NBC to offer free "NBC Direct" download service, iTunes competitor
By Paul Miller 
posted September 19th 2007 11:40PM
posted September 19th 2007 11:40PM
Apparently a move to Amazon Unbox isn't all that's in the cards for NBC's lineup of television programming, newly free of those iTunes shackles. The company is going to start testing a new NBC Direct service in October with full, free downloadable episodes which can be stored up to seven days on Windows PCs. The shows will be on offer for a week as soon as they've aired, and will include imbedded, un-skippable ads. But that's just for starters, apparently NBC wants to eventually transform the service into an iTunes-competitor, with pay-to-download episodes. "We did this to eliminate the middleman," says NBC's Jeff Gaspin. That they did, and we suppose we finally know what NBC was talking about when it comes to "packaging options."[Thanks, Webon]
One day NBC Universal will beg Apple to put their shows back on iTunes.
So the question I guess will be how do I download it on my PC and then take it to the living room to watch. Will these new downloads be iPod compatible Mpeg-4 or require some extra hardware?
If the silly trend were to continue, let's see. I'll need an NBC/Universal player for my some shows. An ABC/Disney player for those shows. Get a FOX player for all those shows. CW, CBS, others? Better get a server rack.
Well, I think the idea of the "middle man" sounds like somehow they are still trying to justify why they left iTunes. It's silly.
It is like telling a music recording studio to open a store and start selling their CDs and/or downloads therefore they can eliminate the "middle man" It is an idiotic idea.
There is nothing FREE, with the adds NBC could make more money instead of just selling their shows for 1.99. C'mon, this is America, Do you really think NBC is not looking to create wealth? it's business!!
This was a very anticipated move by NBC, when they broke up with Apple.
I personally think that it is good for the consumers, but execution remains to be seen. Read my post here:
http://abhishek.tiwari.com/2007/09/20/nbc-direct-i-told-you-so/
Right... because paying $4 for lower SD quality on XBox Marketplace, or $6 for marginally better HD is better than paying $2 on iTMS for quality that exceeds my old ReplayTV, MythTV (single Plextor 402tv MPEG4, and dual Hauppage PVR150 MPEG2), TiVo Series2, Dish-DVR or DirecTV Dual DVRs.
No SD (or 480P) DVR comes close to the quality of what you get from iTunes in my experience. XBox Marketplace HD episodes are a push at three times the price. At least if the Heroes S01E01 HD I downloaded there is any indication that is. More resolution, but damn poor bitrates resulting in pretty distracting ghosting and compression artifacts. It's "High Definition" in name only.
So where's all this consumer good again?
People are fanatic about Apple, especially recent (~1year) switchers like myself, because I've never had the same customer service experience anywhere else that I've had with Apple. Apple makes me pay a little more, and promises a great experience. And they deliver. Every time.
Actually, this argument gives me the biggest feeling of de-ja-vu. It feels just like a Domestic Autos vs. Imports argument. "Buy Domestic (NBC!), the quality has increased! Promise! The Imports (Apple) aren't much better these days! Think of what you'll be doing for competition if you buy Domestic! It's your responsibility to suffer through unreliability, cheap materials and lowered expectations because it's better for the market if we don't let the Imports (Apple) win out-right!"
You can rationalize all you want, but I now have NO way to legally obtain NBC's programming via download. ZERO.
What am I suppossed to when put in this situation, NBC? Steal from you or ignore you and focus on your competitors? It's like if NBC suddenly decided their shows would only play on certain brands of TV. It's Idiotic.
And for everybody using Windows marketshare as an excuse realize that TV viewing habits don't apply to the 50% of Windows PCs stuck in businesses and outdated school libraries. This service about new, home, personal computing and Apple has a much more significant chunk of that market than most realize.
From the sound of it, NBC has decided to a copy of the BBC's iPlayer. Like the BBC, to prevent those dirty foreigners from watching it, they use the same copy protection as the BBC, Kontiki, which is only allows XP users.
That is why Mac users can't watch it, as Kontiki is platform centric.
Is that free download stuff only for the US or can us military stationed overseas enjoy it as well?
