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How Google TV Could Hand Netflix The Entire Streaming Universe

Discussion in 'Google TV General Discussion' started by JimMariner, Oct 23, 2010.

  1. JimMariner

    JimMariner Member

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    I personally can’t think of anything stupider for the big broadcast networks to do than give their shows to Google (NSDQ: GOOG) for free. Why ? Because they are finally getting BILLIONS of dollars in retransmission fees from their distributors. This is new money. It is found money. It is money they are fighting for. Just ask Fox and Cablevision (NYSE: CVC) what they think of each other this week.


    The idea that they would take and fight for money from their distributors, who generally are the same ISPs that Google TV delivers content over, and then offer the exact same shows for free through Google TV, or any aggregator that expects that content for free is probably one of the dumbest concepts ever.
    Now if Google were to go to those networks and offer them money per month for every buyer of a Google enabled device or TV, that would be different. Then they would be a tv provider competing with the rest and they should take their money. Think Google will ever do that ? I don’t.


    So giving the same content they not only charge their distributors for, but also charge their local affiliates for to Google for nothing or for a share of revenue ? STUPID.


    If Google sticks to their guns of not paying up front for content like Netflix (NSDQ: NFLX) does, they will have handed Netflix the entire streaming universe on a platter.


    Did anyone else see the report that Netflix streaming consumes 20pct of download throughput during weekday primetime hours ?
    If this is true. Its one more reason to think that Netflix has won the streaming wars and those broadcast networks would be moronic to give their content online away for free. Why ?
    First of all, do you know the difference between Netflix and Google when it comes to content ? Netflix pays up front and offers minimum guarantees. Google and everyone else for that matter, pays a commission based on ad sales. (which works wonderfully on Youtube for them)


    So riddle me this batman. Netflix is on Google TV , correct ? Given that Netflix pays and Google TV doesn’t, why wouldn’t/shouldn’t the broadcast networks offer all of their shows to Netflix as a way to reach Google TV users, knowing that they will get paid for their content. Paid HUNDREDS OF MILLIONS OR MORE for their content.


    All you internet pundits want the broadcast networks to give the content away for free. THAT IS STUPID. Get Netflix to pay you on a per subscriber basis on a par with what your other TV providers pay you. Netflix becomes a competitive TV provider. BRILLIANT. You get paid. You reach Google TV users and non Google TV users.
    Of course you basically cede to Netflix control of the streaming content world. You give their streaming only subscriptions a unique value beyond old shows and movies. Goodbye Hulu as well.


    Of course once they get the broadcast nets, how long until they add the cable nets like ESPN (NYSE: DIS), Disney, etc., etc. ?
    Back to the Netflix using 20pct of bandwidth. Now that they have gotten there, it is going to be easier for Netflix than anyone else to grow their bandwidth usage. They can add streaming subscribers at a controlled level and it could work. Growing their usage as a percentage of total bandwidth consumption quickly becomes a trojan horse in the streaming wars. They are consuming so much bandwidth, they literally are blocking out the ability of anyone to compete with them.


    If Netflix gets to 25pct do you think Google is going to be able to also get to 25pct during primetime and all of the sudden 50pct of the internet’s bandwidth during primetime is allocated to streaming tv originated shows, movies and other video ? Of course not. And that’s before consideration for Youtube. How much bandwidth in primetime does and will Youtube use ? After you combine Netflix and their growth to Youtube and its growth, what kind of internet bandwidth is going to be left for anyone else for streaming TV to millions ?


    There will be big problems and lots of quality and delivery issues long before we get close to those percentages. Leaving Netflix in a phenomenal position. They get to adapt to a declining available bandwidth environment with an existing product , revenue and subscriber base. There is no such thing as equal access when you are blocking up 25pct of the lanes on the highway 24×7. The others can’t even get on the ramp.


    Their competitors have to figure out how not only how to overcome the technical hurdles of reduced available bandwidth, but also a business model since no one will want to give content away for free when Netflix can pay them.


    Netflix is smart as ****.


    Netflix is also great for traditional TV providers. TV works. TV works for any number of subscribers or viewers. 100pct of the digital bandwidth that TV uses is designed, managed and operated purely for the distribution of TV and complementary features. It will work.


    Netflix should end up as the only “TV” provider that truly works on the internet, Which means that content providers like the broadcast and cable networks can be paid by Netflix on a per sub basis for their subs who want to subscribe via the net, and from traditional tv providers for those who want buffer free, (relatively) full quality TV the old fashioned way.


