SkyTV, TV One and TV3 Ban Slingshot Adverts

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#1102687 5-Aug-2014 15:53

I have to thank Sky and TVNZ for doing this. I have become more educated in the last 24 hours about how easy it is to use Hulu and Netflix than in the past few years. A setup today has proved how easy the process is and has left me with an alternative to sky in the front of my mind. Well done Sky!

old3eyes

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#1102692 5-Aug-2014 16:03

I just saw the ad on the Herald site. It mentions "Global Mode" for about 1 second. Hardly trying to educate the great unwashed out there.

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Old3eyes

NonprayingMantis

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#1102693 5-Aug-2014 16:04

jarledb:
NonprayingMantis:
Most will have workarounds, but the harder the workaround, the less bothered people will be to do it.

Ah, but we were talking NZ, not everyone in the whole world. (At least how I understood it).

These measures would make it harder for anyone outside of the US to sign up for the service, not just Kiwis.

That said, even with those kind of measures there would be work arounds to get access, and I could even see a possible market for selling accounts to people outside of the US if this happened (in much the same way the GEO-blocking has created a market for unblockers).

Yes, that would be the point (although obviously where Netflix has a service in another country, like Denmark, they would need equivalent measures e.g. Danish credit card required etc)

Kiwis breaking geoblocking is the tip of the iceberg. If australian ISPs follow suit, and other countries ISPs also do it, studios will be out billions of dollars in revenues since no provider in a single country is going to pay for 'exclusive' rights to anything every again.

ajobbins

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#1102704 5-Aug-2014 16:29

NonprayingMantis: Kiwis breaking geoblocking is the tip of the iceberg. If australian ISPs follow suit, and other countries ISPs also do it, studios will be out billions of dollars in revenues since no provider in a single country is going to pay for 'exclusive' rights to anything every again.

This is inevitable. Rights holders know this and make the best of the situation at present by not shutting down this type of Netflix use while they can still charge premiums for exclusivity.

The alternatives right now are:

A) Make an effort to block them. The effect of this is that it will push people to/back to pirating not back to Sky.
B) Concede that an exclusive market doesn't exist anymore. The effect of this is that they can't charge premiums for exclusive access any more.

Studio's aren't dumb. The present situation exists because, given all the circumstances it is the best thing for them right now.

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robjg63

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#1102753 5-Aug-2014 17:53

The argument that TVNZ, TV3 and Sky will make is that they have to pay a lot of money to have screening rights for material in this part of the world because that is what the owners make them pay.
If a place like Netflix can negotiate much better deals (because of size) then how can the local businesses compete?

I suppose the material owners would sooner have the local broadcaster pay a lot for the rights because they make a better income.
However, Netflix doesnt want their product blocked though as they are making money as well.

If the copyright owners start taking a bath on income, Netflix will get squeezed to not allow 'foreign' access.
The movie companies have started spreading their content around a lot more recently - they dont want Netfix dictating to them....

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NonprayingMantis

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#1102795 5-Aug-2014 18:39

robjg63: The argument that TVNZ, TV3 and Sky will make is that they have to pay a lot of money to have screening rights for material in this part of the world because that is what the owners make them pay.
If a place like Netflix can negotiate much better deals (because of size) then how can the local businesses compete?

I suppose the material owners would sooner have the local broadcaster pay a lot for the rights because they make a better income.
However, Netflix doesnt want their product blocked though as they are making money as well.

If the copyright owners start taking a bath on income, Netflix will get squeezed to not allow 'foreign' access.
The movie companies have started spreading their content around a lot more recently - they dont want Netfix dictating to them....

It's not that netflix have better deals. They don't have *any* deals to sell content in Nz. They are in breach of their agreements with the studios by selling here knowingly.

Bit yes, you are right. The rights holders will be clamping down very soon I think, ruining it for the rest of us who we're getting by just fine under the radar.

