FilmOn Announces Launch Of Online Pay Service Delivering HD TV Stations
Permission Secured By Service Remains Unclear

John Eggerton
Multichannel News

9/28/2010 10:20:11 PM

http://www.multichannel.com/article/457793-FilmOn_Announces_Launch_Of_Online_Pay_Service_Delivering_HD_TV_Stations.php


Add FilmOn to the list of Web sites trying to move into the online cable 
and broadcasting space.

On the same day that broadcasters filed suit against Ivi TV for 
streaming TV station signals online without permission, and possibly to 
draft on some of the attention paid to the issue of online streaming, 
comes news (thanks to Michael Kilgore of http://www.ftablog.com) that 
FilmOn Monday (Sept. 27) launched a $9.95-per-month high-definition 
service that included what it called "premium free to air television 
channels" including CBS, ABC, NBC, Fox, KCAL and KTLA, as well as 
various international satellite channels.

Actually, the service launched in standard definition, but its founder 
says it will begin HD service Oct. 1.

"Our platform is designed to be easily customized for broadcasters and 
advertisers who wish to get into the online broadcast business quickly 
and with minimal expense. FilmOn is currently in negotiations with all 
major cable providers and plans to provide complete syndicated cable 
television services throughout the U.S. in 2011," said Alki David, 
FilmOn Chairman in the release, which identifies him as a "serial 
internet entrepreneur."

He is also described as a prankster, having publicly offered $1 million 
to anyone who streaks in front of President Barack Obama. But FilmOn 
does not appear to be any prank, and the issue is streaming rather than 
streaking.

In an interview with Multichannel News, David said that he has not 
negotiated individual carriage deals with the broadcasters, though for 
some other content he does have deals.

Ivi argues that it fits the definition of cable system when it comes to 
the statutory license to retransmit broadcast signals over the air per 
U.S. Copyright law, but that it is not a cable system when it comes to 
the Communications Act requirement to obtain express permission from a 
station before such retranmssion.

David said he sees things the same way, but that his enterprise has been 
around a lot longer than ivi (FilmOn has been in beta since September 
2009). Wanting to respect syndicated rights and copyright, David 
nevertheless noted that it is "without doubt that cable providers in the 
coming years will be using IP to deliver IP. The principle of what we 
are doing is causing a stir."

"We have contacted all of the major broadcasters," David said, "but we 
are certainly protecting ourselves on the premise of the copyright act. 
The argument is that in the future, IP is the deliverable platform of 
choice."

Ivi TV asked a court to rule that it is not infringing on copyright 
after broadcasters sent them cease and desist letters.

David said he has not gotten any letters yet, but expects them and says 
that if he does get them he will also ask for a declaratory ruling from 
the court. "Absolutely. If somebody wants a fight, bring it on," he said.

An executive with NBC had not gotten a response from its lawyers at 
press time, but a Fox executive said nobody there knew about the service.

-- 
========================================
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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