What Price Is “Free”?

Imagine shopping for groceries in a store where everything costs $0.00. That’s right, it’s all free — as long as you watch a 30-second commercial for a new frying pan or some other product before you can put each “free” item in your basket. Out of every hour of shopping, you would have to spend 20 minutes watching ads.

Note: you’re not scoring caviar and truffles here. In order to reach as many consumers as possible, the advertisers would only sponsor products that had mass demand, like Coke or Doritos or Cheez-Whiz. Mmm, healthy. How would you like that experience?

Ludicrous But True

That sounds silly, but that’s how our “free” media markets work. You pick your item — like a TV series episode — and watch ads to pay for it. The advertisers only support the items with mass appeal, so forget that edgy, critically-acclaimed series with the no-name cast. You’re getting another star-studded version of “CSI,” and you’re gonna like it!

The Internet was supposed to change all that. But it hasn’t, really.

The Internet significantly reduced the costs of marketing and distributing media. But instead of delivering more choice, most of these great online tools and services are still focused on the same mass-produced media. On the “free” sites like Hulu and YouTube, consumers are still asked to watch ads — prerolls, postrolls, banners, or those awful overlays — in return for their junk food, I mean, media.

Another Problem

If supermarkets went that ad-sponsored route, they would attract consumers — but not the ones the top advertisers want. A consumer who’s willing to watch an ad in order to score a free Twinkie is probably not the kind who’s going to buy a new Jaguar. As a result, the advertisers in those stores would be those that appeal to the lowest common denominator, such as the too-good-to-be-true mortgage deals or miracle hair-growth cures.

Sound familiar? Those are the kinds of ads that infest the current “free media” sites. The ads are often so low quality, they bring down the entire experience. This turns off more discriminating consumers, and if those consumers don’t show up, the producers of sophisticated, eclectic media won’t, either. Consequently, the ratio of quality to dreck on YouTube is too big to be counted.

Fortunately, Consumers Want Better

There’s a positive trend happening now in grocery stores that I bet will soon carry over to media: consumers are now willing to pay extra for products that match their tastes and values.

Buying organic foods and fair-trade products has become the “right thing” to do. Many consumers are now feeling a responsibility towards the eco-system, small farmers and their own well being. Since organic and fair production costs are often higher, the products often bear a premium price, but more and more consumers are realizing that if they want something good and sustainable, they need to pay for it.

Whole Foods has profited on that trend in the world of supermarkets. HBO has profited on that trend in the world of television. Who will do it in online media?

Not iTunes

Apple’s iTunes certainly made it easier to purchase media, but the choice is still largely limited to corporate-produced music and movies. Quick, get your latest single by Mariah Carey for only 99 cents!

When consumers fork over that 99 cents, they feel little responsibility to the companies or even the artists who created that song. They don’t know where that money’s going — to Apple, to Mariah, or to the record-company CEO who’s pulling down 7 or even 8 figures. “It’s mass media, anyway, by producers who could care less about their craft or their audience, and they’re so rich, they won’t notice if I just copy the song from a friend…”

Appealing to that Sense of Responsibility

So just as I’d rather pay for organic fair-trade coffee, knowing that more of the proceeds were going to the farmer with the sustainable practices, I would also pay for brilliant media if I knew most of the proceeds were going to the artist with true talent. The “premium” would be worth it.

The key to achieving this ideal media market is to combine all that great internet technology with complete financial transparency, so that discriminating consumers know exactly where their media dollar is going. In other words, combining free market practices with fair trade values.

That’s the easy part, and it’s almost done (stay tuned for more announcements). The big challenge now is getting those discriminating consumers and those high-quality media producers on the same site at the same time.

That’s the challenge I’m facing now — and it’s one I eagerly embrace.

Five months ago I took the leap: I threw out my TV and went all digital — as in, if it can’t be watched on my computer, I can’t watch it.

I’ve since had some enjoyable experiences with online media as well as a few experiences that made me bang my head against my monitor. There are definitely technological advances that need to be made before an online-only video experience will become a viable alternative for a non-tech person.

But for those of you who are ready to make the switch, like me, here’s my personal hitlist of video options…

Favorites

I know iTunes and Netflix aren’t entirely free, but they work great and you always get what you order. The others are more of a gamble to find anything worth watching.

iTunes

http://www.apple.com/itunes

The price points for renting and buying videos are about double what I think they’re worth, so I still have to think twice before pressing the buy button. (RedAntenna doesn’t pay me that much.) Remember to check out the podcasts, which include free videos from the likes of CNN, BBC, MSNBC, etc.

Netflix

http://www.netflix.com

I know Netflix is not primarily online, but members can stream videos from their site if you have a PC (Mac isn’t yet supported because of DRM issues, which is frustrating). I happily pay the $14.95 monthly subscription to get high quality DVD’s and all those bonus features.

