NBCU-Olympics: Cablevision Subs, Those Who Don’t Pay To Watch TV Shut Out Of Live Streaming
Whether or not you agree with it, NBC Universal’s (NYSE: GE) investment in acquiring the rights and producing Olympic multi-platform video provides at least some rational basis for controlling territorial access. But the network has far less to stand on when it comes to its temporal mind games and is in quicksand when it comes to limiting live-streaming access to cable, telecom (AT&T (NYSE: T), Verizon (NYSE: VZ) video), or satellite subscribers. That’s right. If you are an over-the-air NBC viewer or one of the increasing numbers who watch via computer, you have to know a hack to watch. Oh, the same holds true if you’re a Cablevision (NYSE: CVC) sub—the only major MSO not to agree to a separate deal with NBCU for two Olympics-only cable nets and the live streaming from NBCOlympics.com.
The result: trying to watch live video from a Cablevision zip code is like being punked. NBCOlympics.com asks for a zip code, then asks the user to select his/her cable or satellite provider from a drop-down list that includes the Long Island cable operator. The result: a red-text warning that says “We’re sorry, you will not have access to live Olympic video or long-form replays online because the TV service provider you selected is not a partner of NBCOlympics.com. Please contact your local cable, satellite or telecommunications operator for more details.” The options then are to watch highlights or go for the hack—enter a zip code and a distributor with an agreement while agreeing that you are a paid sub of that service. Verizon and AT&T could end up with more viewers claiming to be subs than they actually have.
Granted, it shouldn’t have been too difficult for Cablevision, which partnered with NBC for Triplecast (the first effort at wall-to-wall Olympic coverage), to reach an agreement that would give its online and cable subs the most access possible, including special Olympics cable channels. The company’s reply to our query mentions its carriage of NBC’s comprehensive coverage but the home of Optimum Online, the broadband service that has earned it accolades, isn’t making it easy for its own subs to see the live online Olympics. Asked for the reasoning, a spokesman replied: “We haven’t commented beyond the statement.” (Cablevision’s own Newsday Mediaweek have more details.)
But NBC’s decision to base access to the bulk of its online video coverage to those who already pay for TV (instead of opening it to all as CBS did with March Madness) runs counter to the very notion of bringing the sports that aren’t on TV to a greater audience. It could have been a great opportunity.
Side note: ESPN’s (NYSE: DIS) broadband network ESPN360 also is limited to subscribers of companies with which it has distribution deals, part of the Disney sports group’s efforts to replicate its cable model on broadband. (And, yes, most, if not all, also is limited territorially although they do tend to show major events in real time and they have found a way to provide access to U.S. military bases.) The business model routinely draws complaints here. One bonus point for NBC: at least, I can still watch NBCOlympics.com video even when I’m not at home base. ESPN360 just told me I can’t watch until I’m using my home internet connection. So much for when you want where you want it.
Posted In: Entertainment, Sports, Digital Olympics, Companies, NBC Universal, cablevision
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Comments (6)
Aug 10, 2008 3:27 PM
I’m very glad that PaidContent was the first to report on this… as it highlights the challenges surrounding the entire entertainment industry value chain with respect to rights.
Specifically on ESPN360; I would assume that the reason their implementation is a bit obtuse is due to carriage agreements with the MSOs and their requirement that it not decrease the perceived revenue per viewer they garner from such agreements. You can easily make the argument that if users had unlimited rights to view ESPN360 the necessity for upgraded programming packages and other offers from MSOs would diminish greatly in value. This would then in turn significantly impact the total revenue a cable net such as ESPN earns as it would put pressure on the value of the carriage agreement.
You will find at many companies (ESPN, NBC, ABC, etc) that there are groups that fully believe that the embrace of new media is a shift they must make to remain relevant and profitable over the next 5 to 10 years. However, with so many other hands in the industry (and many who see very little revenue from digital) this view has not tricked down to the other stakeholders who must sign off on such business models.
The IOC is an excellent example; the games they produce which are supposed to be globally accessible are mired in rights that protect each broadcasters revenue/ subscriber/ and or other model. Ironically, YouTube a US site is hosting the bulk of the international content and US viewers are locked out. This is the same reason NBCOlympics.com is not visible globally, and why many US citizens will find it difficult to view Olympic content on other sites (BBC, etc) in other countries. Of course the ultimate irony of all of this is that each network is carrying the same/ and or similar feeds of the games… so there is little difference in the content.
When Lehman downgraded this sector in July, one has to wonder if they did so because they felt the industry would fail to come to terms with rights and digital fast enough to hedge against emerging new media channels. The Olympics is demonstrating first hand just how destructive and counter intuitive the as-is structure of the industry is to consumers.
NBC should be commended for securing rights to the games and making them so readily available only; however they should not be punished for issues that are out of their control as they relate to the greater ecosystem.
Aug 10, 2008 8:05 PM
Thanks for posting this. Keep us up to date if NBC ever decides to let their OTA advertisement viewers watch the Olympics online. What’s worse is NBC’s OTA signal has been poorer for some people. I can’t even watch NBC anymore.
Aug 10, 2008 10:35 PM
HmmConvenient ... Your points about ESPN360 are right; in fact, one way they got MSOs to take ESPN360 was as a way to pitch cable broadband. And I do think NBC has some valid points about its own investment and protecting rights. But when NBC had room to maneuver—with live streaming of action that wouldn’t be on TV at all—it chose a different approach.
Aug 11, 2008 1:55 PM
You have to give NBC credit for evolving the coverage and the business model over multiple platforms over the past 10 years. Sure, we can all identify room for improvement in working toward a universal access model (any event, any time, anywhere). But I’ve seen more events and more teams from more countries this year across the PC and TV than ever before (and let’s give our friends to the north at the CBC kudos for great coverage for those of us who get their signal in the Pacific NW). The Quokka guys have to be smiling through their frustration, knowing they had a great idea back in 1997, but were just way too early.
Aug 11, 2008 2:09 PM
Agree, Virl. I’ve been thinking a lot about Quokka, one of the best of the “ahead of their time” bunch.
It does get frustrating when you realize that NBC proper is dark right now in terms of Olympics coverage and so are most of its cable nets. That leave online streaming as the major entry point ...
Aug 11, 2008 3:40 PM
The barrier that NBC has put up is a joke… I get cable from a small local company that does not have an agreement either, so I got blocked out on the first try, but it wasn’t rocket science to put in a zip from another area, and pick a major cable provider that I new serviced that area.
What I don’t get, is that my cable company has no involvement in me streaming media from the internet. I get my broadband via my phone company.
It’s like asking permission from your city bus service to ride your bike.
What I really want to see is direct download of events, so I can download just one event to my computer, and watch just that… no commercials, none of that american centric fluff coverage, athlete bios, and what not… i just want to watch the full events, not just the ones where the US dominates. I happily pay to be able to download events… but get really tired of having to setup my Tivo to record 6 hour blocks where only 30 minutes interests me, or my having to guess lucky to get into the streaming website.