Google is actively looking to begin an unlimited streaming subscription service, one that will rival Netflix and Amazon, and may launch it first in the UK.
The search giant has been in talks with the major studios for months but may begin in Europe first where there is much less competition.
Netflix does not currently offer services in Europe but Amazon, following their purchase of LoveFilm last month, has a strong foothold.
For now, Google has put aside $100 million for content deals with the studios.
The NYPost says the plan is being lead by executive Robert Kyncl, who left Netflix last September.
Result for: subscription service
Apple has announced the start of a subscription service which will be available to all publishers of content-based apps sold though the iOS App Store.
The service was first introduced with the release of “The Daily,” a collaboration between News Corp and Apple available on the iPad.
Publishers can now sell subscriptions to publications weekly, monthly, bi-monthly, quarterly, bi-yearly or yearly.
Apple takes its customary 30 percent from all app and content sales made through iTunes.
Says CEO Steve Jobs (via PR):
Our philosophy is simple—when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing. All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app. We believe that this innovative subscription service will provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod touch and iPhone, delighting both new and existing subscribers.
Result for: subscription service
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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