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NBC Still Down On P2P But Plans To Use It Themselves

Posted by Zonk on Thu Mar 13, 2008 12:23 PM
from the what's-that-again dept.
Cotton Eye Joe writes "Ars Technica has an interview with Rick Cotton, the general counsel for NBC Universal who is best known for saying that piracy is a more serious offence than robbery. Cotton still has some strong opinions on P2P, even though the network will be using it for distribution. 'He's convinced that the pirate problem is costing NBC Universal real revenue and that the scale of the problem is so vast as to discourage investment in the carrots, positive solutions like Hulu. "With all that pirated material available, it creates tremendous disincentives to content owners who need to invest in new content," Cotton says, "and that just hurts consumers over time."'"
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[+] Your Rights Online: Piracy More Serious Than Bank Robbery? 501 comments
An anonymous reader writes sends us to Ars Technica for a dissertation on how detached and manipulative the discussion about copyright is becoming. "NBC/Universal general counsel Rick Cotton suggests that society wastes entirely too much money policing crimes like burglary, fraud, and bank-robbing, when it should be doing something about piracy instead. 'Our law enforcement resources are seriously misaligned,' Cotton said. 'If you add up all the various kinds of property crimes in this country, everything from theft, to fraud, to burglary, bank-robbing, all of it, it costs the country $16 billion a year. But intellectual property crime runs to hundreds of billions [of dollars] a year.'" Ars points out how completely specious that "hundreds of billions" is.
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  • Huh? (Score:5, Insightful)

    by sm62704 (957197) on Thursday March 13 2008, @12:27PM (#22741058) Journal
    piracy is a more serious offense than robbery.

    Huh? And this guy makes how much money every year?
    • Its more serious to them. They believe that a single stolen dvd set of Seinfeld will cost them less than one guy putting it up on bittorent.

      Sort of like the old addage " Steal a fish from a man, he won't eat for a day. Tell the whole village how to steal his fish, and he'll never eat again."
    • Is revenue loss due to piracy even quantifiable? Some stuff that I've pirated is stuff I would have never bought or rented.
      • Then why is it worth pirating?
        • Re:Huh? (Score:5, Funny)

          by aplusjimages (939458) on Thursday March 13 2008, @02:02PM (#22742372) Homepage Journal
          I usually end up realizing that it wasn't worth pirating as well.
          • Re: (Score:3, Insightful)

            They also seem to forget the gains they make,not only in advertising,but in new customers.I ended up buying the complete Joss Whedon collection because I caught a couple of Buffy season one episodes on P2P.They didn't show it here and I never would have gotten into it otherwise.They also seem to forget folks like to collect things.I could have downloaded the entire thing on P2P,but it looks a lot nicer on my bookshelf with a couple of Sideshow collectibles as bookends(which I'm sure they get a cut of in lic
      • not only that , but what if you pirate stuff you already own ( legally ) .
        It can be a lot faster to just download it , then to go looking for some scratched cd stacked in a box somewhere , wich probably won't play anyway.

        You payed for that , so why shoudn't you download it ?

        Also , what would the price be ? A new song is a lot more expensive than a song played 20 years ago.

    • I think he meant "Stealing from me is a worse crime than stealing from someone else." Which is a philosophy I subscribe to.

      Still.. what a douche.
    • Re:Huh? (Score:5, Funny)

      by dgatwood (11270) on Thursday March 13 2008, @01:45PM (#22742142) Journal

      Not replying to you so much as replying to the NBC exec....

      Of course piracy is worse than robbery. Holding someone up at gunpoint or with a sword while in the middle of an ocean and threatening to kill them if they don't hand over all of their valuables is about as bad as you can get. I mean, what's to stop them from killing their victims just out of spite? There's certainly no possibility of law enforcement ever being able to catch them, practically speaking, as they're out in the absolute middle of nowhere, so it is basically a low-risk, high rewards way of leaching off of society.

      Oh, wait... you are talking about copyright infringement? Worse than robbery?

      *blinks*

      *spews soda everywhere, then laughs hysterically*

      That's a good one. You really had me going there. I thought you were serious for a minute. You're kidding me, right? Right? ... Right? ........... *blinks*

  • BSG anyone (Score:3, Insightful)

    by T-Kir (597145) on Thursday March 13 2008, @12:30PM (#22741094) Homepage
    Isn't Battlestar Galactica one of the biggest traded shows on P2P? In that case he is probably getting the subject and Mediasentry-like buddies up and going for the new series premiere next month.

    Just my first thought and £0.02
  • Simple economics (Score:4, Insightful)

    by elrick_the_brave (160509) on Thursday March 13 2008, @12:31PM (#22741108)
    I love it when spin doctors change the reality of the situation. From an economics standpoint, if there is no supply (e.g. meeting market demands with new product and services - how long have we been asking for newer methods to access and enjoy our entertainment ) then how on earth do you expect demand to come into play?

    I have always wanted to buy cool things... I reward convenience with my cash. I reward innovation with my cash. I reward customer service with more cash than if I find a cheaper competing product or service.

    If a company didn't respond to market changes in the past, it was called incompetence and the management was fired. These days it seems like the short term desire for quarterly profits blinds people to that.

