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Viacom Nudges Some Premium Content Online, For Free

Posted by timothy on Thu May 29, 2008 12:01 PM
from the another-detention-for-mr-stewart dept.
amplt1337 writes "Debates about the profitability of 'free' continue to rage, but at least one major media conglomerate — Viacom — is pushing forward with releasing paid-for content for free on the Internet. Of course, the prospect of free and easy full-length Daily Show episodes has caused some tension with cable providers, who pay a hefty premium for a heretofore-exclusive right to distribute the conglom's content (there are obvious parallels with the conflict between labels and musicians). What strikes me as really interesting is that even an old, entrenched company like Viacom has enough vision to see the opportunity for increased profits through free distribution — provided they can control that distribution (see their YouTube lawsuit) and have discretion over just how free they go. Of course, the NYT itself has had its own experience with expanding access to previously fee-based content ..."
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[+] Technology: YouTube Fires Back At Viacom 183 comments
NewYorkCountryLawyer writes "As we say in the legal profession, 'issue has been joined' in Viacom v. YouTube. In its answer to Viacom's complaint (PDF), filed Friday, YouTube says Viacom's lawsuit is intended to 'challenge... the protections of the Digital Millennium Copyright Act ("DMCA") that Congress enacted a decade ago to encourage the development of services like YouTube.' It goes on to say that the suit 'threatens the way hundreds of millions of people legitimately exchange information, news, entertainment, and political and artistic expression.'"
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  • why is Viacom suing Youtube again?
    • Re:So, remind me (Score:4, Informative)

      by wizardforce (1005805) on Thursday May 29 2008, @12:34PM (#23588957) Journal
      Viacom wants some of the pie, they claimed that youtube was unfairly benefiting from viacom's intellectual properties...
    • In other news: Viacom will be suing themselves. Stating who does Viacom think they are? Giving away our (Viacom's) content for free!?
    • Re: (Score:2, Informative)

      As I understand it, they are saying that it's possible to make money from free content and they're willing to try. The lawsuit is over the fact that Youtube is making money from their free content while it should be Viacom making that money.

      It'll be interesting to see what models they try to monetize the content - something established like banner ads and video commercials or something a little more experimental. Regardless, I think it's good for the industry that bigger companies are trying to adapt.
      • Re:So, remind me (Score:4, Interesting)

        by jedidiah (1196) on Thursday May 29 2008, @02:07PM (#23590413) Homepage
        So?

        There is a remedy in law for Viacom: tell Google to take down the offending content.

        If Viacom doesn't like the law they subverted democracy for, they really shouldn't whine like a spoiled child.
  • by TheRedSeven (1234758) on Thursday May 29 2008, @12:15PM (#23588625) Homepage
    ...what they're essentially saying with that lawsuit is that they want their content available for free, but they want to be the ones handing it out.

    This makes sense. If I'm going to give away a resource for free, I want to be the one (and the only one!) who makes money off it. If that means I have to restrict who/where/when this free content can be distributed, so be it.

    Trouble is, trying to give something away for free and then restrict where and how that something is used, doesn't quite work. They're not losing any money off the sale of that product.

    ...So how can they sue YouTube for damages when they're planning on giving it away free anyway?
    • by pak9rabid (1011935) on Thursday May 29 2008, @12:37PM (#23589005)

      ...So how can they sue YouTube for damages when they're planning on giving it away free anyway?
      Could the damages not be lost advertising revenue?
      • by Coopjust (872796) on Thursday May 29 2008, @12:54PM (#23589299)
        I could see that as the reason. What will probably happen is like the relationships that labels have with online music stores.

        Advertising is put in the video, Youtube gets a cut, Viacom gets some.

        As far as the loss of free copies...I could see some arguments. For one, if you want to pull an episode (want to drum up DVD sales or something), you can do that if you publish the content- you can't just pull other copies. They probably want copyright information included, station, producers, etc.