Hulu

http://www.hulu.tv

The interface sucks, but the picture quality is high for streaming video. My biggest gripe is that Hulu force-feeds me ads and allows me to watch only the latest episode or 2-minute clips from the show and every time there is an ad my full screen gets shut down to view the ad without going back to full screen when the video resumes. I want ALL the episodes in their entirety so I can watch a series from the pilot on, not from somewhere in the middle.

NBC

http://www.nbc.com

This website feeds into and runs on the same platform as Hulu.

ABC

http://www.abc.com

This website feeds into and runs on the same platform as Hulu.

Southpark

http://www.southparkzone.com

Great initiative from the Southpark guys themselves. And it’s free.

Pirate Ships

There are also hundreds of sites with pirated TV shows and movies, and while they’re “free,” their quality and selection are so unpredictable that I’ve started using them less. I haven’t tried all of them so I’d be very interested in which ones are your favorites. These are my honorable mentions in the illegal-but-free category. (Note: If you do have a good paying job, stick to my favorites above and don’t waste your life surfing horrible websites just to save a buck or two. Plus, I’m not responsible if the MPAA comes after you.)

http://www11.alluc.org/alluc/

http://quicksilverscreen.com/

http://www.watchtvsitcoms.com

The Great Unknown

Finally, here are a bunch of other sites where you might get lucky and find your favorite TV show or movie free, but don’t expect the hunt to be easy or fast.

http://www.veoh.com

http://alloftv.net/

http://freetube.us.tc/

http://www.live-online-tv.com

http://quicksilverscreen.net/

http://tvliveshows.com/

http://www.streamick.com/index.php

http://www.tv-links.co.uk/

http://wwitv.com/portal.htm

http://www.internettv-live.com/

http://www.viewmy.tv

http://www.livetv.ws/register/7922

http://www.hiveproductions.com/shoutcast

http://www.ppstream.com/

http://www.tvgratis.tv

http://dynamic.abc.go.com/streaming/landing

http://peekvid.com/

http://www.stansdad.com

http://www.pplive.com/en/

http://tv-video.net/

http://www.football4less.com/streams/tvuplayer.html

http://www.chooseandwatch.com/

http://www.video.glath.com

http://www.EpisodeNetwork.com

http://www.myeasytv.com/

http://www.worldwidemediaproject.com

http://www.glozy.com/

http://www.tv-nation.com/

http://bestvwd.blogspot.com/

http://www.sidereel.com

http://www.ssupload.com/

http://cooltopten.blogspot.com

Http://wwitv.com

http://www.peekvid.com

http://www.greatstufftv.com

http://fatboymedia.com/movietv.html

http://www.mytheater.org

http://www.ovguide.com

http://www.fanpop.com

http://www.funfreezone.com

http://www.likevid.com

http://www.movinflicks.com

http://www.vid-stream.com

http://www.joox.net

http://www.watch-movies.net

http://www.megavideo.com/

http://www.onlinecinema.org

http://www.nabolister.com

http://www.wizmovies.com

http://www.movie6.net

http://www.tvrss.net

http://www.slyfoxtv.com/Movies.html

http://www.bedroommedia.com

http://www.movieforumz.com

http://www.graboid.com

http://cinemaplex2.tk/

http://www.free-tv-video-online.info/

http://alloftv.net/

http://www.moviethis.com

Please comment with your favorite media sites and I’ll update my list later.

Please help me understand this about watching old TV shows…

Right now I have the following options for watching an episode of my second-favorite TV series “Lost”:

DVD: Great quality and value, with loads of bonus features, but a hassle to get if you want it now (particularly if it’s 3 in the morning). You can put out $40-50 for an entire season, or wait while Netflix delivers one disk at a time…

BitTorrent: Good quality, not instant, but free. Sometimes you waste time downloading a falsely tagged foreign-dubbed version. Most significantly, it’s illegal. If everyone used BitTorrent, then “Lost” wouldn’t pay for itself and the producers would stop making more shows like it — and that CANNOT happen.

iTunes: $1.99 per episode. Decent quality with DRM, but quick downloads. About the same per-episode cost as a DVD. And that’s expensive for an entire season, ’cause I’m not getting big-screen quality or bonus features.

Hulu/ABC: Free streaming of decent quality… in return for your watching 3-5 commercials. But as I mentioned in my earlier post, ads destroy the user experience.

So here’s my question: Why is it $1.99 to watch an online version of the show without ads, and free with ads? Do ABC and the show’s producers get $1.99 from the advertisers for those 5 spots?

I doubt it, but it’s impossible to tell because the pricing is not transparent.

If the advertisers are paying 50 cents per viewer, let me know, and I’ll happily pay 50 cents — even a dollar — to watch a streaming version without ads. As a consumer, all I want is an option. Is that too much to ask?

Remember when MySpace promoted indie artists by partnering with SNOCAP? Well, apparently that wasn’t enough. MySpace is now launching a new music service with the big boys: Universal Music, Sony BMG and Warner Music Group and probably soon EMI. Meanwhile, SNOCAP has become part of Imeem.

