It looks like Hulu, the streaming video service owned by NBC Universal, News Corp & Disney is preparing to become a publicly traded company. The New York Times is reporting unnamed sources indicated an IPO (Initial Public Offering) could happen as early as this fall.
Assuming they can convince potential investors their new subscription service, Hulu Plus, can be profitable, there’s still another hurdle to overcome. Hulu’s management, led by ex-Amazon.com executive Jason Kilar, have been proponents of getting Hulu playing on every screen possible. But some of Kilar’s better decisions have been undermined by Hulu’s owners.
It’s quite possible the insider information given to Times reporters was intended to see how potential investors respond. An IPO may wait if their reaction isn’t positive.
But assuming they do go public eventually, Kilar and his team will need less oversight from Hulu’s content providers. Those providers have been resistant to the idea of Hulu’s free (ad supported) content making its way to TV screens through devices like media center PCs and game consoles.
Looking at it strictly from Hulu’s point of view, this seems like a big barrier to attracting subscribers for Hulu Plus. The problem is Hulu’s content owners are trying to solve the wrong problem.
The question isn’t whether some type of free internet distribution will compete with traditional television services. The competition, both licensed and unauthorized, is already there and the market isn’t going away just because they don’t cater to it.
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Result for: content owners
YouTube has reported this week that the streaming video giant will soon increase the video upload limit to 15 minutes, from the current 10.
While most uploaded videos are well under the 10 minute current limit, longer form works, (say an hour long movie) will now only need to be chopped into four installments instead of six, surely a welcome relief for some.
Until now, only YouTube Partners and other content owners were able to upload video longer than 10 minutes, leaving amateur filmmakers on the outside looking in.
Joshua Siegel, YouTube’s product manager says removing the limit was the most popular request by YouTube users.
Additionally, the site has started a new promotion dubbed “15 minutes of fame.”
Says the site: “Imagine that this video is all the world will ever know about you: what would you want to communicate? What will be the enduring stamp you’ve left on us all? Tag your video with “yt15minutes,” upload it by Wednesday, August 4, and we’ll select a handful of people to truly gain their 15 minutes of fame by featuring them on the YouTube homepage in a future spotlight.”
Result for: content owners
RIAA President Cary Sherman recently posted a statement responding to last week’s summary judgement in the Viacom lawsuit against YouTube decrying the decision as a “dangerously expansive reading of the liability immunity provisions of the DMCA.” He also called it “bad public policy.”
He went on to claim the decision will “will actually discourage service providers from taking steps to minimize the illegal exchange of copyrighted works on their sites.”
This is nothing surprising coming from the RIAA. Like the MPAA and Business Software Alliance (BSA), they have consistently argued service providers should be responsibile for identifying copyright infringement rather than the content owners themselves.
But as Judge Louis Stanton pointed out in his decision on YouTube’s DMCA defense, this responsibility falls solely on the shoulders of the content owners except in rare cases where the infringement is obvious without any investigation.
He wrote, “The DMCA is explicit: it shall not be construed to condition “safe harbor” protection on “a service provider monitoring its service or affirmatively seeding facts indicating infringing activity.””
Judge Stanton went on to explain, “the present case shows that the DMCA notification regime works efficiently,” pointing out that it took less than a single business day for YouTube to remove nearly 100,000 videos once they received Viacom’s takedown notices.
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