    As I said, you can spin the results any way you want. What makes the money is selling what people want.
    • P2P is only OK if we can use it to make money and make our quarterlies.
    • Re: (Score:3, Insightful)

      I love it when spin doctors change the reality of the situation.

      If you want spin doctoring, his comment about disincentives is hilarious.

      Piracy is just another variable in the "will this be profitable" equation. The equation for DVDs and movies is stupid simple, but is a bit more complex for TV.

      TV: Possible advertising sales - cost to produce - possible eyeballs (ad revenue) lost to piracy = X
      If X > alternatives for that timeslot then you have a keeper

      Does he really expect us to believe that "not making as big of a profit" is a disincentive?

  • NBC's real problem (Score:5, Insightful)

    by peragrin (659227) on Thursday March 13 2008, @12:32PM (#22741118)
    is the lack of quality programming and the massive amounts of commercial breaks per 30 minute episode.

    The last things on NBC I watched was Hero's and the Knight Rider Movie. Both of them felt very funny like i was watching 4 minutes of show and 4 minutes of commercials. by the time i got through 2 hours of the Knight Rider movie I was pissed off.

    Watching NBC is like listening to Wil liam Shat ner speeeeaak. Ev ery thing is drawn out.

    sorry I couldn't keep it up my brain kept fixing the errors.

    Cut the ads down to less than 15 minutes per 30 minute episode and people might start watching again.
    • All the networks, indeed all of cable, suffers from a lack of quality programming. Even "newcomers" such as the Discovery Network, the Sci-Fi Channel, and the Science channel started off great but sled down the slippery slopes to mediocrity.

      Why should I spend $100 a month for lack of quality programming despite the vast array of "choices" of hundreds of channels

      There was a time I had both Satellite and Cable TV; now I have neither. It is simply easier to BitTorrent the few things I like, and sans the rest. Then I can watch what I want at my leisure, on my schedule, free of commercials that rarely, if ever, promote anything I am interested in anyway.

      If the network providers like NBC, CBS, etc. can't understand that, the to balls with them. I am more than happy to pay for quality, and that also means not being inundated with bazillions of commercials that take me out of the story anyway.

      NBC is its own problem. They now have to compete with YouTube and MySpace and MMORPGs and everything else we can do online. That's the real thing that is killing them. They just can't compete, and they use P2P as a scapegoat to whine about their "losses".

      Even the news outlets like MSNBC and CNN leave a lot to be desired, which is obviously more interested in the corporate bottom line and political correctness than reporting real news. I always find it amusing to read on the BBC website interesting news happening in my "backyard" here in the US without seeing any reference of the same on our own news outlets. Funny that.

      Give Me Quality Content, and I will be more than happy to give you my eyes, and maybe a few bills as well.

      • It's not even that 99% of TV is crap, and that the few interesting shows are more easily downloaded via bittorrent. They are competing not only with all entertainment that currently is being developed, but with all entertainment that has EVER been created.

        If I go to watch an edition of Shakespeare in the Park, I don't watch the latest American Idol. If I listen to the Brandenburger Concertos, I don't listen to Lindsey Lohan. If I watch Metropolis, I don't watch 10,000 BC. If I play Chess, I don't play Teamf
    • The last things on NBC I watched was Hero's and the Knight Rider Movie. Both of them felt very funny like i was watching 4 minutes of show and 4 minutes of commercials.
      Wow, you got more out of it than I did. The whole time I was watching that Knight Rider "movie" I kept thinking that the entire thing was just one big car commercial.
    • by cashman73 (855518) on Thursday March 13 2008, @12:48PM (#22741360) Journal
      Well, I watched the last three episodes of Heroes on NBC's own site online, and watched Knight Rider via bittorrent from TPB; both are legally available on NBC's website online via streaming. While I'm all for NBC being able to put advertisements in their videos so that they can make a buck and the writers and actors can get paid, the issues I have with the NBC "legal" streams are (a) not really "full screen" (it's close, but it's still 'boxed-in' enough that it shrinks the size of the show enough to be annoying) and (b) the advertisements show, while still shorter than what you get over the air, is the SAME FREAKIN' AD OVER AND OVER AGAIN! Let's have a little variety at least,... So if NBC can fix these two issues, that would be excellent! And these are definitely totally "fixable" issues within their control! I actually WANT to give them the advertising dollars that they deserve, especially since I can't get NBC over-the-air due to the location of the building I live in combined with Pittsburgh's ridiculously variable terrain. Not to mention I don't want to give those thieves at Comcrap any money, either.

      On another note, I've noticed that they've put the original Battlestar Galactica series on NBC.com in the past month or two. Let's hope they put the new shows online when they come out in another month, too,... ;-)

    • Re: (Score:3, Interesting)

      I think you exaggerate. I use a DVR to skip commercials. I notice how long half hour network shows actually run. It's about 22 minutes of show and 8 minutes of ads, same as always. What the networks seem to be doing is making more frequent, shorter ad breaks, and putting them in odd places. There may be six minutes of show, one minute of ads, then four minutes of show and three minutes of ads. I think they are trying to confound and confuse DVR users into giving up on using the 'thirty second skip' feature
      • Try an experiment use the DVR to time episodes of popular shows the first time they are aired. While most syndicated stuff is still 22 minutes. Things like the Knight Rider movie, and American Gladitors will be less.