The new MySpace service will offer an array of ways to enjoy music, from free streaming to paid downloads, to take on market leader iTunes. While the new service sounds intriguing, what will happen to all the indie artists on MySpace? Will they get to play in this new sandbox with the corporate labels?

Like all other Web 2.0 sites, the value of MySpace depends on its number of active users. To date, many of them have been independent musicians and other artists, and that’s because the site was originally launched to serve artists and their fans. But nowhere have I seen any mention how they’ll be involved (or ignored) in the new music service. Shouldn’t MySpace include these talented users who helped the company become what it is today?  

If you haven’t seen the TV series “Heroes” yet, you’re missing out. This addicting series combines great writing and pacing with a very eye-friendly cast — but make sure you watch “Heroes” and not “Heroes.”

What am I talking about?

I got the first season of “Heroes” from “a friend” (aka BitTorrent) and blew through all 23 episodes (each 43 minutes long) in 3 days.

I then decided to watch the second season legally, so I went to NBC’s official “Heroes” site (which inexplicably no longer offers season one). I got my “Heroes” fix there in exchange for being force-fed 4-5 commercials. I sure missed the non-stop experience, but this was easier and the quality was good. I didn’t have to suffer through a long download and I got the episodes in the right language. 

Thanks to the streaming episodes online, I caught up to the current broadcast and could watch “Heroes” with my friends. It was the season finale, so I stocked up on Coke and chips, sat on the edge of my couch, and started counting down: 3-2-1… Ford Tundra? Goddamn ads. Not quite the 30 second prerolls I had grown accustomed to on NBC’s site. But the show started and it was great… for about 7 minutes… then ads again… then 5 minutes… then ads again… and so it continued for a total of 17 minutes of ads in a one-hour show. That’s about a minute of ads for every 2 minutes of entertainment.

The experience was putrid — what should have been an entertaining experience was completely ruined by ads that were completely irrelevant to the show or my interests.

Here’s my suggestion to my fellow media junkies: Watch “Heroes” but NOT on live TV. No show, no matter how good, is worth that much torture. Get the DVD’s through a store or Netflix, or download the episodes  from iTunes. The time you save will be worth every penny. You won’t be up to date, but you won’t lose your mind, either.

On a positive note, if the live television experience doesn’t improve, more and more consumers will turn to the Internet for their entertainment fix. And companies like mine will be ready to feed them.

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My company, Redantenna.com, has set up shop right in the heart of Silicon Valley at 200 Page Mill Road in Palo Alto, California. I think the office is pretty sweet, no? This sets the stage for our fair internet campaign later in 2008.

Along with the office, RedAntenna.com hired me, Anders Hjorth, to establish its US presence. I was an associate and founding team member of Innovation Center Denmark in Silicon Valley, which gave me firsthand experience with a diverse array of startups. My mission is to take that experience and contribute to RedAntenna’s strategy, positioning, marketing and technological development. My primary task right now is to connect with interested testers for our closed beta and to gather feedback on our concept and technology.

If you’re interested in hearing more about any of this, please don’t hesitate to contact me directly at alh@redantenna.com or at +1 650-543-8167

Located out in the middle of nowhere, Ontario, California seems about as far away from Silicon Valley as Ontario, Canada. But when I hit the 3rd annual New Media and Podcast Expo staged there at the end of September, I found myself amidst a thousand podcasters and producers assembled for the 3-day conference. I attended “incognito” to get a feel for how amateurs and professionals use the Internet for media distribution and perhaps chance upon some business opportunities.

When podcasting first started, the producers were generally averse to advertising in their programs and videos — sounds like the early days of the Web. But as the producers evolved from “doing it for the kicks” to a more business-oriented mindset (hey, everyone’s got to pay their broadband bills), advertising became the norm or at least the goal.

Ad inserts, banner ads, prerolls, postrolls and product endorsement deals have appeared on many of the producers’ wish-lists, but as of yet, very few advertisers have responded. I was very interested in the proliferation of “small” podcasts, which often have very narrow but passionate listener bases. While they have a hard time finding appropriate sponsors, I thought they would fit RedAntenna’s distribution concept perfectly. I was also happy to see the general interest in educational podcasts, since these are a big part of our plan.

Overall, the conference was well organized and — despite being out in the middle of no man’s land — it was fun and entertaining. I got to meet that Ask A Ninja dude and the guy behind French Maid TV (though I would have preferred to meet the French Maids). The main message to producers was to start thinking about themselves as “big media” if they want to make any money.

Would consumers pay 10 cents to $2 to listen to quality podcasts or videocasts without advertising?

What kind of topics would they be most willing to pay for? Entertainment or educational?

Would people pay for “greatest hits” collections of podcasts, either on DVD or as a download?

I did leave with a few unanswered questions: I think all these producers who devote their personal time, energy and resources to create quality podcasts should be rewarded and incentivized to produce even more. The question is, will consumers agree?