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This is an old post about what is now known as Hulu, from my blogger page originally posted 12/8/06: Major Nets in Talks to Launch Their Own Video Site

1/3/2008

2 Comments

 

According to Techcrunch today the major nets have been in serious discussions about partnering up to launch a one stop video site for their tv content. Viacom, who owns Ifilm, Atom Entertainment and Disney have dropped out of the discussions, but NBC, Fox, and CBS remain at the table together.

Techcrunch reported that the motivation here is to crush Google/Youtube by suing them for copyright violations once the Nets' video site is successfully launched. Endgame would be that if you want to watch your TV shows online, you have to go to their site.

Obviously, there are pros and cons. Daily Variety reports today that Mark Cuban (whose voice is so important in this debate) commented to the press at the UBS investor confab in New York that the user-generated model is inherently incompatible with congloms; "if CBS is controlling how CBS content is used," he said, "then it's no longer a social network, it's a corporate-distribution forum."

And let's not forget that while each net clamors to be the 18-49 ratings winner week to week, they don't collectively appeal to the same demos - - and advertisers know this. Moreover, they have to be a little cautious about diluting their broadcast ratings by giving viewers the option of On-Demand programming on a massive scale.

I couldn't agree more with Mark Cuban's assessment of the incompatibility here. I also don't see how a one for all model would benefit viewers/users. Doesn't this throw competition out the window? I get that YouTube is a ubiquitous destination for TV content but there must be a way for the Nets to leverage their content individually across multiple platforms to benefit users, crush their violators, and reap rewards. Afterall, the thing the Nets know how to do is monetize and generate ad revenue. The media chiefs spent most of their time at Upfronts last year crowing about their multi-platform launches.

While I don't see these talks resulting in a deal of any kind, I cannot figure out why Fox would still be at the table. Myspace is their YouTube. NBC I get because the IVillage brand can't absorb a large digital television platform. They could consider using Heroes as a springboard for an interactive site that eventually includes other programming. CBS & their Digital Czar, Quincy Smith, are probably only months away from a major online purchase.

I will be very interested to see where these discussions lead. The rumor of a Metacafe acquisition to jumpstart things is peculiar for the collective nets. What Metacafe does might be repeatable and Bob Wright, Chairman of GE, told Charlie Rose that very thing when asked about buying YouTube. I'm sure the interactive gurus at CBS, NBC, and Fox can come up with their own Metacafe. If Metacafe is as popular as Comscore suggests, beating Yahoo Video & Myspace Video in viewers, it's going to make the Grouper pricetag look like a deal. Why not spend some smart money and purchase a giant stake in Yahoo. Create YahooNet. This will appeal to Terry Semel as it will fix their monetization issue. Yahoo, as the #1 website, has yet to be a fully tapped platform for television, and is in need of a big event.

That's how you crush Googletube and, at the same time, have the safety net of a fully operational online business, if this video craze should ever blow away when the bubble bursts on web 2.0. But that's for another discussion.

2 Comments
Seth
1/8/2008 08:44:24 am

Interesting take, based on the way events played out. It will be a wait and see game for sure to see what platform works the best, but my money is still on You Tube.

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Indiana Arborists link
11/8/2022 01:32:22 pm

Good reading your ppost

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