In Viacom Suit YouTube Has Already Won

Let’s face it. Google’s acquisition of YouTube meant that any attempt to shut the service down would fail. The best either side can hope for is a fast end to the legal battle and a clearer, more universal method of enforcing the DMCA.

Both sides have money, but Google has the advantage of being the leader in digital space and Viacom knows this. Viacom needs the YouTubes of the world. Democratization of media has happened, and traditional media companies need to follow the music industry in enforcing copyrights while allowing digital content to be distributed where consumers want it.They simply can’t afford to drag this out.

Viacom’s short, rather weak statement today makes it pretty clear that this case will never go to trial. They accept that “the site contained “truckloads” of infringing content” as past tense. All Viacom is after is compensation for past infringement. Maybe they’ll be able to pay their legal fees when all is said and done but after that they’ll go away with their tail between their legs. Whether or not Google settles, YouTube has already won.

Google Gets Serious About Television

We’ve been asking for years how long it would take Google officially to get into the set-top business. Today we have some additional details, The Times reports that Google is working with Intel and Sony on an android-based platform using the Atom processor which “will present users with a new interface for TVs that lets them perform Internet functions like search while also pulling down Web programming like YouTube videos or TV shows from Hulu.com.”

Google has reportedly built a prototype set-top box, but the box business is a short term solution while we try to push new content to the dumb screen in your living room. In the long term, the underlying software integrated into consumer electronic devices offers the greatest opportunity for the future of content on all screens.

Google has overcome many of their largest hurdles in controlling the next generation of television. Back in 2008, pre-Android when Google announced their partnership with Panasonic they faced some major challenges in quality, navigation and relationships with content producers and distributors.

Today, they have a seat at the table with the largest media and content production companies, they have turned YouTube into a high quality destination, and they have in Android a platform that can compete with anything the existing Cable operators can offer.

KIT Digital Picks Up Another Online Video Company

KIT Digital announced this morning the acquisition of Multicast media for approximately $18 million in cash, stock and assumed debt. The deal comes on the heels of closing a $15 million equity offering.

The acquisition is the latest in a string of online video purchases by the Prague based company including:

Thanks to growth through acquisitions, KIT Digital now provides online video to more than 600 companies in more than 30 countries. By making so many acquisitions they gain new technology, talent and scale, but they’re paying for it by issuing new stock, diluting shareholder value. That said, the company has come a long way since its embattled days as ROO.

Since CEO Kaleil Isaza Tuzman was installed in December of 2007 things have markedly improved. The company underwent a reverse 1:35 stock split last year which resulted in a NASDAQ listing, re-branded as KIT digital and positioned themselves as a global provider with offices in Prague, Dubai, Melbourne, Toronto, New York and London. Three years ago at this time they were spiraling toward the death pool. Today they’re a legit player, and for that, Tuzman and crew deserve plenty of credit.

NBC Direct Still Sucks Two Years Later

Last rant before leaving. NBC Direct sucks. Period. Their “HD Download” service is a great idea, especially for people who want higher quality and dont mind downloading in the background.

In case anyone is interested, check out the forum on the My.NBC message board. Thread started in August of 2008. In that entire time, there is about one message from an official NBC rep, and thats it.

Seems to me that NBC is just letting this thing die, which is a shame. However, if thats the case, they should just stop offering it as a download and trying to promote it at all. I did like the quality of the few shows I managed to download about a year ago.

Bring it back, or kill it. But leaving thousands of people stuck without a solution is a shitty way to deal with customers. And Hulu isn’t going to be the answer forever.

Weekend Pick / Pick of the Week

Since I can’t get enough concerts streaming to my living room since last week’s Trey Anastasio stream, I’m adding more concerts to my Weekend Pick and Pick of the Week for next week.

Tonight and tomorrow, March 12th and 13th, The Drive By Truckers will be live streaming two nights from Atlanta’s Variety Playhouse, courtesy of iClips.net. The concerts are being streamed to drive interest in their new album, “The Big To-Do,” which will be released on Tuesday, March 16th. Prices for the live broadcast are $6.99 per show or $9.99 for both. For those that purchase the live broadcast can also purchase their new album, The Big To-Do for $7.00 as a digital download at a later date from the Drive-By Truckers website. All pre-orders will receive an immediate Premium DRM-free 320kbps MP3, FLAC, or Apple Lossless download of the songs “Birthday Boy” and “Working This Job”.

For the less alt-country, more traditional southern rock fans, The Allman Brothers have returned for their New York City residency, this time at the United Palace Theater (instead of the usual Beacon Theater). Last year, The Allmans launched Moogis, their own live streaming service, powered by OrchardTV.

In what could be a hint towards web VOD pricing models, the Allmans are offering a subscription to the live streams of their 11-show run in NYC for $150, which also includes access to tons of their archived footage, including 50+ archived shows. That boils down to slightly less than $10 per live show, which beats the shit out of their $60, $100, and $150 priced seats to be at the venue. I’d like to see the ability to buy one show, rather than the whole run, though. Regardless, there’s a market for live VOD for bands of all sizes, and I’m looking forward to seeing some up and comers charging $1 for a show, or a weeks worth of shows, since the economics work out just fine. (NOTE: if you are an up and coming band and want help with the economics and production, please contact Ben or I for an intro and options through OVW Consulting.)

Either way, streaming from home means not looking over your shoulder for that pesky security guard. Party On!