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The Media Businesses Media Television The Almighty Buck Entertainment

Viacom Nudges Some Premium Content Online, For Free 77

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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Viacom Nudges Some Premium Content Online, For Free

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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)

      by jemtallon ( 1125407 )
      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.
      • It looks like they go with pretty standard stuff on the current site. Personally, I'd be kind of amazed if they tried to make this work with something very far outside the norm to start out. They want to be sure of some reasonable chance of success.
  • by TheRedSeven ( 1234758 ) on Thursday May 29, 2008 @12:15PM (#23588625)
    ...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.
      • Re: (Score:1, Flamebait)

        by smoker2 ( 750216 )
        So you only created your content for the purpose of generating ad revenue then ? If the content itself is less valuable than the ads, then you may as well be a link farm. After all, when you first set the site up, you had no way of knowing how much(if any) revenue you would get from serving ads. Now, suddenly, your content is worth more, but not for its own sake (and is probably not worth any more to the end user).
    • by symbolic ( 11752 )
      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?

    • Re: (Score:2, Funny)

      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
      • by jedidiah ( 1196 )
        ...that and "How the Irish Saved Civilization".
    • by cliffski ( 65094 )
      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.
  • 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
    • The flip side question, of course, is, wouldn't you rather have a few beers a month if all you had to do was watch some ads?

      I'll take the beers and the ads, thanks very much, rather than abandoning both.

      • I'll take the beers and the ads, thanks very much, rather than abandoning both.
        Besides, when the ads come up, you can turn your attention away from them by sipping on those free beers.
    • How much are the advertisers paying for you to see their ad during that episode? Even at a high rate of $13 per 1000 impressions you would be looking at $.77 per episode. So sell ad free rentals for maybe $.50 and let the people who don't mind the advertising see it for free. I'm sure that it doesn't cost $13 per 1000 impression at this rate. Any body have any numbers on this?
      • I'm not sure my math was right? Check my math! Wow, I'm embarrassed. I flipped my numbers... $13.00 divided by 1000 impressions is $.013. Just over a penny per viewer. So let people pay $.05 to watch it ad free. A nickel? Who wouldn't pay a nickel? Most people would. No ads, increased revenue.
        • by elrous0 ( 869638 ) *
          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.
          • Bandwidth and hosting costs can be overlooked as the difference between an ad-supported and a paid-for view is negligible in that respect. For the latter, however, add some money for the infrastructure and an unhealthily large percentage for the payment gateway (e.g. credit card companies).
            I'm pretty sure the rates for in-video-ads are a lot higher than normal banners, especially if the content actually is preceded or interrupted for the ad.
            Even assuming a tenfold higher ad rate, though, a micropayment mo
  • 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)

      by Disfnord ( 1077111 )

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

        by milsoRgen ( 1016505 )

        You misspelled Craig Kilborn.
        Such is life when talking about the guy that left The Daily Show for anything on CBS.
      • by SendBot ( 29932 )
        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)

      by Tuoqui ( 1091447 )
      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)

      by elrous0 ( 869638 ) *
      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
  • Viacom and other Big Media have fingers in several holes right now. On the one hand, the cable providers want to keep exclusive access to their content so they can rip you off for $100+ a month for what is effectively an internet connection suited to streaming media.

    They are also watching YouTube siphon off considerable amounts of their viewership, a bunch of eyeballs that they could make much more effective use of if they controlled access.

    I do'nt think the big media companies see the internet as a ba

  • by kimvette ( 919543 ) on Thursday May 29, 2008 @01:14PM (#23589613) Homepage Journal
    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.
    • Re: (Score:3, Insightful)

      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?
    • by elrous0 ( 869638 ) *
      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 ) <`moc.liamg' `ta' `resnogls'> 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.
      • by jedidiah ( 1196 )
        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.
      • by mqduck ( 232646 )
        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.
  • Welcome to Cablenet (Score:1, Interesting)

    by Anonymous Coward
    The internet as we know it is dying. If the ISP's have their way, everything you see will be their choice at their price.

    The writing is on the wall. If we don't stand up and do some really loud screaming, the net will slowly erode to another service similar to cable television. The same rules will apply : the more you wish to see, the more you will pay.

    I remember the "good old days" when the usenet was the large part of the internet (before www ). The wailing that would go on if anyone had the audacity to p
  • You can already watch The Daily Show, online, for free, at http://www.thecomedynetwork.ca/ [thecomedynetwork.ca] Only for Canadian viewers, but still!
    • by mqduck ( 232646 )
      This summary was a little bit longer than most. I guess it's to be expected that some Slashdotters would skip it.

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