Six strikes

The major ISPs have agreed with media companies to implement a “six strikes” program. Under the agreement, when content companies report to an ISP that they believe an ISP customer is accessing illegal content, the ISPs will implement a series of notices intended to get the customer to stop. Ultimately, the customer could be terminated by the ISP if they cease the activity.

The problem with this approach is that it is based merely on claims made by private companies, with no judicial oversight whatsoever. In effect, the ISPs become cops for the media industry and the media industry has the unilateral power to block (or severely degrade) service for those accused.  Imagine if a private company could go to the phone company and accuse a customer of using his phone to commit a crime and demand that the phone company take action, including disconnecting the phone. Would we agree to that approach? Since when do private companies engage in law enforcement?

The Center for Democracy & Technology, along with Public Knowledge, said in a joint statement they were concerned about the accord. “We believe it would be wrong for any ISP to cut off subscribers, even temporarily, based on allegations that have not been tested in court,” the groups said.

Corynne McSherry, the intellectual property director at the Electronic Frontier Foundation, also had concerns. She added, in a telephone interview, that the EFF was “pretty disappointed that ISPs have agreed to serve as a propaganda agent for big media.”

If a media company believes that a person has illegally stolen their content, the law provides existing remedies.

The Neflix secret (updated)

Image representing Netflix as depicted in Crun...

Image via CrunchBase

Analysts have been arguing for months that Netflix is over-valued, given that it creates (almost) no original content. Rather it merely bundles the output of the creative entertainment engines. Jonathan Knee, at the Atlantic, argues that the Netflix success story should really be no surprise. Content aggregators have long been more profitable than creators. Worth a full read.

In fact, the dirty little secret of the media industry is that content aggregators, not content creators, have long been the overwhelming source of value creation. Well before Netflix was founded in 1997, cable channels that did little more than aggregate old movies, cartoons, or television shows boasted profit margins many times greater than those of the movie studios that had produced the creative content. It is no coincidence that although, say, 90 percent of the public discourse surrounding Comcast’s recent $30 billion acquisition of NBC Universal involved the Conan O’Brien drama or the shifting fortunes of Universal Pictures, in reality, 82 percent of the new company’s profits come in through the cable channels.

Disclosure: I own Netflix stock.

Update: And while this should be no surprise, a new study concludes that heavy Netflix streaming customers are far more likely than others to be cord cutters.

The Diffusion Group released interesting research yesterday which supports a view that I’ve had for a while: heavy Netflix streaming usage correlates with a propensity to cut back on pay-TV services. Although Netflix has strenuously tried to position itself as a low-priced compliment to pay-TV services, the reality is that for some pay-TV subscribers who have begun shifting their viewing hours to Netflix streaming, the two are more substitutes than compliments. As I’ve argued, these are primarily people who are entertainment-oriented, don’t care about live sports, are comfortable with on-demand, not live-viewing, are budget-constrained, or some combination of all of these.

Machines of loving grace

“All Watched Over by Machines of Loving Grace” is a new BBC documentary series that is amazing. It is almost surreal and covers a broad territory, from Ayn Rand to Monica Lewinsky, if you can believe that. The first episode is below. Highly recommended.

(via Marginal Revolution)

Live action “Ambiguously Gay Duo”

See how many of the live action actors you can identify. I wonder how much this cost.

June 28, 1969

On June 28, 1969, the New York Police raided a mafia-run gay bar called the Stonewall Inn. The raid triggered a powerful upraising of gay people for the first time in the United States. The uprising changed the tide of civil rights in the US.

Now American Experience on PBS, has produced a history of the events leading up to the uprising and its results. If you care about civili liberties in our country, you need to watch this program.

When police raided the Stonewall Inn, a popular gay bar in the Greenwich Village section of New York City on June 28, 1969, the street erupted into violent protests that lasted for the next six days. The Stonewall riots, as they came to be known, marked a major turning point in the modern gay civil rights movement in the United States and around the world.

Watch the full episode. See more American Experience.

Apple to launch cloud TV service

This is a rumor, but according to Jefferies analyst Peter Misek,  Apple is on the cusp of launching a “new far reaching cloud-based service” focused on video.  Among other predictions, Misek claims that:

In terms of content we think some sort of subscription model also makes sense … We believe Apple has learned much from having Netflix on the Apple TV and we cannot help but feel Apple will try to improve on this model somehow. So how does Apple convince Hollywood and other content creators to license it? In our view, the best way to do that would be the model they use for App developers: let them take the vast majority of the revenue while you use the content to drive device sales and monetize it that way. We are huge fans of iTunes, but that cannot be it from Apple. There is another level coming here and we see this as one of the most fruitful potential uses of Apple’s enormous cash hoard.

Disclosure: I own Apple stock.

Downton Abbey

If you like the period dramas that were the fare of Masterpiece Theater in its early days, you will love Downton Abbey, presented on Masterpiece Classic.  It is a richly produced story, focused on the upstairs and downstairs life at said Abbey in 1912, just prior to the outbreak of WW I.  Season 1 is now available via Netflix streaming (Netflix link). You won’t regret watching.

6 Japanese networks cover the earthquake in real-time

This video shows six Japanese television networks and how quickly they switched to earthquake coverage and warnings in real time. NHK was almost immediate. But the others seem woefully slow, given that the earthquake occurred in mid-afternoon local time. (via Colin Peters)