February 21, 2009

Is Hulu Driving People Back to Piracy?

By JANKO ROETTGERS
GigaOm

http://www.nytimes.com/external/gigaom/2009/02/21/21gigaom-is-hulu-driving-people-back-to-piracy-19007.html?pagewanted=print


Hulu caused quite a stir this week when, at the request of rights 
holders, it shut down Boxee’s access to its streaming video platform. 
While many discussed the business implications of this move, some are 
ready to do more than just talk about it. One reader wrote to tell us 
that he’s gonna stop using Hulu altogether and go back to downloading TV 
shows via BitTorrent. Lifehacker editor Adam Pash apparently had the 
same idea, given his post entitled “How to Get Hulu Content on TV 
Without Hulu’s Help.”

Granted, so far this is all just anecdotal evidence. Chances are the 
move will cost Boxee more users than Hulu in the near term. However, 
these aren’t the only dark clouds on the horizon of Hululand; longer ad 
breaks and old media conflicts could turn people off Hulu-like streaming 
video platforms. Piracy, on the other hand, is getting easier and easier 
every day, with torrent sites and other unlicensed platforms just 
waiting to embrace Hulu renegades. Maybe it’s time to send the following 
memo to Hollywood: You can still blow this thing.

Part of Hulu’s success has been the result of the frictionless access to 
content. Hulu’s promise has been to make content available to people who 
didn’t have easy access to it before, and we’ve lost count of the 
numbers of users and industry insiders alike who’ve told us how much 
easier the service is to use than BitTorrent. No additional software to 
install, no waiting around for downloads to finish, and best of all, no 
port forwarding needed in order to deal with your firewall settings. All 
of this has helped Hulu to gain a strong audience, taking in 7.2 million 
video views in January. The networks’ own offerings have been helped by 
similiar ease of use as well; for example Lost netted ABC 1.4 million 
viewers in December alone.

However, the supposedly frictionless world of online video has become 
quite bumpy in recent weeks. First there was FX pulling It’s Always 
Sunny From Philadelphia from Hulu, prompting angry responses from fans 
and an apology from Hulu CEO Jason Kilar. Then word came from ABC that 
the network is thinking about showing its web users twice as many ads. 
And then Hulu on Boxee stopped working.

And now we’re witnessing the first shots be fired in what could become a 
full-blown war between NBC and FOX on one side and CBS on the other, 
with cable providers getting ready to open up a third front with their 
own offerings. We’ve seen these kind of conflicts before, for example 
when NBC decided to pull its content off of iTunes. Only it didn’t 
really make a difference back then, because hardly anyone watched TV 
shows via iTunes. (In fact, some argue that iTunes still doesn’t really 
count.) Licensing-based blackouts like the recent move by Hulu to 
disable content on TV.com, on the other hand, are starting to affect a 
growing audience that is just getting used to this new way of watching TV.

And it’s not like these folks don’t have any other convenient options. 
Applications like the Torrent Episode Downloader (TED) make it easy to 
subscribe to whole seasons of your favorite TV show via BitTorrent, and 
established TV torrent sites like EZTV even offer P2P streaming for 
immediate access.

Others are rediscovering Usenet, the original piracy hotbed. Downloading 
content from Usenet servers used to be somewhat tricky, but a new 
generation of Usenet clients makes it possible to utilize progressive 
downloading and watch content in a streaming-like fashion. Some folks 
have even figured out how to combine Usenet with subscription 
mechanisms, making it possible to download whole seasons of a TV show 
through a Usenet service provider with an interface that is as easy to 
use as iTunes.

Hulu CEO Jason Kilar probably said it best when he titled his apology 
for yanking Always Sunny “Customer Trust is Hard Won, Easily Lost.” Now 
let’s hope that this message isn’t completely lost on rights holders.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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