Big Media Sends A Message: We Don't Want Our Content To Be Too Popular Online

Unbelievable. Word is spreading quickly that hulu has requested that boxee remove hulu's programming from boxee. A quick primer for those who may not be familiar with all the players. Hulu is the official streaming site for several shows and networks. Shows are provided for free, but with short commercial interruptions. Boxee is essentially software to bring content from several sites like hulu under one interface. One of the most popular client devices for boxee is AppleTV (not Apple approved.)

In a blog entry, hulu explains that it's their content providers who have requested they remove their programming from boxee. Remember, boxee had been supplying hulu content with the blessing of hulu. This was not some sort of rogue operation. Why would the content providers not want to reach as large of an audience as possible? Boxee was not circumventing the ad serving system in hulu.

I believe on a per-viewer basis, most shows generate more revenue online than on TV. At the same time, online ads have dried up to some extent in the video space over the last few months, meaning we might be seeing a lot of freebie spots. For example, I can't imagine Blackberry bought as many video ads as you're subjected to when you watch streaming video on Comedy Central. 

Giving the content creators the benefit of the doubt, let's say the ad market is to blame for the cutback. Wouldn't the networks be better served by coming out and saying that, rather than giving the appearance of turning a cold shoulder to the online world? Or is there something else at work here? While I said they probably make more per person from online streaming than TV viewing, I think it's safe to say the $2.99 per episode from iTunes for purchased shows is the best deal going for the studios. Could it be that boxee on AppleTV was seen as a competitor to that revenue stream?

Networks, I know people keep saying that we're still trying to figure out online distribution, but that's not entirely true. Here's all there is to it: 1. Discover the way that a majority of people want to watch your content, then 2. Find a way to make money off of #1. You are no longer in control of how/when/where someone watches your shows.

Thoughts?

NXE Kills ATV

Today Microsoft officially launched their New XBox Experience or NXE for short. This FREE update (are you paying attention Apple?) includes not only a reinvented GUI and a host of new community and game features, but also the much hyped addition of Netflix streaming. We have yet to try it out on our box, but from what we've seen so far it looks to be full of WIN. So for $300 you can now have a multimedia appliance that will play all the music, photos and videos stored on your PC or Mac as well as stream thousands of Netflix titles instantly, oh and it plays a few games too. We can't help but wonder if Apple TV will survive another year.

Free iTunes for life? Believe it or not, it makes sense...

The rumor mill is abuzz today with reports Apple might be considering a premium service, that would allow you to pay a premium, $100 perhaps, over the normal iPod price for the privilege of lifetime downloads from the iTunes Music Store.

And believe it or not, this actually makes economic sense for everyone involved.

First a look at the numbers. As of January, Apple had sold 150 million iPods according to analysts. And from Apple's press releases, the music store has sold roughly 3.5 billion songs. Some quick division shows that's a mere 24 songs per iPod sold. Let's say the $100 premium is split evenly between Apple and the labels. That still means more than double the revenue from iTunes than now, for everyone involved. Well, of course except for the artists. (Quick tip: don't go into music for the money.)

Additionally, Apple would be an ally of all the big labels. After all, which player will they push if they're getting such a fine cut? Sure, other players will inevitably get the same deal, but it will be too late.

This would also eliminate the headache of users losing music in a hard drive crash: simply create a restore library option to bring all those songs to your new hard drive.

But what about TV shows and movies you ask... Well, they would most likely not be included. However, Apple could partner with the new industry site hulu.com to make TV shows available for free with advertising. TV show sales and movie sales, by all accounts, haven't quite caught on fire on iTunes. Imagine the possibilities to stoke AppleTV sales. And if the content's free anyhow, there wouldn't be nearly as much resistance to adding dvr functionality.

Overall, it's a sensible, though probably unlikely scenario. After all, this is the same company that still makes users pay $99 a year for .mac email...