The Middle East is in desperate need of high-quality, legal, online content
Today, I was exchanging tweets with the Dubai-based web site, Kipp Report. It informed me that the Orbit Showtime Network– one of if not the biggest TV network in the region – is suing a pirate $962,400 for illegally downloading its HD content, at a rate of $1,200 per piracy act.
Clearly, the pirate is a serial downloader, given the enormous amount of money the bill has come to. But the fact that OSN is doing this means that even one-off downloaders are at risk of having to fork out obscene amounts of cash for doing something that everybody does.
Yes, everyone does it. Anyone who says they haven’t downloaded illegal content is lying. Indeed, the CIA famously had to drop a pre-requisite for job candidates that said, to be successful, the candidate must never have downloaded illegal content. The agency found that it was having to reject almost everyone, so the policy was reversed. If ultra-patriotic, ultra-professional wunderkinds are still downloading stuff, then obviously everyone else is doing it, too. And the practice is rife across the Middle East.
This is because Middle Eastern networks are still living in the dark ages when it comes to providing legal online content. In other parts of the world, TV networks have wised up to the fact that they can’t do much about the torrents of illegal content flooding the Internet (excuse the pun). What they can do, though, is entice would-be illegal downloaders to get their content from their own web sites by making it accessible, with the only drawback being a couple of 30-second adverts to sit through. All of the free-to-air channels in the UK have TV streaming services on their web sites, and the same can be said for the big networks in the US. It’s just common sense.
Most downloaders are happy to sit through the short adverts if it means they are getting their content legally. As great as it is getting TV shows, movies and music for free, most people still feel pretty guilty about it. If they’re provided with a reasonable alternative that offers a hassle-free viewing experience, then they’ll go for it.
And this is what bothers me about OSN suing this guy for so much money. For one thing, I don’t see how it can possibly have lost $1,200 per downloaded show. It’s not like advertisers won’t pay up if they find pirated versions of the show online. Surely the most you could charge would be the price of a DVD box set? But along with this, suing people for the practice is the wrong way to go about things – the company should instead be looking at ways of enticing people back to the right side of the law.
The fact that OSN offers on-demand TV is a good start. But it’s still only reserved for paid subscribers, and it can’t be viewed online. How about, for everyone else, creating a free subscription service, offering the streaming of basic content such as news and a couple of TV shows? For people who want more content, offer online subscription packages. In both cases, it would mean that people are still getting their content from OSN, not a torrent site. And this would mean that the company would be able to charge more for online ads, because the audience would inevitably grow.
Indeed, if OSN was the first company in the region to offer such a service, it’d make a killing. The firm would have a proper USP, people would flock to the web site, and the brand would be seen as very forward-thinking.
It’s understandable that OSN wants compensation for what it views as stolen content. It’s something the music industry has been wrestling with for years now. But with so little legal content available online, is it at all surprising that people are turning to pirate sites?
I’m told that it’s difficult for companies to provide high-quality online content for legal reasons. This is a shame, because if something’s not done soon, illegally downloading shows will become the norm, even if someone is sued every once in a while. And if that happens, advertisers will pay less, meaning the quality of the shows will tumble, and jobs will be lost. Provide a good alternative, and I guarantee consumers will go for it.
This is actually a good blog post except that the whole on-demand market is fairly new in the region and OSN might have learned greatly from such an incident. The idea here is that these companies face huge hurdles INCLUDING market demand for online content.
Let’s face it: The Middle East isn’t as on-the-go as the US or UK; therefore, any online legal content wouldn’t be really downloaded dearly by the user.
Bottom line is: They probably heard of the idea but wouldn’t invest much in it for a while. The market doesn’t seem to be demanding such a feature. It is a solution, yes, just not applicable now.
Khaled
Great post. OSN seen as a forward thinking brand? That’s an interesting concept.
I think you’ll find that the reason they are suing for such a large amount is to act as a deterrent to others. Of course, we all realise that this won’t work and people will continue to illegally download.
Personally I’m amazed that the guy found anything on OSN worth downloading!
