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Google hopes to compete with iTunes, offer pay TV on YouTube

post #1 of 44
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Google is reportedly looking to get into the pay-per-episode TV business with YouTube by offering streaming content for purchase via a service that would compete with iTunes downloads.

According to Peter Kafka of MediaMemo, multiple sources have indicated that YouTube hopes to offer streaming TV episodes for a fee. The plan would be similar to what Apple already offers with iTunes: a $1.99 cost per episode. Both sides are said to currently be in early negotiations, but are "optimistic" that a deal can be reached.

But a key difference for consumers would be the fact that the YouTube stream would cost the same price as iTunes, even though it would seem to offer less functionality. iTunes TV and movie downloads are saved locally on the user's system, where they can be shared with a host of Apple devices, including iPods, iPhones, the Apple TV, and other machines.

But YouTube and TV executives reportedly feel that this is simply a "perception problem," and have cited studies that most people who download TV episodes only watch them once.

"Its also possible that YouTube may skirt the issue by launching a TV rental business without the big hits that Apple and Amazon offer," Kafka said. "One possibility: It could start by moving immediately to long and mid-'tail' shows and videos that arent available other places, and dont have to match existing prices."

Google acquired YouTube, the Internet's largest video destination, in 2006 for $1.65 billion. The Web site already offers some ad-supported TV shows for free, and is looking to get into the movie rental business as well.

YouTube also plays a strong role in the iPhone, with a native application included on the device.

As YouTube looks to land a deal for TV episode purchases in 2010, Apple has reportedly been negotiating with networks to provide a $30-per-month subscription plan to deliver TV episodes via iTunes. Reports have suggested that Apple also hopes to launch its new service in early 2010.

Apple's subscription proposal is said to be based on the existing iTunes desktop software, and is not based on any forthcoming hardware like a new Apple TV or the company's long-rumored touchscreen tablet. Industry executives are said to be "intrigued" by the prospect of an iTunes subscription plan, though cable networks are reluctant to sacrifice existing relationships with providers like Comcast.

In October, Apple updated its Apple TV software to version 3.0. The redesigned interface includes a new main menu that gives users instant access to content, including the integrated YouTube.
post #2 of 44
Start your copiers Mountain View
post #3 of 44
It's looking increasingly to me like Google and Apple are going to totally own everything in terms of software for the next decade, with Apple taking the high end and Google filling in what would otherwise be Microsoft's place with the free/lesser junkier stuff for the masses.

How long till Microsoft just gives up on the whole idea of being anything but a (crappy) OS maker? I predict major job cuts, dissolution/reorganisation and the cutting loose of most of their divisions at Microsoft by November 2012 at the latest.
post #4 of 44
This model would cost me more than cable. Never going to work
post #5 of 44
It may be true that most people only watch iTunes TV shows once (this is true for me most of the time, but not all the time) but the point is that I watch the shows on my Mac at home, my Mac while travelling or occasionally my iPhone on the train/subway or airport. You just can't do this with YouTube.

Not only that, but YouTube has been suffering serious lag recently (so has Netflix for that matter). Are we going to get the constant picture quality changes has bandwidth changes throughout the early evening? I hate that.

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post #6 of 44
Google tried this before with Google Video and shut that down after a year or so...
post #7 of 44
So when does Google pull YouTube off the AppleTV and the iPhone - 2010 or 2011?
post #8 of 44
Quote:
Originally Posted by teckstud View Post

So when does Google pull YouTube off the AppleTV and the iPhone - 2010 or 2011?

They might just never support the PPV model on those devices. Teh non-flash YouTube seems to have about one eighth of the bandwidth anyway, mine is always stalling even on my home WiFi.

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post #9 of 44
Quote:
Originally Posted by kent909 View Post

This model would cost me more than cable. Never going to work

But what about people who dont want much TV. This could save them money each month.
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post #10 of 44
What other idea is Google going to copy from Apple? We can all thank Google CEO for this. This thief was allowed to sit on Apple board for years, and now recreating Apple ideas one by one.

What a shame!
post #11 of 44
Quote:
Originally Posted by eAi View Post

Google tried this before with Google Video and shut that down after a year or so...

That was a few years ago and Google bought the successful YouTube when they realized that Google Video wasnt working.

