Online Piracy Menaces Pro Sports (Dinosaur Media DeathWatch™)

The New York Times ^ | December 28, 2008 | Tim Arango

[abb]

An important National Football League game on a recent Saturday night was dark on millions of television screens, but it lit up an untold number of laptops.

The game between the Baltimore Ravens and Dallas Cowboys was pivotal in determining playoff teams, and it was the last home game ever for the Cowboys before they move to a new stadium. But because of a long-lasting feud between the NFL Network and many cable companies, many millions of fans could not watch the game on television. Yet they could watch any number of illicit live streams on the Internet.

After years of focusing on the pirating of highlight clips and photos on the Web, the major professional sports leagues are finding that pirated feeds of live games are now common and becoming a menace to their businesses, especially at a time when leagues are trying to build their own businesses offering live games on the Internet for a subscription fee.

“We never felt that the jewel in our crown, the live games, would be vulnerable,” said Ayala Deutsch, senior vice president and chief intellectual property counsel at the National Basketball Association.

The tangible effect on the leagues’ business today is small but the stakes are large: each sells the rights to its live games to broadcasters for billions of dollars. More important, each is trying to expand its revenue base by selling rights for games on mobile phones and the Web.

Major League Baseball has perhaps the most advanced online business of the major sports, and offers a season of games streamed online for $79.95, a price that league executives say will come down slightly in 2009.

snip

[abb]

"By the end of this decade or shortly thereafter, television networks as we know them today will cease to exist. They will be just another url on the world wide web competing against millions of others."

"Network evening newscasts will go dark after the '08 elections and their news divisions disbanded."

Walter Abbott, (b. 1950), Media observer and commentator

[abb]

ping

[abb]

http://www.nytimes.com/2008/12/29/arts/television/29webi.html?ref=business
NBC Bridges Series Gaps With Online Minidramas

http://www.honoluluadvertiser.com/article/20081228/NEWS01/812280365/1190/LOCALNEWSFRONT
Getting the news out, even in the dark
Journalists plug into power generators, Internet to do their reporting

http://www.npr.org/templates/story/story.php?storyId=98759514&ft=1&f=1006
Will Next Year Be Better For Media?

[Red_Devil 232]

The NFL TV rules are damned annoying. After the end of one game they switch to another game that is still ongoing with 2 or 3 min. left. Most of the time the game they switch to is a game I would have preferred to watch instead of the game offered.

Now I can see the end of the game. But wait! With about 1:30 left in the game some idiot panel of has-beens breaks in and they explain that because of NFL rules we can't see the rest of that game!

[abb]

http://newsafternewspapers.blogspot.com/
Nuts and bolts: How newspapers can optimize use of social media

http://www.newspaperdeathwatch.com/
RegretTheError Keeps Journalists Honest

http://adage.com/article?article_id=133462
Spending in Midst of 3-Year Drop

http://adage.com/mediaworks/article?article_id=133473
MLB Network Preps for Rollout in 50 Million Homes

http://www.mediapost.com/publications/?fa=Articles.showArticleHomePage&art_aid=97283
Hulu CEO: More Global Moves Planned For ‘09

[abb]

Of possible interest to your group.

[sweet_diane]

My mom recently read in the paper that newspapers are going out of business. She said "but what will I do while I drink my coffee if there are no newspapers!".

Now this.

Where will the teams get the money for the multi-million dollar salaries for the primadonna players and staff??? (i know, not all the players are primadonnas, but many sure seem to be)

[ETL]

For what it's worth, Yahoo has a free site where you can get nearly real-time play-by-play reports for every NFL, NBA or MLB game. Once the game has started they'll have a hyperlink beneath the boxscore (see links below) titled "Game Channel". Click on it and a special window will appear with a football field and stat columns (similar, I suppose, for baseball and basketball?). The almost live action is displayed on the field. However, it's not actual video of the game, but rather a graphic display of who has the ball and where, etc. It's pretty good if you can't get a particular game in your area. Definitely worth a try at least.

Again, the GC link will only be there after a game is underway. You will not see any right now (8:40AM ET).

NFL:
http://sports.yahoo.com/nfl/scoreboard

NBA:
http://sports.yahoo.com/nba/scoreboard

MLB:
http://sports.yahoo.com/mlb/scoreboard

[pappyone]

“...games streamed online for $79.95, a price that league executives say will come down slightly in 2009.”