Somehow I've got a feeling that we'll get shafted since we're not in the USA.
I guarantee that within 12 months you'll have two options ;
1 Free TV with embedded ads. All show's expire and delete themselves from your computer after 7 days or 7 viewings (whichever comes first).
or
2: Subscription service TV without ads. All show's expire and delete themselves from your computer after 7 days/7 views.
The real thing NBC don't want is users owning digital content without any form of exipration. That's a 'one time' payment. The 'lease media' model is the ONLY reason DRM exists and the sole reason Apple are, once again, being left out in the cold is because they won't adopt a mafia style payment racket.
The only reason they accept DVD, CD is they know new formats continually create new business. Unprotected Digital media is virtually a copy for life!
So let me get this straight... NBC leaves Apple so that they can increase their revenue and their solution? Offer programs free on their web-site? Who are the geniuses behind this idea? Do they honestly think they can make more in ad revenue then through direct purchasing? I guess I shouldn't be surprised... there seem to be a lot of dumba$$ execs in network tv these days... its like watching the Titanic sink slowly...
If they're opening up to more people, not just iTunes users, and offering free content (people like free), I wouldn't say it's an overly bad idea. Watch what's been on recently for free and advertisement sponsored, or watch what has gone past and no longer available for a low price. The model seems to be working quite well here in the UK
I actually think its a good idea...esp. for the non tech geekophile...
The ad thing isn't that big of a deal to me. If I'm watching a show live on TV...that's the time for bathroom/snack break. Same here.
Why is it so hard for people to see that NBC leaving iTunes is not simply about dollars and cents in the short term? There is a much bigger picture that NBC is fighting. Despite what many believe, iTunes having so much control in the digital media space is a bad thing. With so much control and dominance it stagnates innovation from competitors in the industry. Imagine what great digital media offerings were out there is iPods and their market share were open to various paid content outlets. Instead we are stuck with what iTunes puts out as the status quo and drink the Apple Kool-Aid believing that it's as good as it gets.
We gadget geeks love to talk about open source and drm free worlds, yet we defend Apple's closed network and accept Jobs strategic PR tokens (Jobs DRM speech) as signs that Apple is not an evil corporate greedy giant.
Now I know that from a corporate perspective NBC does not care about this. They only care about the dollars and cents. It's clear that NBC simply wanted to resist Apple having complete control of the digital media space. So even if challenging Apple would costs NBC a lot financially in the short term, it could pay off dividends in the long term if (now it is a big if) the business environment changes towards a model that more benefits NBC. As we see with the phone company agreements Apple has with the iPhone providers, Apple is able to dictate and take what it wants from these companies, which is simply not in the best interest of their stock price.
P.S. I'm looking forward to the low ranking because anything anti-Apple on this site is automatically marked low.
Why is it you are all against Apple dictating what can & can't be done, yet you are obvioulsy a happy Windows user? Have you not paid any attention to what Microsoft has done in the last 20 years?
They stifled technology by heavy handed tactics that killed competition, innovation. Apple is lucky to still be around after teh 1990's & Microsoft's practices.
A tad bit more serious than where you get your favorite TV show from. I don't believe that there are MS fanboys & Apple fanboys - I believe that there are people who are aware of the history computer industry & technology, and those that just blindly defend to assure themselves that they made the best choice.
An MS fanboy clearly has not a clue on the company's past (and present) practices, otherwise, how could you cheerlead for them?
Hmmmm, when did I claim to be a happy Windows user? I have many gripes about Microsoft. It's this same thing over and over again. Any anti-Apple talk is pro-Microsoft. Ridiculous. My point is solely about Apple's role in digital media being unhealthy the same way that Microsoft has been in operating systems, browsers, etc. My knowledge and opinions are not based on any fanboyism. It's based on my years of consulting experience at these companies including Apple, Microsoft, T-Mobile, Sprint and many other tech and telecommunication companies.
Simple questions:
1. What percentage of all downloaded media is purchased specifically to play on portable media players?
2. What portable media player has the largest market share?
So - for all those that say NBC need not be concerned with such a small market share of Mac users - no. They have instead chosen to cater to the SMALLEST market segment of portable media players instead.
