Media companies see the light with Hulu

Hulu, an online video service from two large media companies, News Corp. and General Electric's NBC Universal, started testing its service Monday. Using an advertising based business model, Hulu will have programming from a number of media companies including now shows from Sony Pictures Television and Metro-Goldwyn-Mayer Studios.

The move by these companies to move their programming online indicates the growing popularity of online video, as is evident from the success of Google Inc.’s YouTube. Besides adding a revenue stream for these companies, the programming online may also prove to be a promotional medium, providing users a sample of movies and other video that they could then buy on DVDs or view at the local theatre.

Along with Hulu's own site, the company said its videos would be available through partners such as America Online Inc., MSN and MySpace.com, although links for Hulu on these sites were not apparent at the time of writing, according to a report by Computerworld.

The companies involved are likely to ensure tight control over their copyrights on content, including discouraging download and distribution of their content. Leading Internet and media companies announced earlier this month a set of guidelines for user-generated content (UGC) services, without infringing copyrights.

Among the measures proposed is the implementation of filtering technology with the goal to eliminate infringing content on UGC services, including blocking infringing uploads before they are made available to the public.

Given that the high Internet bandwidth required for the services proposed by Hulu is not available even in some parts of the US, Hulu will likely be more popular for viewing short clips from movies, and other short content, rather than as an alternative to television, and other medium for watching TVs.

Related articles:

Media companies announce plans to protect copyright online

Media companies announce plans to protect copyright online

Leading Internet and media companies announced Thursday a set of guidelines for user-generated content (UGC) services, without infringing copyrights.

Among the measures proposed is the implementation of filtering technology with the goal to eliminate infringing content on UGC services, including blocking infringing uploads before they are made available to the public.

The companies supporting these principles include CBS Corp., Dailymotion, Fox Entertainment Group, Microsoft Corp., MySpace, NBC Universal, Veoh Networks Inc., Viacom Inc. and The Walt Disney Company, according to statements issued by these companies.

The ease of uploading video content on the Internet has led to the creation of millions of original works by new creators – works that range from scripted programs, to virtuoso musical performances and to humorous skits and social parody, the companies said. It also has resulted in the proliferation of uploaded content that infringes copyrighted works, they warned.

For details of the new content identification and filtering program advocated by these media and Internet companies click this link.

Interestingly the companies say that they are willing to accommodate fair use of copyrighted content. For example, when sending notices and making claims of infringement, copyright owners should accommodate fair use, according to the new principles. Fair use has however not been defined in the principles.

Google Inc., which runs the popular YouTube video sharing site is not a participating member of this program. Google and YouTube are facing a number of copyright-infringement legal suits, including a US$1 billion action filed by Viacom Inc. The company however unveiled on Tuesday content filtering technology, called Video Identification. The technology does not yet allow the blocking of copyrighted content from being uploaded, according to reports.

Google may have to go along with the Internet and media companies, as it has always said that it would like to protect copyrights.

Putting controls on copyrighted content, while allowing for a liberal interpretation of fair use would ensure that YouTube and other such sites continue to be tools for innovation and creativity.

Related article:

The Internet helps RIAA squeeze profits