People actually pay $79.95?

[abb]

More food for thought along those lines.

http://seekingalpha.com/article/112400-the-end-of-brand-advertising?source=yahoo

The result of this peculiar wastefulness was (and, for the moment, still is) a “private” consumption tax for the funding of “public” content. If the BBC is funded by the British government (i.e. taxpayers), NBC is funded by Proctor & Gamble (PG) Coca-Cola (KO), General Motors, et al (i.e., consumers of those brands). If you happen to watch your favorite sitcom without transacting with any of those brands, then you are free-riding off of those who do spend – a remarkable corollary to the piracy of paid content. The “free content” system of the past century is no different than forcing people to buy NBC content from iTunes, but instead of the cost being charged to their Visa cards, it is tacked onto the cost of their Tide, Cherry Coke, and Chevy Malibu.

Don’t expect it to last, though. As the brands recognize that they are being bilked – rather, that there is at best a tenuous link between consumption of their goods and consumption of the free content they are sponsoring, they will be less likely to foot the bill. For the beneficiaries of free content, the internet is unraveling this whole ecosystem with unwavering speed.

[ETL]

Re: games streamed online for $79.95

People actually pay $79.95?

Sure, you simply charge your friends and relatives an admission to cover the costs! :) I guess it's mostly places like bars that would pay that kind of price.

[ken5050]

There’s a classic quote, to the effect that “50% of what I spend on advertising is completely wasted; my problem isI just can’t identify which half it is..” ( I can’t recall the person who said it) The internet and other new media have made possible target, tightly focused marketing....the broad national campaigns are over with..

[abb]

http://en.wikipedia.org/wiki/John_Wanamaker

John [Nelson] Wanamaker (July 11, 1838 – December 12, 1922) was a much respected and admired United States merchant, religious leader, civic and political figure, considered the father of modern advertising. Wanamaker was born in Philadelphia, Pennsylvania.

Miscellany

* Popular saying illustrating how difficult it was to reach potential customers using traditional advertising is attributed to John Wanamaker: “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” [8]
* From 1908 to 1914, Wanamaker financed Anna Jarvis’s successful campaign to have a national Mother’s Day holiday officially recognized.

[N. Theknow]

My mom recently read in the paper that newspapers are going out of business. She said "but what will I do while I drink my coffee if there are no newspapers!".

One of the benefits of my Wii is that it can connect to the internet.

There is a weather channel for the entire globe and a news channel with National, International, Sports, Business, etc. available to view as either a slide show with locations noted on a map or you can stop anytime and read the entire story.

[LonePalm]

People actually pay $79.95?

I think that is for the whole season. That is less than $0.50 per game if you watch all 162 games for a given team.

Garde la Foi, mes amis! Nous nous sommes les sauveurs de la République! Maintenant et Toujours!
(Keep the Faith, my friends! We are the saviors of the Republic! Now and Forever!)
LonePalm, le Républicain du verre cassé (The Broken Glass Republican)

[Overtaxed]

People actually pay $79.95?

That's for the whole season...every team...every game. Well...you can't get live games that are "subject to blackout rules" but you can watch them later. And the radio broadcasts are included (radio is not blacked out.)

[relictele]

the major professional sports leagues are finding that pirated feeds of live games are now common and becoming a menace to their businesses

Sophistry.

The NFL in particular has done everything possible to Balkanize the national fan base in terms of locating expansion teams and the silly, 1960s-mindset regionalization of broadcasts. It's meant, of course, to ensure that local folks remain fans of the local team no matter how pathetic either or both are. Certain clubs can overcome this effort (Packers, Steelers, Bears, Cowboys) but without it the NFL fears you might realize that your 9-7 playoff-bound team really isn't that good year to year and you might become a fan of the 'national' teams.

Supply and demand come into play again. When it works in their favor (Sunday Ticket subscriptions, personal seat bribes, er, licenses) the pro franchises love S&D. When it works against them (streams free of ad clutter) suddenly it's a problem. But the 'net has removed another barrier to access and the buggy-whippers have no clue what to do except whine.

[sweet_diane]

"One of the benefits of my Wii is that it can connect to the internet."