2010 should be the year of streaming. I expect to see a lot of media extenders at CES this year, well see YouTube with 1080p, better Netflix streaming quality and presumably a new AppleTV that can push 1080p. Apple cant lose the living room or it risks losing in other areas. Apple really has to follow MS Zune and Xbox strategy here. Meaning, even if they arent making money in the short term from it they still have to do it or risk losing more money in the long term in other areas.
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post #12 of 44
I know this off-topic, but MS never lets us down with there issues

Absolutely priceless http://news.bbc.co.uk/2/hi/technology/8388253.stm

Not blue screen death now going for black theme :lol
post #13 of 44
Quote:
Originally Posted by solipsism View Post

But what about people who dont want much TV. This could save them money each month.

Not only that. I have two young kids and much as I don't mind them watching all the usual programming I cannot abide the incessant repeats (my comatose kids, mouth half open, starring blankly at some lame show they have already watched several times). A per episode or per season rental could potentially allow them to keep watching Hanna Montana et al whilst going back to the excitement of the weekly episode, yet with the flexibility of the download viewing model.

I'd love to be able to chose the specific programs / series I could get and ditch the junk. Sports need to be included and as someone already mentioned - the prices need to drop. I suspect that the way we watch TV in 10 years will be VERY different from the way we do it now. I certainly hope so.
post #14 of 44
Quote:
Originally Posted by souliisoul View Post

I know this off-topic, but MS never lets us down with there issues

Absolutely priceless http://news.bbc.co.uk/2/hi/technology/8388253.stm

Not blue screen death now going for black theme :lol

With so much HW, legacy SW support and a huge installed base its not unexpected. This one is pretty minor as seems to be only some ACLs that were incorrectly altered.
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post #15 of 44
to be honest, apple tv subscription and spotify will do me fine
post #16 of 44
Quote:
Originally Posted by paxman View Post

Not only that. I have two young kids and much as I don't mind them watching all the usual programming I cannot abide the incessant repeats (my comatose kids, mouth half open, starring blankly at some lame show they have already watched several times). A per episode or per season rental could potentially allow them to keep watching Hanna Montana et al whilst going back to the excitement of the weekly episode, yet with the flexibility of the download viewing model.

Yeah, thats it, make sure Google is the one thats responsible for your kids only watching a show one time
post #17 of 44
Quote:
Originally Posted by solipsism View Post

But what about people who dont want much TV. This could save them money each month.

They'd have to watch less than 20 shows a month!

My cable bill is 40 and change (taxes, fees and surcharges) but for the sake of easy math 40 bucks.

At 2.00 a show/episode (1.99) that is 20 shows (20 x 2.00 = 40.00)

20 shows in 30 days... I dunno...

And will Googles approach be able to allow one to watch on their tv?

I'd much rather pay a subscription for a range or quantity of shows like 20 shows or less is $20.00 or 20 - 30 shows is $25.00 or 30 - 40 shows is $30.00 AND THEN be allowed to select my favorite shows and make my own tv line-up and use Apple TV to beam it so I can view on my tv set.

I have the cheapest cable option offered because out of the channels I have, there are those channels I never use and only some channels offer a show or two I find interesting that I would like to pluck from them and interesting shows of other channels, pluck them and have my Mon Fri night time line-up 7:00 - 10:00 pm and watch some sports and movies on the weekend!

That would be my dream of a method of finally getting what I pay for on the boob tube instead of having to put up with everybody's mindless junk, I just have to put up with my mindless junk!

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post #18 of 44
Quote:
Originally Posted by Rot'nApple View Post

I'd much rather pay a subscription for a range or quantity of shows...

Me too, but I know people that dont watch much TV at all.

Im pretty sure Googles approach will be to utilize the YouTube players that are cropping up in media extenders as a (primary) method of transport.
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post #19 of 44
Quote:
Originally Posted by Rot'nApple View Post

They'd have to watch less than 20 shows a month!

My cable bill is 40 and change (taxes, fees and surcharges) but for the sake of easy math 40 bucks.

At 2.00 a show/episode (1.99) that is 20 shows (20 x 2.00 = 40.00)

20 shows in 30 days... I dunno...

20 shows is still 5 a week, how much TV does a person need? Besides, with Hulu and other websites (ABC.com offers virtual HD quality) you can watch way more than this for free.

I'm saving about $80 a month from dumping Cable. I paid all that just to get HBO/Showtime and Comedy Central - but you have to pay for all the shite to get the ad-ons...

