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A defense of charging more for Web TV (Q&A)

All the signs coming out of Web TV over the past year or more tell us that the TV networks are done with their experiment with ad-supported online distribution and super low-cost content. The returns that these companies were collecting from Hulu just weren't attractive enough for them to brush off cable companies and other distribution partners.

Fox announced yesterday that it will no longer offer TV shows the day after they appear on broadcast TV to the free version of Hulu. Users of that service must wait eight days to access that content. To acquire next-day viewing, you must subscribe to Hulu's paid-subscription service or those cable and satellite companies that contract with Fox. So far Dish Network is the only company to have signed on.

The move didn't surprise Dan Rayburn , who has been involved with streaming media in some form or another for 15 years and now, as principal analyst at research firm Frost & Sullivan, covers the online video sector. He says he understands that people wish hit movies and TV shows and films were freely available online. But the self-described pragmatist says that just isn't going to happen.

Rayburn spoke with CNET tonight about the quickly shifting landscape in video distribution:

Question: Have we've seen the end of free Web TV ? Rayburn: Was it ever really here? Somehow the idea got out that consumers will have access to any type of content they want on any device. That's not going to be the reality. The reality is that we're always going to have some kind of pay wall and we're going to have authentication methods that keep us from being able to get a lot of different types of content unless you're a certain subscriber.

Now, you can say that's the case with Netflix. You have to pay to get access to their content. With Hulu Plus, you got to pay to get access, with Major League Baseball, the NFL, NBA. This stuff costs money. So, I'm not at all surprised by the Fox move and I expect we'll see a lot more of that down the road. Some will argue that that's not the right approach. You can debate that but the bottom line is they are obviously concerned about their core business and they want to do everything possible to protect that.

How does this compare to what's going on with Hollywood and films?
Rayburn: It's the same way that the movie studios are worried about DVD sales so they force Netflix to agree to a 28-day window where they can't rent new DVDs. It's no different from what the studios have done. I expect we'll see more of that.

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