We got a Wii for Christmas, thanks to our oldest daughter and my mom. :)

Haven't done much reading on it yet, but do love the golf and am becoming quite a 'Hero' on the drums. lol Can you use your existing internet or does it take yet another subscription to something?

[relictele]

I guess it's mostly places like bars that would pay that kind of price.

Believe me the commercial pricing is much steeper.

In the UK pubs showing football (soccer) on Sky Sports have a special subscription/channel with a little pint glass icon in the corner to signify they are complying with the licensing terms.

[N. Theknow]

Can you use your existing internet or does it take yet another subscription to something?

Put it on the floor, plugged it in, hit the Wii Menu and went to settings.

Pulled up "connections," it asked "wireless" or "wired" and then I clicked on the wireless and it found all the connections in the neighborhood.

Clicked on mine and I was good to go.

You can also use your connection to compete online with other players in certain games. I challenge my grandaughters in Minnesota.

It also has an SD slot so you can view movies and/or photos on your TV with background music.

Hint: Click here to check out the Wii-Fit. It is awesome. My wife and I challenge each other every day to work out.

[sweet_diane]

Thanks! You certainly are 'N. Theknow'. :)

Hubby and I have talked about getting Wii-Fit, thanks for the info!

[abb]

http://www.washingtonpost.com/wp-dyn/content/article/2008/12/26/AR2008122601144.html
A Farewell Hope for The Post’s Future

http://www.medialifemagazine.com/artman2/publish/Media_economy_57/Outlook_for_ad_spending_in_2009_Ugly.asp
Outlook for ad spending in 2009: Ugly

http://www.medialifemagazine.com/artman2/publish/Magazines_22/For_magazines_the_year_of_decision.asp
For magazines, the year of decision

http://www.medialifemagazine.com/artman2/publish/Newspapers_24/For_papers_2009_looks_even_grimmer.asp
For papers, 2009 looks even grimmer

[Brookhaven]

hulu.com is a strong model for internet media in the future (I believe it is co-owned by Fox & NBC.)

You can on-demand view any of their shows (and a number of movies), including cancelled shows. They have advertising embedded in the shows, but they ads are only 15-30 seconds long (and only one ad per break).

Netflix’s paid subscription model is the other working one. For a flat monthly fee, you can watch any of their online catalog.

I think the cable/satellite companies are the ones that will get squeezed out. I hooked an antenna to my digital TV, and noticed I could get over a dozen channels (and each of those channels carried multiple sub-channels, I don’t know the max, but I beleive the religious channel was carrying 6 seperate channels on the same signal (and the quality is WOW.) I expect that the marginal cost of adding an extra channel to a signal is probaly close to zero, so I can easily see where you could get 70+ over the air digital channels soon (plus, you have to wonder how long it will be till local channels start streaming their content, radio stations do it now.)

Between getting 70 air channels and content over the internet, in a couple of years I can easily see asking myself “do I really need those cable channels?”

Someone said their Wii hooks up to the internet. I can see where eventually the TV will become an internet appliance. I noticed the high-def TV I purchased recently is running Linux! (it is buried in the documentation in the copyright notices.) How long till the industry develops a Linux variant aimed at TV that allows you to plug directly into the internet (and add USB drives, etc...)

[Alberta's Child]

Supply and demand come into play again. When it works in their favor (Sunday Ticket subscriptions, personal seat bribes, er, licenses) the pro franchises love S&D. When it works against them (streams free of ad clutter) suddenly it's a problem. But the 'net has removed another barrier to access and the buggy-whippers have no clue what to do except whine.

I'm no fan of professional sports leagues in general, but I'm on their side on this one. There is no such thing as "supply and demand" when you're dealing with stolen/pirated material.

"Risk/reward" is a more accurate description of what's going on here. There is almost no risk in pirating live broadcasts right now (especially from overseas locations), so there is no incentive to obey the law.

[N. Theknow]

Hubby and I have talked about getting Wii-Fit, thanks for the info!

Wii-Fit gives you a daily body test and tracks your progress for weight, BMI and agility. It also keeps track of additional exercise input you do such as mowing, laundry, golf, etc. and has a total time used monitor.

After it checks you for weight and BMI, it gives you two tests for agility and then it gives you a Wii-Fit age.