        Personally, I'm glad that Viacom is embracing such an idea. I don't mind a little advertising if the quality is consistently good, in sync, and I can send friends links/bookmark shows without worrying that they'll be pulled for copyright in five minutes.
    • Works for GPL'd software.
    • by twistedcain (924116) on Thursday May 29 2008, @02:28PM (#23590675)
      I have a website filled with thousands of pages of my original content. I charge nothing for people to view my content. Next to my content I have advertising, which more than pays for the time and trouble I put into creating my content. The idea of someone taking and sharing my content (whether or not they give it away for free) could be so damaging that I might no longer be able to create free, original content.
    • Kudos to Viacom - they're moving in the right direction. Now, content providers need to focus on the quality of their product - quit compressing the hell out of it so that it looks so bad that one could easily mistake it for something that preceded the original broadcast by a decade or so.
  • by poeidon1 (767457) on Thursday May 29 2008, @12:30PM (#23588881) Homepage
    the *free* is not going to lure me.
  • Its own reward (Score:3, Insightful)

    by ShieldW0lf (601553) on Thursday May 29 2008, @12:31PM (#23588893) Journal
    Am I the only one that thinks being able to influence the hearts and minds of millions or billions of people ought to be its own reward?

    Seriously, if Moses, Jesus and Muhammad were to spring from their graves and start imposing high license fees on the distribution of their creative works, does anyone seriously think their power and influence would become greater?

    • Seriously, if Moses, Jesus and Muhammad were to spring from their graves and start imposing high license fees on the distribution of their creative works, does anyone seriously think their power and influence would become greater?
      So is that an argument for or against copyright and license fees?
      • I guess it's just an observation. If you want copyright on your creative works, it's most likely because:

        i) They're crap
        ii) You know it
            • Re: (Score:3, Insightful)

              Egocentric? Are you kidding me? Giving credit to someone shouldn't even have to be asked for. You get credit so that, after you do a good job, other people know it was you who did a good job, so they come to you if they need a good job done in the future.

              Furthermore, copyright does not in any way "screw things up for the vast majority of us". Poorly done copyright screws things up, not copyright itself.

              Oh, and to address your original point, it's complete bs to say that if you want copyright on your wor

                • Re:Its own reward (Score:4, Insightful)

                  by bigstrat2003 (1058574) * on Thursday May 29 2008, @02:43PM (#23590881)
                  What the hell does any of that have to do with copyright? Copyright is a way of legally enforcing the traditional "you want it, you pay for it" means of exchange for a good which is easily obtained against the wishes of the seller. If I wish to make my scribble drawing only available to someone who has paid me for it (or bought a copy of said scribble drawing from a previous owner), that's my right. Copyright is a way for me to protect that right, it has nothing whatsoever to do with the cost of copying/distributing works. In fact, the cheaper it is to copy, the MORE necessary it is to have legal protection of the creator's rights.
                  • Re: (Score:3, Interesting)

                    What the hell does any of that have to do with copyright?

                    It's simple. If we take copyright law off the books, we can give a copy of the entire sum of human creativity to every man woman and child on earth for a penny each. And, we have the practical means to actually do it.

                    If we don't take the copyright law off the books, it would cost billions of dollars for each disc each, and we would be unable to do it, not due to any practical barrier, but because of an unfortunate side effect of the clumsy mech
                    • No. You mean if we take copyright law as it stands right now off the books. What we have at the moment is a poor implementation of copyright law. Copyright law, in and of itself, is not at all a problem with your proposed "Give everyone the total sum of human knowledge" plan.

                      Wouldn't that be better than the status quo?

                      No, because this is a matter of principle. The author of a work has the right to try to sell it if he so chooses, and no one has the right to use it without buying it if that's the case. I don't particularly care if an alternative syst

      • ...that and "How the Irish Saved Civilization".
    • so.... you do your job for free?
      seriously?
      how do you pay the rent then?
      • so.... you do your job for free? seriously? how do you pay the rent then?

        Personally? I get paid upfront by people who want me to create something specific. My entire career has been that way, I've done very well for myself, and helped billions of people along the way.

        I'm one of those creators of intellectual works copyright is supposedly in the best interest of, but really isn't.
          • Re: (Score:3, Interesting)

            Yes.

            One of the projects I'm most proud of was to build the supporting infrastructure required to transform a gaggle of several thousand work from home translators who specialize in medical translations into a coherent team, then to build infrastructure to allow them to be integrated into the corporate structure of several of the worlds largest pharmaceutical and medical equipment manufacturers as though they were just another internal department. I think I did pretty well for a guy working out of his livin
            • thats great.
              but that doesn't really translate to the movie and TV industry does it?
              Because a business model works for what YOU do, it doesn't mean it work for everyone on earth.
              • thats great. but that doesn't really translate to the movie and TV industry does it? Because a business model works for what YOU do, it doesn't mean it work for everyone on earth.