Brilliant.
To further illustrate my point why is it that we challenge NBC's decision by simply stating that the only smart move is to stick with Apple? There are plenty of other formats out there,so why are we not challenging these big media giants to embrace those formats? No one seems to be challenging NBC to embrace a Divx store, which would be available on Macs and Windows PCs. Or even yet, we could challenge Microsoft to make it's DRM available on Macs. The fact is that Apple has us so stuck in believing that it is hands down the best and only option out there that we are resistant to anyone who disagrees with them.
RE: Andrew @ Sep 20th 2007 2:05AM
who said "we are people, we are NBC watchers and most importantly we are consumers and should not be shut out."
Fortunately, there's a mechanism in place to show NBC that you're not pleased with this behavior. It's called "the free market" and while I'd never claim it's perfect, *this* is one of those times that it works.
Boycott them.
Of course, if you're serious, you should cancel your cable too, since they get a cut of that pie.
So - you think people CHOOSE to buy iPods because that's the only way they can get content???
People make those choices on their own - for a variety of reasons. Most non-Mac users I've talked to who own iPods say they bough them because are reliable and easy to use, period.
There are lots of things I don't like about Apple. But there was plenty of opportunity for innovation before iTunes and the iPod - Apple got it right. Now they are a target - but I've yet to see anyone do it better. When someone does - I'll probably be in their camp.
It's pretty presumptuous for NBC to think they are producing content these days that people are willing to pay money for. I don't think I've watched an NBC show since Seinfeld went off the air. At least I can't remember one. The big 3 TV networks are total dinosaurs, can't help but feel sorry for them as they grasp at straws to adapt their business models for the 21st century.
Are you serious? Do you honestly believe that marketing has nothing to do with this? What Apple got right is their marketing approach plain and simple. Their products are good, but not so far above everything else that warrants its market share. A huge chunk of Apple's sales are due to the "me too" effect. Sure there are many people out there who buy Apple products becasue they have done a fair evaluation and feel that it's the best product out there, but please don't ignore the large quantity of buyers who purchase Apple products (specifically iPods) simply because they want the "in" product. The entire market does not function like us Engadget reading folks who are more inclined to make informed rational purchasing decisions. I do this for a living and believe me there are a lot of people who buy simply because you tell them to.
Actually, I am serious. And I do it for a living to. Alternate side of the same coin I guess.
Never said marketing didn't have anything to do with it.
The products are good - and they work as you think they will. "Me too" may get people hooked. But it's the product that keeps them hooked.
Jeff Gaspin of NBC says that they did this move "to eliminate the middleman."
That's interesting. Does Jeff Gaspin fail to realize that the National Broadcasting Company itself is a middleman?
Perhaps he thinks that NBC is different -- that their middlemanhood is acceptable -- because they provide reasonable added value. That's our point: Apple/iTunes provides wonderful added value for television shows. But they can't do that any more for NBC.
NBC: now that you're off iTunes, it's too difficult for me to get your product onto my portable devices. I'll find some other way to get my shows now, and you won't be getting a dime for them.
Oh, well. I guess one network had to try The Stupid Thing. I'm guessing you'll be back to iTunes by the end of the year.
This is such a stupid idea - what research has NBC done to think this is a successful move for the company?? GE / NBC is a smart, very resourceful company, just surprised they would make such a move without credible knowledge that their service will be successful.
Will they make more money from advertisers than sales via iTunes??
Just very disappointing, with such a huge user base, I can't imagine not finding a way to put it in the hands of most iPod owners. I really enjoy watching The Office, Heroes, & several of the Bravo shows (does anyone know if these will be pulled?) - I do prefer to watch them on the TV and will continue to record them via DVR, but when I am on the road or just missed any episode, I will almost always buy the episode to watch on the plane or wherever I happen to be - this move really pisses me off - screw you NBC!! Caspin is an idiot!!
paying for a show that was aired for free has always seemed moronic. like during the old commercials on PBS when they tell you "if you'd like to purchase the program you're viewing [which we'll probably be airing 5 more times this week] send $29.95 for a VHS copy." well, you've got the VHS to play the tape, how about throwing a $2 blank in there and record it yourself? oh, I know, you'd miss the thrill of supporting public broadcasting. except PBS is for losers.