Talk about being brutally honest!

I suffer from a spinal cord injury, and the first day my age was 71! I have since improved to where my best has been 27 and my worst has been 65. (Ugh. Can you say hangover?)

[abb]

http://www.mediapost.com/publications/?fa=Articles.showArticleHomePage&art_aid=97283
Hulu CEO: More Global Moves Planned For ‘09

[relictele]

What exactly is being stolen here?

[JimSEA]

"but what will I do while I drink my coffee if there are no newspapers!".

But, of course, just be careful not to spill the coffee on your keyboard!

[Alberta's Child]

Hacking a television broadcast is copyright theft in any jurisdiction.

It's worth noting that China is the place where many of the websites with these hacked broadcasts are hosted. China's failure to protect patents and copyrights is one of the single biggest reasons why that country will always be a massive sh!t-hole no matter how "advanced" they seem to get over time.

[relictele]

It may indeed be a copyright VIOLATION but a copyright itself cannot be stolen considering it is an abstract construct.

What is being hacked? Are the streamers interfering with the content or the transmission? If not then it may be a retransmission but it is not a hack if we define hacking as unlawful or unwanted intrusion.

[TenthAmendmentChampion]

At the bottom of the article was this link:

Click here to enjoy the convenience of home delivery of The Times for less than $1 a day.

LOL!

[MovementConservative]

Ok, I admit I’ll probably be one of those people who forks over the 70+ bucks for it. I don’t subscribe to cable so if I want to see any games I have to go to a sports bar. I only have 2 teams I love to follow, so for me the money spent to watch online is not a lot considering the entertainment I get from it.

[abb]

http://www.boston.com/business/ticker/2008/12/connors_not_a_b.html
Connors, Purcell not in Boston Globe deal

http://hamptonroads.com/2008/12/so-long-virginianpilot-tradition
So long to a Virginian-Pilot tradition

http://www.uticaod.com/archive/x1277299672/Editor-O-D-is-entering-an-exciting-time-under-a-reorganization
Editor: O-D is entering an exciting time under a reorganization

http://www.tallahassee.com/article/20081228/NEWS01/812280323/1010
Tallahassee Democrat changes to weather tough economic times

http://thephoenix.com/BLOGS/dontquoteme/archive/2008/12/27/the-ft-s-funky-globe-herald-rumor.aspx
The FT’s funky Globe-Herald rumor

http://www.ft.com/cms/s/0/55842f02-d3a1-11dd-989e-000077b07658.html?nclick_check=1
NY Times puts Boston Red Sox stake in play

[abb]

http://www.eiherald.com/artman2/publish/news/East_Iowa_Herald_to_suspend_print_operations08509.shtml
East Iowa Herald to suspend print operations

http://www.valley-journal.com/article/20081225/OPINION/812249979/1022&title=A%20fond%20farewell%20%85%20for%20now
A fond farewell … for now

[longtermmemmory]

translation: the league has the price point too high.

they need to lower the price and offer something better than the pirated feed.

also it is worth noting NASCAR does a superbowl every weekend.

[abb]

Is is intriguing how capitalism finds a way, isn’t it? High prices for whatever reason attract alternate solutions that benefit the consumer. It works every time it is tried.

[longtermmemmory]

i do not think advertisers get it.

They think advertising is zero result to excellent result.

They do not see that being associated with the liberal leftwing pablum of network TV is really, push customers away result to excellent result.

[abb]

http://cancelthebee.blogspot.com/
Sacramento Bee to reduce Sunday comics section from six pages to four

http://www.pegasusnews.com/news/2008/dec/29/west-and-clears-2008-review-4-star-telegram-strugg/
West and Clear’s 2008 in review #4: Star-Telegram struggles

[rollo tomasi]

Golly Gee NFL, quit being monogamous with Direct TV and maybe you can cut down on all this piracy stuff. NFL Network and Time Warner (Other cable companies) are not budging, time to open up the NFL package to cable tv subscribers.

What the heck does the NFL expect when you restrict access? Look for smoke signals of the play by play? If they are suddenly worried about “why all this piracy?” maybe they should embrace the 21st century in a more open light and open their product to more people. And yes I live in an area where I can't get Direct TV (Any dish) and the NFL Network (Thanks to the cable company).