would find content or application blocking more challenging than is commonly supposed. A broadband provider that began filtering its customers' traffic would get locked into a cat-and-mouse game with its customers, with the customers developing new ways to evade the filters and the network owners beefing up its filtering software. This would, at a minimum, be a headache for the firm's engineers and a source of bad publicity. At worst, it might begin to cut into the network owner's bottom line, because efforts to block certain applications would degrade the quality of Internet access in general and spark cancellations.

Indeed, we're already starting to see hints of the kinds of difficulties ISPs will face with Comcast's war against BitTorrent. One of the major results of Comcast's policy has been to accelerate the adoption of clients with "header encryption" functionality. As a result, the techniques Comcast is currently using to control BitTorrent use are likely to get less and less effective over time, and Comcast will have to spend still more money developing more sophisticated filtering software. It's unlikely that either side will "win" this cat-and-mouse game. But at some point, Comcast may decide it's more trouble than it's worth.


Other posts in this series:

Timothy Lee is an expert at the Insight Community. To get insight and analysis from Timothy Lee and other experts on challenges your company faces, click here.

10 Comments | Leave a Comment..

 
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