    Oh, and one more thing. Expect your internet bills to go way way up as ISPs make it clear that all this video over the internet is going to require billions in upgrades. The irony is that while you may not like paying for cable channels you don’t watch. You will end up paying for cable channels on the internet that you don’t watch as well. In this case you will be paying via higher net bills for the extra bandwidth required to stream cable channels that your neighbors like to watch



    Mark Cuban
    Oct 23, 2010 9:09 AM ET
    Source
     
  2. nagmier

    nagmier New Member

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    Wow nice find Jim, and Coming from Mark Cuban no less... Interesting indeed... I resubscribed to Netflix after a 2 year absense specifically for streaming content over my Wii and Revue that will be here Monday
     
  3. nerdkill

    nerdkill New Member

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    am i the only one that didn't know that was from mark cuban until the end? the problem with the argument is that google t.v. is not really a content provider, it's a delivery service. google t.v. just simplifies watching online content. google's only reason for google tv is to keep you online so you do more searching, it's up to the networks to figure out how to make money. they may want to start with better programming. i still for the life of me can't figure out what the difference of watching commercials from your cable provider or online is (other than i can fast forward the commercials on my t.v.) if the networks were smart they would open up to google t.v. and add support it.
     
  4. alphawave7

    alphawave7 Moderator Staff Member

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    "Netflix is smart as ****"

    Smarter than you, Mark! :) Complete sentences would be nice, and sorry you're so jealous over Netflix. :p
     
  5. Brian

    Brian New Member

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    Hulu has never given away anything for "free", you have to watch ads. And I pay for Hulu Plus and I still have to watch ads. I think Hulu is dumb not Google. I'm about to stop paying to watch on Hulu cause I can't do it on my GTV, but I can do it on my old blu-ray player. I don't really get why its OK for Samsung and other TV and Blu-Ray makers to have Hulu Plus, but not Google, now that is dumb.
     
  6. alphawave7

    alphawave7 Moderator Staff Member

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    There's talk the Hulu+ on Roku will only be $4.95/mo....at that price I'd consider it, at least for a few months, to exhaust the 500+ movie selection. Commercial programs the networks 'make' are worthless to me, otherwise..not worth seeing for free, imho.
     
  7. Esckey

    Esckey New Member

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    I have to admit that I have Netflix on six devices now. iPhone, iPad, Wii, PS3, Xbox360 and now Google TV. The best sorting and selecting for something to watch is the interface for Netflix on Xbox360. It allows quick review of categories and a better overall selection process through their flip style dashboard.

    I gave up Cable movie channels in 2008. Even with DVR, it was just annoying to find what I wanted to watch. So I can see the point in Netflix taking over. But honestly, if it gets too expensive I will drop it in a heartbeat. I still find myself going out to get a RedBox movie. Saving those few dollars over an Apple or Amazon online rental helps pay for dinner sometimes. I dropped Hulu shows when they started blocking Boxee. There are too many more choices of things to watch and I have very little time to see it all.
     
  8. nagmier

    nagmier New Member

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    Hulu+ is a fail simply because they have you still watching commercials! Thats like paying for an on demand first run movie and having to sit through commercials just like 2 years later when it runs on a cable channel... Not cool, I'd pay if I didn't have commercials, Then blocking GoogleTV doesn't help the situation as someone above pointed out every other "smart tv" has access why not GTV? While its not perfect at this point I hope it will be in the next couple of years maybe second generation hardware and software will unify it better who knows! But I'm still anxiously waiting for my Revue to show up Monday!
     
  9. timeleft

    timeleft New Member

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    As the expression goes, does Mark Cuban have a dog in this fight? You didn't think he would release a public letter that wasn't scrutinized by a battery of attorneys and aimed at producing a result favorable to his cause, did you?

    So what is his "dog," or what's his angle?
     
  10. alphawave7

    alphawave7 Moderator Staff Member

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    I haven't researched his 'angle'..but he does love to hear himself go off like that, his 2 cents are certainly more valuable than anyone else's! :p ...and attorneys would have caught the incomplete sentences, I hope! LOL (one of the reasons I hate blogs, btw..)
     
    Last edited: Oct 24, 2010
  11. faganm24

    faganm24 New Member

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    The only thing I know is he owns HDNet, so he is in the TV biz.
     
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  12. alphawave7

    alphawave7 Moderator Staff Member

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    Correct. :)
    HDNet Fact Sheet
    Fits like a glove.
     

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