P2P TV Model Said Attractive to Broadcasters; Will Consumers Buy It?
P2P technology, the music industry’s bane, is looking increasingly promising to Europe’s TV industry, according to industry observers. Following a Feb. workshop, the European Bcstg. Union (EBU) said the technology “certainly seems a very attractive solution for broadcasters.” Pilot projects in the U.K., the Netherlands and elsewhere are beginning to tackle P2P’s intellectual property issues. However much the cheaper distribution system may excite broadcasters, the question remains whether P2P TV is a viable business model, officials said.
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The BBC recently tried Integrated Media Player (iMP), an Internet TV and radio program download offering that rides on P2P technology. Content for iMP comes from the Creative Archive License launched a year ago by the BBC, Channel 4, Open University and the British Film Institute. The license was inspired by the Creative Commons system pioneered in the U.S., BBC said. Creative Archive lets users download and use footage and radio programs non-commercially. Earlier this month, the iMP pilot was dubbed a success, though 94% of the 5,000 viewers said more content would make the service better.
A new P2P system, Tribler, debuted in March in the Netherlands. Makers of the open-source software, developed at the U. of Delft, said Creative Commons licenses might offer an avenue around sticky legal problems.
Creative Commons Netherlands (CCN) is starting a pilot project with Dutch public broadcasters to release some TV material under a license within the Tribler system, said CCN’s Syb Groeneveld. Content likely will include news items and documentaries provided under a non-commercial license. “The pilot will analyze legal and technical threats and opportunities within P2P environments from the perspective of the creator and the copyright holder,” Groeneveld told us.
P2P is a potentially disruptive technology that can destabilize the traditional broadcast and communications industries, Groeneveld said: “The distribution system technology of P2P is offering cost reduction models for broadcasters of sometimes more than 90%.” That’s one reason Warner Bros. and Arvato Mobile are beginning to sell movies and TV shows in Europe over the Internet via P2P, “marking a turnaround from the entertainment industry’s past efforts to crack down on P2P technology,” he said. “Thanks to P2P, the Internet, wired and wireless, may become not just a complementary delivery channel, as it is today, but a primary channel for niche channels and on-demand services,” Groeneveld said.
In a report on its “P2P to broadcasting” workshop, the EBU said P2P technology means broadcasters no longer face the costs of big servers, storage and connectivity to reach thousands of simultaneous Internet users, since distribution costs would be defrayed by users and ISPs. “And you could argue they are already used to that, looking at the enormous amount of P2P traffic being used day-to-day already,” said Groeneveld.
The EBU pointed to development by various companies of software clients letting broadcasters use P2P technology. Some are based on Bittorrent Open Source software, others using more proprietary technology. “The main thing to do for the broadcasting community is to gain more detailed knowledge about the characteristics, costs and best way to use P2P technology,” the organization said. Several EBU members, including the BBC, have paved the way, and the EBU is weighing using P2P TV for big European events and setting up a project group to “help sort out some of the open questions.” No one from the EBU was available at deadline to discuss what those questions are.
There’s a lot of talk about P2P video in industry but it’s impact on users is unclear, said Strategy Analytics analyst David Mercer. From a consumer point of view, P2P TV is no different from other online TV offerings, he said: As long as it works and is of good quality, users don’t care what kind of distribution system they watch programs on.
Uptake of P2P TV has been limited due to poor service quality, Mercer said. It seems to be working at the moment, though bandwidth is always an issue. It’s now possible to download a huge DRM-protected file from BSkyB, which rolled its service out in Jan., Mercer said. The quality of the experience is “pretty good” despite a 2-hour download time, he said.
PBS, which has been following the BBC trial, looks forward to reviewing the results and the BBC’s plans, Cindy Johnson, PBS senior vp-interactive learning, told us. Some PBS stations and producers have been experimenting with the P2P distribution technology the BBC used, she said. That technology’s founder, Kontiki, created the Open Market Media Network, and station users include kqed.org and wgbh.org.
Johnson was asked if PBS thinks P2P networks can figure in distribution. PBS is very interested in such networks, she said, terming on-demand transmission cost a “significant factor as we develop a robust, valued Internet video strategy.” P2P networks can be part of the solution, said Johnson. But “one of our key questions isn’t as much about the technology as the financial model and sustainability of P2P network providers,” she said. P2P TV also raises issues regarding “the rights for digital, downloadable content, including how we acquire, utilize and manage across platforms,” Johnson said.