Tom. ..a couple of points I’d like to make. If you wanted a new car I’m pretty sure you wouldn’t just steal one off the street.. and I’m certain that you wouldn’t expect the car dealer to give you one for free. Indeed, you wouldn’t even expect them to give you a free one of their basic range, and only expect them to receive payment from the few people who wanted a more advanced model.. I also suspect you wouldn’t suggest the way to overcome car crime is to make sure the dealers give cars away free. But that’s what you’re suggesting would be OK for TV. Each of the Movies and Series you see on the OSN channels costs OSN more than the price of a good new car…. and that’s each movie and programme, not each channel. None of the content you see on the OSN platform is provided to us free. We invest hundreds of millions of dollars to deliver the content you see across our 90 channels. We should be entitled to a return on that investment, just as you and your readers are entitled to be paid for the work you do and the car dealer is entitled to be paid for his cars. Intellectual Property Crime is not a victimless crime. It inhibits the capacity for companies like ours to invest to create a viable and robust entertainemnt industry, something this region deserves. One can’t lament the lack of quality on TV yet encourage the actions that serve to stop the industry from being able to afford to invest in improving things. And to your point of a decent Digital Platform. I agree.. and that’s why we’ve been developing one for several months. It will launch early in 2012 and I am sure you will use it to further (legally) enjoy the OSN experience…. David Butorac.. CEO OSN.
Hi David,
Thanks very much for taking the time to read this and getting in touch. I think we’re both agreed on the fact the intellectual property crime is not a victimless one – that’s why I said that things need to change. Everyone wants to see high-quality shows and for TV networks to find innovative ways of delivering the content – obviously illegal downloading inhibits that, so I completely understand your position. And I suppose that if the show costs you guys so much, then the numbers behind the lawsuit do begin to add up.
I wouldn’t, however, compare downloading illegal content to stealing a car. The thing is, it costs nothing in man-hours, capital or resources to reproduce a TV show in digital format. Whereas with a car, it costs plenty. It’s that perception that has made illegal downloading so rife across the world. I’m not saying it’s right (there are, of course, wide implications) but those are the facts. All I’m suggesting is that the number can be offset by the offering of a little free content (with paid-for adverts, of course), because at least it’s something that the would-be downloaders would still be getting their content from you. And for those who want more shows online, they can pay online subscription services, or perhaps link the charges to their already existing OSN TV packages. So much media is consumed from the computer screen these days, so surely it’d be good to recognise that market.
I think it’s awesome that you guys are developing a decent online platform, and I’ll certainly be using it to enjoy my shows. Will the service be automatically available to OSN subscribers (I am one), or will we have to sign up for it? Either way, as long it’s user-friendly, it should be a massive success for you guys. As I said, the Middle East needs some good online platforms.
Thanks again for offering your side of the story, and thanks for the discussion. Feel free to comment back on anything else you’d like to throw in.
Best,
Tom
I would love to point out the flaws of why I cannot stand OSN. Even as an ex-employee I very rarely find a movie I enjoy watching without paying extra on top of my monthly subscription for ‘Box Office Movies’!
This is probably why so many people have resolved to piracy… because they are actually getting what they want.. when they want it. It was normally the case when speaking to the general public as an employee; people wanted individiual channels rather than having to opt for select ‘Packages’. I do not watch OSN Shasha.. so why should I pay for it.
I understand OSN have to cover their costs by including channels you do not want and by doing so they charge you more, but I couldnt agree with Tom more on a solution.
By providing select channels online and ‘dropping a carrot’ for select programs it would entice people to PAY for what they want. I’ll give you a real life example. http://www.motogp.com. They have free videos and if you want to watch exclusive interviews and the races/qualifying then you pay for it.
But why wouldnt someone just watch the streamed races online for free.. Its because of a lack of quality.
For one low cost price of 95 Euros per annum I get HD viewing whenever I want that I just connect to my 50 inch TV.I also get accessibility. I can watch it wherever I am in the world. Its super. Its also in English, French, Italian for whoever I have over.
Im looking forward to OSN’s 2012 revamp because they are in need of yet another one!
Paul
Tom. I appreciate the dialogue. With regards to the Digital Platform, yes it will come free to you as an OSN subscirber, and will be linked to your level of subscription. It won’t be a streaming symulcast of that which you see on TV, but will provide you with content matched to your subscription, downloads of content in license on your OSN box and a wealth of other features. It will appear on line, on tablet and on smartphones. We’re pretty excited about the opportunity and the product is in the final stages of development. With regards to your comments above about free to view content supported by Advertising.. it already exists.. and is called Free to Air TV.. its available everywhere. Ultimately, if you don’t want to pay for early windows, which I fully respect, then wait and watch it free a year or two later. It is all there for you to see. Best David
Awesome