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post #20 of 44
Quote:
Originally Posted by steviet02 View Post

Yeah, thats it, make sure Google is the one thats responsible for your kids only watching a show one time

Actually, I'd like to make Apple responsible. It would lighten the burden of my daily life considerably. But I'm afraid I am the one. I would just like a little help where possible.
post #21 of 44
Quote:
Originally Posted by Rot'nApple View Post

I'd much rather pay a subscription for a range or quantity of shows like 20 shows or less is $20.00 or 20 - 30 shows is $25.00 or 30 - 40 shows is $30.00 AND THEN be allowed to select my favorite shows and make my own tv line-up and use Apple TV to beam it so I can view on my tv set.

Exactly! And increase the rental library of movies ten fold. Apple would sell a LOT more hardware and I am sure they'd be the first to agree that this is the way forward. Unfortunately there are a lot of players in this jigsaw and the cable companies will find tooth and nail to keep the status quo.
post #22 of 44
Quote:
Originally Posted by Rot'nApple View Post

And will Googles approach be able to allow one to watch on their tv?

Besides my previous posting about media extenders, its possible that future TVs will be able to play YouTube directly, perhaps even with Chrome OS installed for internet browsing. On top of that, with YouTubes H.264 usage and HTTP Streaming its not unfathomable to think that these shows could be viewed on handheld devices, too.
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post #23 of 44
"launching a TV rental business without the big hits that Apple and Amazon offer," Kafka said. "One possibility: It could start by moving immediately to long and mid-'tail' shows"

What TV shows does iTunes not have? It has everything. Now, it's movie selection is very thin. I would also think that cable providers, such as Comcast, would make a serious effort to cap broadband consumption if people started watching more TV over internet and less on cable. Or, they would certainly raise the price for broadband internet service.
post #24 of 44
Is there a plex plug-in yet? :-)
post #25 of 44
This is stupid. I was expecting to read that they'd charge around 50¢, which would be reasonable for a single streaming view of a TV episode. At $2, I can't imagine what advantage they think they'd be offering over iTunes.
post #26 of 44
Quote:
Originally Posted by Gazoobee View Post

It's looking increasingly to me like Google and Apple are going to totally own everything in terms of software for the next decade, with Apple taking the high end and Google filling in what would otherwise be Microsoft's place with the free/lesser junkier stuff for the masses.

How long till Microsoft just gives up on the whole idea of being anything but a (crappy) OS maker? I predict major job cuts, dissolution/reorganisation and the cutting loose of most of their divisions at Microsoft by November 2012 at the latest.

That's a pretty good take on the Big Picture.

Looks like Apple was prescient in declaring that they and Google were increasingly becoming competitors. I think it's just a matter of time before Apple launches its own search service for the iPhone, and eventually for ALL its products including the Mac. If that doesn't make Apple and Google head-on competitors, I don't know what will.
post #27 of 44
Quote:
Originally Posted by Zoolook View Post

20 shows is still 5 a week, how much TV does a person need? Besides, with Hulu and other websites (ABC.com offers virtual HD quality) you can watch way more than this for free.

I'm saving about $80 a month from dumping Cable. I paid all that just to get HBO/Showtime and Comedy Central - but you have to pay for all the shite to get the ad-ons...

Spoken like a single guy with one TV set.

Start a family, own multiple TV sets watching kids programs, news, sports, etc etc (and the sheer convenience of being able to turn on and off randomly from one to the other, or being able to switch channels) and you'll see.

Google's business model on this is dead on arrival.
post #28 of 44
Could we get cut out the immature copy cat comments? Successful businesses always try to expand into new areas. It's as simple as that. Grow up and get over it.

I don't recall anyone here calling out Apple when they introduced the Apple TV which was essentially a copy of the existing Windows Media Extender. I don't recall anyone complaining about Apple copying Palm or Blackberry when they introduced the iPhone.
post #29 of 44
Quote:
Originally Posted by Turley Muller View Post

What TV shows does iTunes not have? It has everything. Now, it's movie selection is very thin. I would also think that cable providers, such as Comcast, would make a serious effort to cap broadband consumption if people started watching more TV over internet and less on cable. Or, they would certainly raise the price for broadband internet service.

That's why Comcast is looking at purchasing a majority share of NBC from GE, and along with it HULU which will I would wager will either not be free or available to everyone (without a cable subscription) for very long. To many unknowns still to know what they are going to do but they are thinking about it.
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post #30 of 44
Quote:
Originally Posted by Mister Snitch View Post

Looks like Apple was prescient in declaring that they and Google were increasingly becoming competitors.