...don't even know what I was commenting on.
What's up with the Windows only availability!? Leaving the mac user high and dry...plus limiting the time. I just introduced a friend of mine to Heros last night. Um, that aired like last spring...so convenient. Bring back iTunes at least so the mac user can have the shows available to them.
After reading all the comments, I had to say my piece:
1. I watch TV on my iPod. Sometimes, there are shows that I like that are on at the same time as another show I like. I get season passes for these shows.
2. I grew up falling asleep to a TV. My husband grew up falling alseep in absolute, dark, silence. So, I now fall asleep to audiobooks or watching TV on my iPod. Problem solved.
3. I AM A MAC USER. I bought an iPod, not ONLY b/c it was made by apple, but b/c it works like it should has easy controls, a nice interface and i'm addicted to Zuma and Texas Holdem.
4. HONESTLY, the screen size of my 30GB iPod Video does NOT bother me in the slightest. When I am laying in bed on my side the screen is like 12 inches from my head - so its like watching on a computer screen.
5. You people are missing the point. REGARDLESS of your operation system, I want to be able to DOWNLOAD not WATCH on my computer. I NEVER watch TV on my computer. It skips and my Powerbook speakers SUCK.
6. If I pay for something, I OWN it. Just as if I bought a season on DVD. NO ONE should have the right to limit my viewing to 7 Days for something I BOUGHT. Now, when they are free, thats fine, but some of you were suggesting that the 7 day trend would continue with subscriptions. That, to me, is STUPID. WHY WOULD YOU PAY THAT MUCH TO RENT???? I say that much b/c.....
7. THE REASON NBC LEFT is b/c THEY WANT TO CHARGE 5 BUCKS per episode and Apple told them to screw themselves. APPLE WAS PROTECTING THE CONSUMER and all you people are doing is slapping Apple in the face while NBC is slapping you!
8. As I stated before, I want tv to watch on my iPod and AppleTV, not to watch in a web browser or app on the computer so even if this Direct thing was Mac comp. I wouldn't use it.
9 I AM ALL FOR AN iTUNES COMPETITOR but love the convenience and ease that iTunes offers. However, a true competitor would offer the SAME content at competitive prices, Offer it to ALL platforms, Allow you to download to ANY player, AND allow you keep your purchases FOREVER what you buy, JUST LIKE WHEN YOU BUY A DVD. NO ONE BUT APPLE DOES THIS. And NBC is NOT going to do this so TECHNICALLY, this isn't an iTunes competitor.
As for market share....Market share only takes into account RETAIL SALES> I bought my Powerbook on Ebay. I think those numbers are wrong. I see more and more macs around lately ESPECIALLY in elementary - University Education settings. For all those fanboys on BOTH sides, Check out the movie "Pirates of Silicon Valley" to REALLY see the history of how Windows ended up in most of Americas companies and homes. That's besides the point, however.
If there service doesn't work on a Mac AND isn't downloadable to a music player and AppleTV, its not worth my time or money> I won't cancel my cable, but I will stop watching Heroes, Monk, Psych, Ghost Hunters, Eureka, The Dead Zone, The 4400, and any other offering of NBC Universal. Granted, I will miss my shows, but its the least I can do. Others can follow suit if they like, but its not like NBC will listen if we did. I'm just going to do it for my satisfaction. This really pisses me off.
This is not the work of NBC, this is the work of their advertisers. Just like the Big Three are afraid of changing to higher MPG standards, the traditional network TV advertisers are afraid of finding new ways to advertise their products. They were against VCRs, they were against DVRs, and now they are against iTunes. This WILL NOT work. The only thing that will arise out of this is heightened use of Amazon Unbox.
this installation process is awfullllllllll. nbc is going nowhere. regular people will not endure this torture. they should really be paying me $220,000 for this advice.