                Nice backpedal. Worked for William Shakespeare.
  • Free is overrated (Score:4, Interesting)

    by StreetStealth (980200) on Thursday May 29 2008, @12:32PM (#23588911) Journal
    Free is all well and good, but all too often it leads to crappy ads and abridged enjoyment.

    I'd still gladly pay for this content -- just not $2 per episode that I'll only watch once. What I can't imagine I'm alone in really wanting to see here, and what I have yet to see tested, is a nice, simple subscription model like Netflix that lets me pay a single monthly fee to watch a reasonable amount of new programming.

    Netflix almost offers that right now for a number of shows, except that the streaming of shows is tied to their DVD release, so you can't watch anything until the season's over. But all that's keeping them from becoming a genuine alternative to broadcast viewing is a bit of licensing, for which I'd gladly pay a few more Washingtons a month.

    All things considered, isn't skipping a few beers each month worth not having to deal with ads?
    • Free is Overrated but only in the sense that having the physical media (disc, case, booklets, cardboard sleeves, etc) is part of the experience and fun, especially when you truly enjoy the content. Granted there is much media I've consumed that I wouldn't have if it would of required the insertion of a disc or what have you. But once I find those rare gems a free stream or download just won't cut it. The sooner they realize there are places for free no-drm content just as there are places where it is worth
        • Your math works under the assumption that every single person that watches would also buy it and that there is no overhead for bandwidth and hosting.
  • by SendBot (29932) on Thursday May 29 2008, @12:33PM (#23588937) Homepage Journal
    I love the daily show and the colbert report. I had been watch TDS since cason daily was hosting it even. Two years ago I was paying $40 a month for essentially those two shows.

    But I quit watching during the writer strike and coincidentally I moved and started working more during that same time.

    When the episodes had come back, I didn't get the memo and didn't want to go through the hassle of catching up on the week or so of shows I'd missed using bittorrent.

    So I just quit watching. To viacom: you want to know why? Because it would just kill me to watch something so good by myself (or occasionally with a lady) and not be able to send friends links to particular segments on youtube. You want to selfishly hoard all your copyrighted content? Fine by me. I just won't watch it (even though I'm paying for it in some way). I won't tell my friends about it. And I won't buy anything on the commercials I'm not seeing.

    Jon and Stephen could do better. Personally I'd like to see them operate without viacom and have control over the content, but I know the challenges in making that work and making it profitable.
    • Re: (Score:2, Interesting)

      I had been watch TDS since cason daily was hosting it...
      You misspelled Craig Kilborn.
      • Re: (Score:3, Interesting)

        You misspelled Craig Kilborn.
        Such is life when talking about the guy that left The Daily Show for anything on CBS.
      • lol! That's who I was thinking of - I remember an episode where craig ferguson hi-fived jon over taking shows away from him.
    • had been watch TDS since cason daily was hosting it even.
      I think you mean Craig Kilbourn...

      Took a couple seasons before I liked Stewart but in the end he was a good replacement.
    • Re: (Score:3, Insightful)

      Yeah besides didnt Jon Stewart make fun if Viacom suing Youtube on his show? Goes to show you how popular he is that he can get away with making fun of his corporate overlords without them biting his head off.
    • Re: (Score:3, Insightful)

      Stewart, Conan, and Colbert did their best work in years during the strike. They should have told their writers not to come back. Stewart, in particular, has been TERRIBLE since the writers came back. On most nights, the audience is all but groaning.
  • given that Comedy Central's media player sucks monkey balls and is probably turning a whole bunch of potential viewers off of watching their content there, they don't just outsource this to Youtube? Can't they come to some sort of profit-sharing agreement? Youtube has a model that works. They have fairly unobtrusive ads that don't wind up crashing my computer (unlike CC). People already go to Youtube. I've never heard anyone say they like CC's site. CC could, if it wanted to, post the Youtube content on the
  • by kimvette (919543) on Thursday May 29 2008, @01:14PM (#23589613) Homepage
    There is at least one company already doing it - they have many movies and television shows online (classic TV series as well as newer series) - some full seasons, some are just a sampling, but check it out: http://www.hulu.com/ [hulu.com] - it doesn't let you take the media with you (and honestly I have not tried capturing it) and there are commercials inserted into the stream, but SOMEBODY has to pay for the content, so I'm very happy with their service. I wish I could get it on my PDA though.

    Oh, and yes, it works with Linux.