Or Apple was not so dumb, after all, in having Schmidt sit on their Board......
post #31 of 44
I stopped watching tv 2 years ago. Now occasionally when I see a tv it just doesn't capture my attention anymore. It's the content and the commercials + it just take too much time! I'm looking forward to when the new tv model is really in effect, globally so that I can watch one or two important tv productions a month or so. I can't even download a movie on iTunes yet where I'm at. Still a looong way to go for this to happen globally.
post #32 of 44
Quote:
Originally Posted by solipsism View Post

But what about people who dont want much TV. This could save them money each month.

I really only watch one show, "Mad Men". I can buy a whole season on iTunes for appr. $36, which is half of my monthly cable bill. If I dump cable, pay for my one show, and an occasional movie, I'm coming out WAY ahead.

Except that I haven't figured out what to do about sports. I guess I can BootCamp to XP and watch it from there.

I get local news from the internet anyway. For whatever reason, the content of TV broadcasts, including regular programming and commercials is far too noisy. I'd prefer it this way. I may cave on the cable plan and just get local programming through cable. Not sure about that though.
post #33 of 44
Quote:
Originally Posted by Gazoobee View Post

It's looking increasingly to me like Google and Apple are going to totally own everything in terms of software for the next decade, with Apple taking the high end and Google filling in what would otherwise be Microsoft's place with the free/lesser junkier stuff for the masses.

How long till Microsoft just gives up on the whole idea of being anything but a (crappy) OS maker? I predict major job cuts, dissolution/reorganisation and the cutting loose of most of their divisions at Microsoft by November 2012 at the latest.


microsoft is interested in the corporate IT market. Exchange Server rules corporate email. SQL Server is growing market share. WIndows Server gets good reviews in every new release.

Microsoft licenses ActiveSync to Apple and Google. Soon most of the world's smartphones will pay the microsoft tax.

Silverlight is growing so expect to pay the MS tax there as well
post #34 of 44
If Google hasn't noticed Youtube is a personal video sharing site. Let's keep it that way Google. If it wants to offer something why not brand it as Google Video or Google TV. I don't think youtube will ever be a good vehicle to roll out TV episodes or Movies, just cause that would ruin the YOU in youtube. But maybe it's just me.
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post #35 of 44
Quote:
Originally Posted by Mister Snitch View Post

That's a pretty good take on the Big Picture.

Looks like Apple was prescient in declaring that they and Google were increasingly becoming competitors. I think it's just a matter of time before Apple launches its own search service for the iPhone, and eventually for ALL its products including the Mac. If that doesn't make Apple and Google head-on competitors, I don't know what will.

Only if you're not looking at the whole "Big Picture." Apple and Google barely even compete with Microsoft in the enterprise arena. Where are the competitors to Microsoft's Exchange Server, SQL Server and SharePoint services? That's just naming a few off the top of my head. Microsoft really doesn't have any competitors when it comes to office suites either and certainly not from Google or Apple.

Really the only area Microsoft and Apple compete in is the OS space. Microsoft and Google are fighting over the search/ad space.
post #36 of 44
Quote:
Originally Posted by souliisoul View Post

I know this off-topic, but MS never lets us down with there issues

Absolutely priceless http://news.bbc.co.uk/2/hi/technology/8388253.stm

Not blue screen death now going for black theme :lol

Windows 7 is out and it is not going to have any of the problems my last operating system has....

and they say "I am a Mac" ads are not true
post #37 of 44
Quote:
Originally Posted by NasserAE View Post

Windows 7 is out and it is not going to have any of the problems my last operating system has....

and they say "I am a Mac" ads are not true

Its true. They keep changing the colour of the screen of death to make it new again.
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post #38 of 44
Quote:
Originally Posted by solipsism View Post

Its true. They keep changing the colour of the screen of death to make it new again.

I am surprised they kept it blue for that long though
post #39 of 44
TV generally insults your intelligence.
Do your mind a favor:
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post #40 of 44
Quote:
Originally Posted by NasserAE View Post

I am surprised they kept it blue for that long though

One of the Vista betas I had a red screen of death.

PS: I wonder how Apple makes their kernel panic screen. It seems to take a snapshot of the display and rolls a transparent image over it. It seems pretty intense for a kernel panic. I recall the first time I saw that in 10.0 and thinking that even kernel panics are aesthetically pleasing in the new Mac OS.
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