“To win government approval to take over NBC Universal last month, cable giant Comcast Corp. agreed to let online rivals license NBC programming,” Joelle Tessler reports for The Associated Press. “Comcast also agreed not to block its 17 million broadband subscribers from watching video online through Netflix, Apple’s iTunes and other rivals yet to come.”
“Those requirements aim to ensure that the nation’s largest cable TV company, with nearly 23 million video subscribers in 39 states, cannot stifle the growth of the nascent Internet video business,” Tessler reports. “Although they apply only to Comcast and NBC, these conditions could serve as a model for other big entertainment companies in dealing with new online competitors. They also send a powerful message that the government believes these promising young rivals deserve an opportunity to take on established media companies.”
“That said, the rules make no promises. Internet companies may not be able to afford the full NBC Universal programming package as satellite TV and other rivals now do, said Thomas Eagan, an analyst with Collins Stewart. Even Netflix, with more than 20 million subscribers, would have trouble paying a tab that Eagan estimates at $1.5 billion a year,” Tessler reports. “This approach also shackles these new companies to traditional business models and inhibits innovation, added Philip Leigh, an analyst with research firm Inside Digital Media.”
Tessler reports, “Corie Wright, policy counsel for the public interest group Free Press, said she is disappointed that the government conditions do not attempt to break up a new online service being pioneered by Comcast and other subscription-television providers. This service, which Comcast calls Xfinity, puts popular cable shows on the Internet, but restricts access to subscribers. ‘The government may have effectively blessed a business model that forces consumers to pay for a cable subscription to watch video online,’ she said.”
Read more in the full article here.
MacDailyNews Take: We want à la carte choice at the individual episode level, not the network level. We most certainly do not want the current cable model of forced bundling (basic, tiers, and the rest of their assorted BS).
I. Hate. Comcast.
Comcast. grrrr only company that can make Time Warner look good by comparison.
The government has a lot of power here but no intervention at all I feel would be much worse. This is one of those times that regulation done smartly could produce reasonable results or done wrongly could set us back 10 years.
Wait a minute – Internet companies might not be able to ‘afford’ to ‘pay the tab’ for all this programming?
This makes it sound like iTunes, Hulu, etc, are paying some up front fee to get access to the programming. Aren’t the TV shows simply provided to iTunes for free, and then any revenues from sales and rentals divided 70/30 between the studios and Apple?
We don’t really know what deals content providers have arranged with the networks. For music and apps, yeah, its a 70/30 split, but i don’t think it’s ever really been established that it’s the same for videos.
Ah… so it’s secret deals cut in mysterious smoke-filled back rooms, where the little guy doesn’t stand a chance. Damn you, KableTown!
Speak for yourself, I want ALA-cart at the channel level for my cable subscription. I get 200 channels, 10 of which I want, 20 of which I occasionally want.
Yes online, the episode model is a good option to have, but options for paying for an individual channel and getting all their content sounds appealing as well. as does buying all episodes of a series at a discount over individual episode pricing.
They are scared because most programing on most channels is worthless and people wouldn’t pay for it.
I would prefer ala carte at the network level. I’m sure my viewing habits are a lot different than some but I would love to see these channels ala carte. History, Military, Science, Discovery, National Geographic, ESPN, Fox News, CNBC, TBS and USA and movies when I want them. I can get al HD local channels for free with an antenna. I’m using Netflix on Apple TV which is great, $9 a month. Comcast sux, to many BS reality shows, regurgitated movies and way to many commercials and don’t get me started on the infomercials. 10-20 channels of my choice for 10-15 bucks a month would be heaven. Come on Apple, Make it Happen!
@Steve
Right on the mark! love to be able to al carte a package similar to yours (add food network)
Love NetFlix on ATV, would love Hulu Plus as well
We became Comcast free about a year ago. All my local channels come in HD from my antenna. I get 36 channels and still watch the same 8 or 9 I watched when I paid Comcast $59 per month. I then spend nine of those dollars on Netflix, where I can get cable only TV shows like Mythbusters.
I’d pay a reasonable amount for ala carte subscriptions to channels, shows, etc. Best would be subscriptions to the NFL and NASCAR.
NBC must be selling music only because their television segment is nothing but dead air.
As long as Comcast has a virtual monopoly in most
markets, we can kiss à la carte choice goodbye.
Why are Comcast such DICKHEADS?
Comcast continue to be part of the modern biznizz trend of ‘hate thy customer’. No wonder we’re in an economic depression. We hate you back Comcast!
It is well established that the entire entertainment industry is infiltrated with crime. Media is treated as a ‘drug for the masses’ with us as the ‘users’ and the media crime lords as the ‘pushers’. Witness the bad biznizz and outright crimes of the RIAA and the MPAA, all in the name of their artists, whom they also relentlessly screw over.
And of course this all leads to the screwed over customer gladly reciprocating in kind. Witness the continuing rampant piracy of media. Piracy won’t ever stop until the crime industry and abuse of customers ENDS.
Respect your customer or expect their retaliation. That’s the flip side of business. Did they teach you MBA dweebs that little rule in skool?
😡
@MDN Take: There’s an Apple TV for that.
Comcast agreed not to block IP packets that represented video files from the iTunes store? How absolutely considerate of them.