One of my students blogged about not being able to watch ABC’s Lost while studying abroad:

 “Interestingly enough, ABC was the first network to set up a deal with iTunes ‘to seek out alterative distribution venues for its show…’ I personally love that you can watch shows on online form ABC.com. Sometimes, I think its even better than watching it when it originally airs because the commercials are only 30 seconds and I can conveniently watch on Mac while I’m cozy in my bed. iTunes is also great though because when I was studying abroad in South Africa I had no television and ABC.com wouldn’t work outside the country, so I had to resort to buying shows online. I loved the fact that after I bought each show they were saved in my library and I could watch them whenever I liked, without any commercials.”

I’ve run into not being able to watch US content in Canada and was really frustrated when there was no legal way to watch shows like season 3 of The Venture Brothers, as they were being aired in the summer of 2008.  {There’s a possible workaround that I mention in my blog comment above.}  Canadian content in the US, such as the Trailer Park Boys (above) is a thornier problem, as one will need a Canadian web proxy for viewing.  Neither of these shows were available for purchase on iTunes when I was wanting to watch them.

I’m often asked, why is web content being geographically restricted?  A big issue has to do with intellectual property (IP) rights.  Here’s an exchange I saw on CBC about why the Hockey Night in Canada (HNIC) and the Stanley Cup cannot be available online to overseas web surfers:

“O: I have to ask becuase I have a [l]ot of friends who live overseas…

Every time I talk to them they ask me why they can’t watch the Stanley Cup online

AL: One of our most common complaints, for sure.

O: Oh really?

AL: Sure. Our agreement with the NHL is for Canada only. NBC and Versus wouldn’t like it if someone in Boise was watching an HNIC broadcast online, eating into their customer base. Ditto for someone in Sweden (although I don’t know who’s broadcasting competitively there).

I understand the frust[r]ation, though. We’re sending this online to a population that can watch it on main net and in HD.. why give them online? But it’s the way of the future and our numbers were, I’d say, solid for a first-time, and for games that were played in the evening (not online’s prime time by any means).”

The Balkanized Web

So, if you’re in Sweden & want to watch HNIC, you’re out of luck, despite the fact that you{and hundreds of others} watching in Sweden may have effect on revenues, since there’s nobody broadcasting it.

The contractual obligations are keeping the web content geographically bound, despite the web being decentralized and global.   The marketing limitations are keeping content from being legitimately purchased on iTunes {and sites like it} or through pay-per-view/video-on-demand via the web or cable/satellite means.  Geographic restrictions are frustrating audiences, leaving revenues on the table, and limiting the building of global audiences.

It’s clear that broadcasters are keenly interested in revenue streams, but still don’t get it, in many respects.  This Globe & Mail article really shows a lack of creativity in terms of addressing the “what should be online?” question.

“Even in the U.S., where NBC and Fox launched Hulu.com to showcase their programs online, the ad revenue generated from that business is still a mere fraction of network TV revenues, Mr. Eiley said.

In Canada last year, online advertising revenue from TV shows was about 1.6 per cent of total TV advertising revenue. The trend is troubling for broadcasters, since audiences are increasingly demanding online programming. Mr. Eiley said the networks are left with unattractive options for online content – either pack more commercials into Internet shows or charge for content.”

There are several issues going on.  Content as IP is being treated as an asset that must generate revenues, but what about trying to get more people interested in that asset in order to foster future revenue streams.  The networks aren’t always being creative about using Web 2.0 to help build buzz and audience.  They should be trying to leverage Web 2.0 to build audience, but how can you really do this when so much of what is being produced and aired is pure, mind-numbing kife.  

Over the holidays, I saw CBC really hyping Being Erica {see trailer below}, which {to me}, when I saw it in February was like watching a slightly less neurotic Ally McBeal being inserted in a sort of Coen Brothers-esque time-traveling world of suspended quirky disbelief.  Sort of.  The network used a prequel blog and Facebook, making it seem like they were really pushing to not just get the word out, but to get people hooked on the idea of Erica, because they know her.  Plus, even if you couldn’t watch the shows on CBC online, you could purchase episodes of the entire season on iTunes {above}.  

The ratings are so-so for Canada, high 500Ks down to 511K, and it looks like it will get another season, albeit with fewer episodes.  This type of support is a luxury that wasn’t afforded to Douglas Coupland’s jPod.  Not that I’m bitter, CBC.  Not at all.

1. What are your thoughts on TV content on the web?
2. What are some creative ways to use Web 2.0 to deal with IP issues and revenues?