Forget getting Netflix or Hulu Plus on TiVo-made cable DVRs

By Chris Foresman
Ars Technica

Dec 21, 2010

http://arstechnica.com/gadgets/news/2010/12/forget-getting-netflix-or-hulu-plus-on-tivo-made-cable-dvrs.ars


TiVo's Premiere-series DVRs offer access to Netflix's Watch Instantly 
streaming service, and the company has announced that Hulu Plus support 
is coming soon. But if you get your TiVo Premiere from your cable 
company, you won't be able to access either service. Rightsholders are 
using licensing terms to prevent these services from directly competing 
with paid video-on-demand from your cable provider.

Both Netflix and Hulu have confirmed to GigaOM that the contracts in 
place with content providers specifically forbid offering subscription 
service to DVRs that are leased to customers through cable companies. 
Such subscription services would compete directly with TV providers' VOD 
services which charge as much as $3 per TV episode and $10 for a movie.

This kind of access blocking isn't new, either. Movie studios have 
gotten Netflix to agree to a 28-day window for access to new releases in 
exchange for better access to back-catalog content for its streaming 
service. The 28-day window is intended to help prop up dwindling DVD 
sales as customers continue to transition to on-demand streaming video 
services. It seems content providers are happy to license content to 
Netflix or Hulu as long as they can keep it from supplanting existing 
revenue sources and can find ways to try to charge multiple times for 
the same content.

Needless to say, customers expecting access to these services are likely 
to be displeased, since TiVo boasts about the features for its identical 
retail devices. But TiVO could be in trouble as well—the company has 
been hoping that deals with cable companies could help boost its 
dwindling user base. If the Premiere DVRs from cable companies have 
significant features missing, customers may opt for other options.

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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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