Zattoo
Zattoo’s legal status is, arguably, a bit of a grey area. While the Internet TV service, which features live streaming of existing over-the-air and cable channels, claims it only does so within the law – either through government legislation or direct licensing agreements – its business model remains a controversial one. And it seems that Hollywood has finally taken notice.
Broadband TV news reports that Universal Studios and Warner Brothers are suing Zattoo for the way in which it streams German television channels ARD and ZDF. Under a 12 month license, Zattoo is able to carry both channels’ content live an “unabridged”. It’s the latter that the Hollywood studios are taking issue with since Zattoo inserts an advertisement everytime a user switches channel.
In a follow-up report, Zattoo co-founder and CEO Beat Knecht says he’s surprised that Universal and Warner have chosen to take action:
“We have been very careful playing by the rules,” said Beat Knecht, co-founder, CEO, and President of Zattoo, speaking to Broadband TV News, “Last December we blocked five Hitchcock movies from Universal at their request. We monitor very closely the broadcast schedules for any programme changes in order to comply with such requests.”
Furthermore, Zattoo claims that it doesn’t break any licensing agreements since the ads that it does show are post-roll, only visible when a users leaves a public broadcast channel, not when they first arrive or switch to another public broadcast offering. In other words, the company argues, ads or no ads, the live streams remain “unabridged”.
Also see: Interview: Zattoo co-founders
It sounds like Zattoo has a pretty good defense, but I can't say that I'd be enthusiastic about seeing this trend go any further. It's one thing to only see commercials while channel surfing because of bad timing, but another when it's your TV provider. Given all of the problems Universal and Warner Brothers have had, one would think that they'd be embracing new ad business models.
It sounds like Zattoo has a pretty good defense, but I can't say that I'd be enthusiastic about seeing this trend go any further. It's one thing to only see commercials while channel surfing because of bad timing, but another when it's your TV provider. Given all of the problems Universal and Warner Brothers have had, one would think that they'd be embracing new ad business models.
It is clear that Universal doesn't have a case here. It is just hot air.
Zattoo has been blacked out the five or so (old, may I add) Hitckcock movies, as per request of Universal.
Also, Zattoo has never shown an ad that violates any of their agreements with the broadcasters. Just as ARD/ZDF.
You may ask… why only those five movies and not some others?
Well, it turns out that Universal DOES have other movies where it could ask for the same. But these other movies happen to be broadcast on channels that are not part of Zattoo's channel lineup.
So, what does this all mean?
It simply means that Universal and others are pretty scared of this one new entrant, Zattoo, which is BY FAR the largest Internet-TV-to-PC service in existence today.
It is clear that Universal doesn't have a case here. It is just hot air.
Zattoo has been blacked out the five or so (old, may I add) Hitckcock movies, as per request of Universal.
Also, Zattoo has never shown an ad that violates any of their agreements with the broadcasters. Just as ARD/ZDF.
You may ask… why only those five movies and not some others?
Well, it turns out that Universal DOES have other movies where it could ask for the same. But these other movies happen to be broadcast on channels that are not part of Zattoo's channel lineup.
So, what does this all mean?
It simply means that Universal and others are pretty scared of this one new entrant, Zattoo, which is BY FAR the largest Internet-TV-to-PC service in existence today.