In a move that is a clear breach of both anti-trust and network neutrality principles, three of the major US networks have disabled the ability of Google TV to show TV programs on any Google TV device.
The Wall Street Journal ‘broke’ the story, in other words it was leaked, because otherwise the fact that you might not be able to view ABC, CBS and NBC on Google TV may have gone unnoticed for weeks. Effectively most cable networks, which usually charge for content, are happy to let Google TV owners view entire programs where they have chosen to streaming them from their web site. But funnily enough, free to air programming, which relies entirely on advertising are missing out on the opportunity to stream to more homes for free. So paid is happy to give it away for free while free is saying, ‘over my dead body’.
It’s not a sustainable position. If Google TV takes off, and we think it will, then as it grows in influence these broadcast networks will want to have as much content on Google TV as they can. But like the major ISPs, who argue that they should not allow access to Google unless they get some of Google’s revenues, the broadcasters are holding out for the same. Of course they will be cutting off their nose to spite their face if, and when, Google represents a significant proportion of viewers. We reckon that they will only be able to hold out for around a year or so.
Hulu is also blocking the devices, and Hulu is owned by Disney, NBC Universal and News Corp, which owns Fox and 20th Century Fox. But Hulu Plus recognizes that it needs to be a partner with Google TV and is separately negotiating a deal with it. The Google TV is one of the only devices out there which is happy to let anyone watch any video on the internet on their TV, rather than partnering with particular sites and featuring only their content.
We’re pretty sure that Google won’t let Hulu Plus in without cutting a deal to carry the free parts of Hulu too. It seems odd that big content will allow any old PC user and virtually any Android handset into its viewing figures, but wishes to cut out the handful of devices which Google TV currently represents.
News has just broken this week that Netflix makes up 20% of the downloaded bytes on the internet in the US in prime time, a sure fire message that streaming TV is here to stay over the public internet. If it is the connection to the TV that these major broadcasters wish to stop then they will surely have to block any other devices which can send their streamed video to a TV set such as Boxee, due next month, and a host of Blu-ray players, but we suspect this is more of an anti-Google move.
In the past, broadcast networks have never had any say in which TV sets can receive their content, and it is only because on the internet that each device offers a particular set of interactive characteristics, for instance the precise browser it uses, that it can be identified and blocked. Just as easily Google could get around this and make Google TVs display the same characteristics as other devices such as PCs, though we suspect it wouldn’t do that.
Google’s position is that it is ultimately the content owner’s choice if it wants to restrict TV fans from accessing content on other platforms.
We could understand this move if perhaps Paramount Pictures or all Viacom content was blocked from the device, because there is a legal action between these two, but for other channels it makes little sense. And anyway Comedy Central from Viacom has been given the okay.
In contrast many cable channels seem happy to be found on Google TV and Turner was one its official launch partners. It is almost as if it is okay to allow content that is widely seen as free on the internet, snippets and trailers, but more recent additions of full shows of popular series, which many people don’t know they can get yet on the internet, is the content being blocked.
So for instance, US customers have reported that TBS, TNT and Syfy can be viewed on Google TV, despite being owned by NBC, as well as Comedy Central, the Daily Show, South Park. The Bravo channel, PBS and Spike TV are also all happy to let their web site video go out through Google TV.
And out of the major broadcasters, Fox is isolated as the only one happy not to block Google TV, which means that Glee, House, Bones, Good Guys and The Simpsons are all available for free.
This new posture by three of the four major broadcasters could catch on, and others may sense that they have Google by the throat, but it is more likely that as Google TV shows that it is not about controlling the content, but about adding something to it, the hysteria will fall away and more web sites will release content.
Sony, which was the first CE major to offer Google TV will be pretty upset by these decisions, as this risks its investment in being ahead of the game on Google TV, if the networks don’t change their position soon, so any influence that it has, will be brought to bear.