Hulu Boosts Pirates By Blocking VPN Access

Saw that Hulu has implemented a block on overseas users who were accessing the site via an anonymous proxy server called HotSpot Shield.  The point of the VPN is to block the user’s IP address so that Hulu doesn’t know they are trying to access the content from outside of the US.

Currently, due to a slew of misguided and ill-conceived rules and regulations, Hulu will not provide its content outside of the US and is clearly willing to go to some lengths to keep out those dirty foreigners.

Of course, these are just regular people who really really want to see the content Hulu provides.  They aren’t trying to bypass the advertising or trying to download the content so that they can make it into DVDs to sell on the street.  They’re just fans.

By blocking their access, Hulu (and the studios providing most of their content) simple force those outside the US to use “pirate” services – either P2P bittorrent sites or streaming sites – that are easily accessible. Sites like Megavideo, Supernovatube and Ninjavideo.

Basically, by continuing to believe that they can somehow artificially limit and control where their content is consumed, Hulu (et. al.) are giving a big boost to “pirates” while simultaneously losing viewers who could help drive up the price of ads.

And of course, those who still want to watch the programming on Hulu but can’t access it will probably just go somewhere else — torrent indexes and streaming sites like Megavideo, Supernovatube and, my personal favorite, Ninjavideo.

Time Warner Cable’s Last Hope (oh, and Comcast et. al.)

There is no denying that cable companies are facing some big challenges to their business model.  Until very recently, the only reliable way to view the vast majority of programming made for TV was to pay a hefty monthly fee to a cable company for the privilege.

Over-the-air, while free, limits selection to the few networks that still offer signals and cable “black boxes” are relatively rare.

Then along came that evil internet to muck it all up for the cable companies. Since the only tangible service provided by the cable company is access, the internet is one big wrench in the works.  See, the internet provides access, too.  Until now, nearly all of that access, whether legal or pirated, was  free.  Suddenly, some people began to wonder just what they were paying all that money to the cable company for.

Well, the cable companies are wondering the same thing.  Instead of looking for a way to offer even more to their customers for a lower price, or some other direct response to the online proliferation of TV on the web, they’ve decided to do what they do best: throw up walls.

Time Warner Cable, the second-largest cable operator in the country, is working with customers here to test a subscriber model for online TV viewing. Residents who pay for HBO can watch “Big Love,” “Entourage” and other programs on their computers, using special software and a personal log-in. People who are not HBO subscribers are barred from the service.

Anyone else see the problem with these approach?

For starters, Time Warner isn’t actually offering anything that great to its paying subscribers since there are plenty of ways to view the same content online for free.  The more paywalls they erect, the more likely it is for piracy to expand in response.

The same would be true if only cable subscribers could access, say, Hulu or TV.com.  While there might be some logic in this approach with a pay-cable network like HBO the argument collapses when applied to network TV shows that are chock full of branded content and ads.

It may well be true that the evolution of technology makes things like cable companies obsolete but that doesn’t mean we should support these kinds of schemes to save them.  If there is no economic reason for cable companies to exist they should cease to exist.

(link)

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