It looks obvious

“Things should be made as simple as possible, but no simpler.” — Albert Einstein

Should the Content Provider Pay The Network Provider?

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Something that I read today in the Wall Street Journal caught my eyes. While discussing Cablevision’s new network based DVR a possible opposition might be:

While the network-based solution is appealing to cable operators, it could trigger objections from content providers. Cable companies pay media companies to carry their content[1], but are restricted in how they are allowed to distribute the material. Digital-video recorders sidestep such concerns because, by operating in people’s homes, they are covered under "fair-use" provisions for content.

Cablevision believes that there should be no difference. "We think the copyright [for a] network DVR is the same as for a physical DVR in a house where the customer uses the material for their personal use," Mr. Rutlege said last month.

This makes the telecom companies plan to charge content providers, such as Google, for premium service even more nonsensical than I thought before. It seems like the telecom companies, while trying to give their own content services unfair advantages, ignoring the fact that people using the network for the content. If AT&T will block Google content the result will be less users for AT&T broadband not for Google.




[1] Emphasis by me

Written by Rogel

March 27th, 2006 at 8:58 pm

Posted in The Free Market


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