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loceff13

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#1102797 5-Aug-2014 18:43

from FB

So that’s all of them! TV3 has now joined SKY TV and TVNZ in banning our ads.
We have been told the broadcasters have been collectively talking to content providers about how to shut Global Mode down.
It would be great if you could go on their Facebook pages and let them know what you think.
We really appreciate all the support and will continue to fight the good fight as long as you want us too!

going to plan for slingshot, more awareness

l43a2

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#1102798 5-Aug-2014 18:44

its on now innit these broadcasters have had it so sweet for so long :P

ajobbins

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#1102801 5-Aug-2014 18:47

NonprayingMantis: Bit yes, you are right. The rights holders will be clamping down very soon I think, ruining it for the rest of us who we're getting by just fine under the radar.

It would be naive to think the rights holders weren't 100% aware that this is happening and are clearly more than happy for it to....right now.

The only way they will stop this is if they can no longer extract exclusivity premiums from regional distributors. At the same time, they know that when that day comes, they will need to allow competition within geographic markets or they simply push many of their customers to piracy instead. It's a fine balance.

I will be very surprised if you see rights holders taking steps to force the likes of Netflix to put a stop to these practises. It's simply not in their interests to do.

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andynz

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#1102806 5-Aug-2014 19:04

Generally speaking broadcasters pay rights based on the population base. So TV series are relatively cheap to buy broadcast rights in NZ. Heaps cheaper than making local programs.

andynz

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#1102807 5-Aug-2014 19:04

Generally speaking broadcasters pay rights based on the population base. So TV series are relatively cheap to buy broadcast rights in NZ. Heaps cheaper than making local programs.

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freitasm

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#1102808 5-Aug-2014 19:04

From their press release now:

TV3 has joined SKY TV and TVNZ in banning Slingshot’s latest TV ads.

The TV ads briefly feature the ISP’s Global Mode service, which allows Kiwis to access Netflix, Hulu, and other streaming video services.

Slingshot GM Taryn Hamilton says he understands the broadcasters have been collectively talking to the content providers about how to shut Global Mode down.

“This collusion is just the latest example of big business trying to quash competition.

“It’s completely unjustified and we don’t think New Zealanders should stand for it. All three of our big broadcasters have now clearly demonstrated that they are not willing to listen to what their customers want and are instead focusing their efforts on trying to shut Global Mode down.

“We knew this was a hot topic and Kiwis were desperate for change, but this reaction from our broadcasters is quite astonishing and unprecedented.”

Hamilton says Mediaworks conceded to him that it is under pressure from US studios to act.

Rick Shera, partner at Lowndes Jordan, who is acting for Slingshot, says:

“Unblocking geographically restricted content is not new. Neither are parallel imports. New Zealanders have been legally doing this with zone controlled DVDs and imported goods for years because our laws were changed to allow it.

“What has surprised the incumbent broadcasters is that instead of making people import DVDs in order to view otherwise expensive or unavailable content, Slingshot has innovated to let its customers import that content online. That does not change the fact that it is perfectly legal.

“Since GlobalMode is legal it follows that any ads for it are not misleading and don’t contravene the ASA’s codes. Anyway, I’d be surprised if the ASA would entertain a complaint which is not about the ads themselves, but really about the broadcasters wanting to block legitimately imported content coming into New Zealand.”

I see they have Rick Shera on retainer - good move. They're milking all they can now.

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ajobbins

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#1102811 5-Aug-2014 19:13

freitasm:

Hamilton says Mediaworks conceded to him that it is under pressure from US studios to act.

If true, I see that as a deviously smart move by the studios to maintain the perception that exclusive distribution still exists.

Ultimately the local partners (TVNZ, MediaWorks, Sky etc) have no real power to put a stop to the practice of "parallel importing" content. The studios however, the ones putting on the "pressure" could largely put a stop to this, probably with one phone call if they really wanted to. They don't. They want to maintain the perception of exclusivity and the price premium it attracts.

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BigRat

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#1102826 5-Aug-2014 19:47

andynz: I have to thank Sky and TVNZ for doing this. I have become more educated in the last 24 hours about how easy it is to use Hulu and Netflix than in the past few years. A setup today has proved how easy the process is and has left me with an alternative to sky in the front of my mind. Well done Sky!

You can thank the Streisand Effect.

macuser

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#1102848 5-Aug-2014 20:20

I know it's a bit long in the tooth, but Mods can we please get a title change to include all three broadcasters.

Also 5 points to whoever called this disaster unravelling in the 'Global Mode available to all' thread.

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