On Fri, Jan 3, 2014 at 12:15 PM, Joe Hass <[email protected]> wrote:

> Jumping in quite late to this:
>
> We all fundamentally know why ABC is doing this (to goose their live+7
> numbers). It makes no sense from a reality perspective as the show airs
> with commercials both live and when streaming. The fact that either they
> can't or won't figure out how to measure or monetize the viewers who have
> the ability to watch the show via free streaming is irrelevant to someone
> who doesn't have the inside baseball knowledge we have here. This a net
> loss to them.
>
> The catch, as Kevin noted, is that most people for whom streaming would be
> an option are also likely to know of torrent sites and get around ABC's
> restrictions. If a business decides to shoot themselves in the foot, far be
> it for me to stop them.
>
> I don't think this is "actively encouraging online piracy and content
> theft" as Kevin noted. I do think they have yet to accept the proverbial 
> reality
> on the ground, are still trying to fit the square peg in the round hole,
> and seem to be breaking out larger and larger pieces of equipment to get
> said peg into said hole.
>

There are two issues here, one is the claim that removing free streaming
for a week after initial broadcast is a bad business decision that will in
the long run reduce viewers to ABC programs; the second is that there is
something immoral or illegitimate about ABC deciding to charge for
streaming during the one week window. My comments have been directed at the
second issue - I don't see anything particularly illegitimate about
charging for a product or service, particularly when it is made available
for free live, and after one week. And I don't think deciding to charge a
legitimate price makes them responsible for people who decide to steal it.

I don't know if this will be a good or bad business decision. But I don't
agree that the primary reason for doing this is to raise ABC's Live+7
ratings. For one thing, the +7 ratings are not (at least, not yet)
particularly important in determining ad rates or renewal for programs. For
another thing, while streaming of television programs within a week of
initial broadcast may be common among the relatively tech and tv savvy
people here, even among young adults streaming from the network website is
not yet the primary way that a large percentage of Americans get their
television. I suspect that even if 25% of the people who were streaming ABC
programing from the website in the 7 day window instead watch it live it
would have no detectable effect on live+7 ratings.

I think the reason ABC did this was to try to provide their cable partners
with a little more value. Whether that turns out to be a good buisines
decision will remain to be seen, but if it is a problem it will be a really
long term one. I don't think ad revenue from streaming at the network site
makes up a significant portion of ABC's income.

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