    I've submitted feature requests to them, one of which is to be able to opt out of certain advertisers. For example, I'm not going into the military so I should be able to opt out of those ads, and I don't do fast food so I should be able to opt out of those. This would make advertising less likely to be ignored, and would actually increase the value of each ad delivered to the viewer.
    • Re: (Score:3, Interesting)

      I only recently discovered hulu, so maybe it's the solution I'm looking for.

      I don't have a TV, and recently I've been experimenting with watching TV on my computer. A number of networks have some of their shows online, available via Flash players (ABC, NBC, CBS, FOX, etc.). Some problems I immediately noticed were:
      1. Most sites are heavily Flash-based, making it very difficult to navigate (or bookmark) the content you care about. I understand using Flash for the actual player, by why the navigation elements
  • ... the answer is simple and obvious, at least to me. I wish they would JUST, START, POSTING STUFF. In particular, for any news or talk show--things like The Daily Show, Nightline, and Oprah--they should just post EVERY SINGLE SHOW, 100% FREE, period. (Maaaybe with one or two 30-second ads. But it'd be better without--see below.)

    - it's time-sensitive, so there's not much of a demand for reruns or DVDs. Maybe there are things like showing The Daily Show at 11pm and again at 5 or 6pm the next day. In that cas
  • Old tech vs new (Score:3, Interesting)

    by troll -1 (956834) on Thursday May 29 2008, @01:21PM (#23589713)
    What people are gonna learn real soon is that the Daily Show doesn't need Viacom any more than a musician needs the RIAA.

    Viacom, like the RIAA, is only powerful because it controls a distribution system. But as far as delivery goes it makes about as much sense to deliver content via a one-way pipe to a dumb terminal (which is what television basically is) than it does to deliver music on plastic disks via the Interstate.

    Right now many cable companies are also ISPs so increasing Internet bandwidth is likely viewed by them as a conflict of interest because greater bandwidth is likely to draw viewers away from television to a more competitive Internet. But as time goes on consumers are gonna view more and more content on the net.

    Looks like Viacom vs. YouTube are the first shots in the revolution of old tech vs new.
    • Viacom is not the distributor... they are the owner, by virtue of owning (and partly founding) Comedy Central. The distributors are the cable and satellite companies. In fact, for that reason, the Daily Show absolutely needs Viacom... no one but the owner can give permission to make the show. Now, the talent on the show could leave and start another show. But that wouldn't be the Daily Show, now would it?
    • John Stewart makes millions of $ per year. Even the most popular on of online distribution show hosts don't even make a TINY fraction of that. The average episode of the Daily Show probably costs upwards of $100,000 per episode to produce, 5 days a week. No show distributed on the internet has anything *close* to the kind of revenue it would need to support that. Even if he could charge for it on a per-episode basis (and everyone played nice and didn't just pirate the episodes), it wouldn't even come close.
  • Deep end (Score:3, Interesting)

    by RomulusNR (29439) on Thursday May 29 2008, @01:30PM (#23589831) Homepage
    Frankly, just releasing material IN A NEUTRAL FORMAT and delivery channel would be more than sufficient. In other words -- no ITunes lock-in. It doesn't even have to be free as in beer. IFO would pay a modest, reasonable charge for each episode of Daily Show, as long as I could get it in a neutral format (video podcast, say).
    • Re:Deep end (Score:5, Interesting)

      by Aranykai (1053846) <slgonser.gmail@com> on Thursday May 29 2008, @01:40PM (#23590011)
      Or hell, distribute it with bittorrent with the fucking ad's in it on the day it airs!

      Its brilliant. They pay virtually nothing for a few servers to seed it until the swarm takes off. They get their adverts out into the open. There's very little reason to track down some ripped version with no commercials as you can get the legit one 8-12 hours sooner!

      Where is the downside to this?

      Heck, they could even require a DRM license(which would be given to anyone for free) and track exactly how many views it gets! They can do a pay per viewer model with the advertisers.
      • The same lazy people (about 60% of the population) that can't be
        bothered to program their Tivo (or are just disinterested in the
        technology in general) will gladly sit through those stupid commercials
        if they are embedded. If they are any good, they might even get ripped
        out and distributed indivdually (like the Mac 1994 ad).

        The equivalent of a dump from a Tivo or MythTV box with all of the
        commercials still intact would probably still get as many meaningful
        eyeballs.
      • Back when Gnutella and eDonkey were king, all the Simpsons episodes you could find had all the commercials in them from when they were recorded. It was a slight annoyance to have to manually skip over them, but I do remember laughing at commercials I hadn't seen in a long, long time.