YouTube Seeks Streaming Rights to TV Shows, Movies
wsj.com
wsj.com
From a content creator (studio) perspective, I have to imagine this is ineffective. Might they make more money with "open" rights for anyone? "Doesn't matter who you are, pay us $0.50/hr for streaming this content and we're good."
Again, as a content provider, absolutely you want exclusive content as a reason for people to join your service. (I have Netflix for House of Cards and HBO for Game of Thrones.) But as a creator your goal should be wide distribution.
You can still do investorships in such relationships - an investor can pay for the pilot, and then the studio can charge a surplus on future episodes to reimburse the investor. The risk is in how popular the series will be, and that is the risk the investor assumes - you just need to offer them enough of future episode profits to entice them.
They could still hold a trademark on the series so nobody could impersonate them, but if someone else wanted to take Song of Ice and Fire and make a tv series nothing would stop them as long as they aren't impersonating HBO or George R.R. Martin.
This whole disaster around licensing produced works is hell and a huge burden on society and culture, and this is one spec is a sea of immorality around it.
It's effective if you consider what their real goal is: to keep any one streaming provider from becoming too popular, and then in a position to start making demands from the creators. They're deathly afraid of streaming ending up like music did with iTunes, where Apple had the record companies in an iron grip until they were broken by streaming. Thus, they want to keep each service as weak as possible, so they can remain in a position to yank popular titles if any of them get too uppity.
And, honestly, it's working. For a while, it looked like Netflix would be the movie-and-TV streaming provider, and everyone else was going to be an also-ran, but now Hulu and Amazon Video are respectable competitors. I don't really like that, but their success means that there will definitely never be one service which has everything. Everyone would just switch to that one to pay only one subscription, and that service would have way too much leverage over the creators.
Actually, I would say a creator should have stable, predictable sources of revenue. They should be in control of their revenue, so they can take charge of growth, instead of letting it happen as it may.
This requires building partnerships, effective distribution channels, and audience relationships.
"Open" rights don't necessarily align with those things.
The goal should not be wide distribution – it should be building a stable platform that allows your business thrive.
Almost every restaurant/cafeteria/whatever has an exclusive deal with Coke or Pepsi, despite the fact that I'd think it makes more sense to have diversity to match customer demands. They (the owners) find the "deals" they get more persuasive than my buying power, but since every is like that the "deals" aren't really deals at all - it's the norm.
For creators, getting paid well to make good content is the overriding objective, since that's what lets you keep creating. Amazon is putting up top-tier cash for content like the new "Top Gear", "Man in the High Castle", etc. in response to Netflix/HBO. This is a real-world manifestation of competition resulting in more content being made.
I think that net/net, this is a win for consumers (who get more awesome semi-ala carte content), creators (who are getting access to more funding for more projects), and distributors (who get exclusivity to drive people to their platform).
YouTube is a bit late to the game on this sort of thing. 5 years ago they were the only name in streaming video and they let Netflix blow by them by offering premium content that people want (kids might spend all day watching 5 min clips of video games and cat antics but adults want the premium content).
I find it hard to believe that they haven't attempted to do just that a long time ago. And probably many times since. I can only conclude that they were unwilling to give up certain rights or couldn't agree on revenue contracts in exchange for the rights to stream. Whereas the smaller companies (at the time) really had no choice and accepted those terms. Smaller companies like Netflix, Hulu, etc didn't have youtube's negotiating power, and streaming for youtube wasn't a make or break thing. They could take a pass if they so wanted. If netflix were to take a pass, it could've meant the end of their business.
Now youtube is watching companies like Netflix turn into direct competitors and has since changed its mind and is probably becoming more pliable. I think youtube had an established revenue model and these big companies (Fox, universal, etc) wanted more than youtube was willing to give up. Youtube should have realized, however, the internet is too dynamic. Sure, a direct competitor isn't going to pop up overnight, but you'd be surprised just how quick they can establish themselves.
ex: Hulu is a joint venture of Disney–ABC Television Group