Content Providers - Embrace the internet or die fighting it

The recent cat-and-mouse games that Hulu has been fighting against Boxee and the Playstation 3 are absolutely ridiculous. One of the reasons Hulu is so popular, even when competing against free downloads, is the convenience it offers. Without that convenience, why use it over the alternatives? If content providers try to restrict how and when their content is viewed, then customers who would otherwise willing to pay (either directly or indirectly through ads) will defect to restriction-free alternatives and feel no moral hardship for doing so. However, if there is a reasonable, legally sanctioned service that has all the features and convenience required, then what is left to decide? As long as the social norm is to pay for content, people will be internally compelled to choose the legal option.

What does this mean for the television and movie industries? Well, the current generation is quite used to paying for content: they go to the movies, they rent and buy videos, and they subscribe to cable or satellite. Up until recently, these business models have remained relatively isolated since it’s fairly cumbersome and time consuming to download video content over the internet. However, that’s changing and it’s the time for content providers to change with it. Do not make the same mistakes that the music industry made. Downloading a song is now akin to driving 5 mph over the speed limit. Sure, it might be illegal, but few people think of themselves as immoral for doing so.

The new motto for the entertainment industry should be “buy once, play anywhere.” If your customers are subscribing to cable or satellite, why not give them a website to view all the same content? If a computer crashes, why not let the user redownload anything they’ve already purchased? If a customer can view a show online, why shouldn’t they be able to play it on their phone and their television set? I certainly understand and appreciate the fact that the revenues from these new mediums are far lower than existing mediums. However, there’s something far greater at stake: the ethics of the upcoming generation. Don’t let it become a question of features. Keep the focus on morality and ensure a strong customer base for generations to come.