        I know Sci-fi channel does a lot of 22,8 setups. And it is to those that i am comparing.
    • Ads really are the driver of this market, and therefore the crux of its problems in adapting to new technologies like P2P. Advertising is largely what pays for these networks and the shows they bankroll. Youtube and Tivo are ad killers, so it it does present a genuine problem to the revenue stream of the traditional broadcast media business model.

      While there may be no one obvious solution, if you're a TV network there are definitely some things to NOT do.

      1. DO NOT put MORE ads in your programs - you'll

      • You are 100% correct, however the very few events that actually compell viewers to watch are not typical. Heros and the Knight Rider movie do/did have more commercials that your typical show. Was it 50%? No. but it wasn't 16m per hour either. The sad thing is than the only thing compelling about the Knight Rider movie was how much of a train wreck it really was. That's the great thing about those movies for the networks. No matter how bad, people watch. The real sin will be when they look at the numbers it
  • by zappepcs (820751) on Thursday March 13 2008, @12:34PM (#22741148) Journal
    You can (IMO) ignore this guy as uninformed, or more dangerously, misinforming the legislative processes.

    "You have to start with the first proposition," Cotton says, "which is: should we collectively be concerned about the fact that 50 to 75 percent of the total bandwidth of broadband ISPs is today taken up by P2P traffic which is in fact overwhelmingly pirated? I have to tell you, I think the answer to that is yes."
    Lets see some facts and resources here? Prove it was pirated! I dare you.

    He goes further; P2P protocols themselves disrupt the Internet by passing bandwidth costs from content owners onto ISPs. Cotton told the FCC in a recent filing, "P2P applications shift the costs of centralized storage and distribution to end users and their broadband network providers."
    Obviously, he thinks that we, the end users, have not paid for the use of the bandwidth? WTF? Perhaps he believes that Google should pay for ALL OF THE INTERNET since they index it? Or maybe Facebook should pay for their 15% of the Internet in North America? This is just double speak so they can end up double-dipping. If they are able to establish clear end to end connections for content distribution then it will clearly be easier to determine who they want to litigate against for illegal content and bandwidth usage. They WANT the Internet to be a series of trucks running through tubes they build and control all the way to your eyesockets.
    • Lets see some facts and resources here?

      How do you propose they legally do that? Are you willing to let them investigate p2p traffic and take a look?

      Prove it was pirated! I dare you.

      Be careful what you wish for. What if he's right? How does that affect your arugment? For the record I'm willing to bet most p2p traffic *is* transferring copyprotected works to people who don't have any license of any sort to the work at all.

      Yes P2P has legitimate uses, and yes, those uses are significant, but you think they are
    • Re: (Score:3, Funny)

      Prove it was pirated! I dare you.
      Yeah dude, I'm sure there are 10 million people on ThePirateBay just sharing linux ISOs.
  • by blcamp (211756) on Thursday March 13 2008, @12:35PM (#22741162) Homepage

    Happens when the network's "content", which turns out to be nothing other than more disappointing dreck, wastes my time, energy and other resources. That's piracy against me.

    Trust me, NBC/Universal, none of your nonsense flows through any of the copper in my house.

    Same goes for the other traditional "TV networks" in these United States.
  • by Jason Levine (196982) on Thursday March 13 2008, @12:36PM (#22741184) Homepage
    Rick Cotton is also the one who claimed that Piracy hurts Corn growers [techdirt.com] because -- without piracy -- theaters would sell more tickets and thus more popcorn. Don't you see what you're doing all you P2P users?!! You're hurting the poor popcorn farmer. And his family. Won't someone think of the popcorn farmer's children?
    • by un1xl0ser (575642) on Thursday March 13 2008, @12:50PM (#22741388)
      I don't think that any corn growers are wondering what to do with their product these days, what with ethanol production ramping up everywhere and driving the price up.
    • by Technician (215283) on Thursday March 13 2008, @01:14PM (#22741702)
      You're hurting the poor popcorn farmer.

      Almost right.

      Let's try again. Monsanto owns the copyright on popcorn seeds. Only Monsanto can grow popcorn. Some farmers in China managed to copy a couple of seeds and are growing their own popcorn.

      Someone else drives a harvester through Monsanto's field and steals their popcorn crop.

      Which is theft and which is a copyright violation? Get it right. In one case Monsanto still has a field of popcorn. In another, it has been stolen.

      It boils down to protecting a single popcorn growers monopoly on the popcorn market. This isn't about theft. It's about copies of a product.

      If you can only buy popcorn at Regal Cinemas at $8.00 a tub, that is a monopoly. Fortunately I can legally buy popcorn seed to grow my own, or buy bulk seed and pop my own.

      http://www.popcornpopperdirect.com/popcornsupplies.html [popcornpopperdirect.com]
      50 lbs of seed (4 ea 12.5 lb sacks) for under $40.

      You can plant it if you wish. This is enough for about 4 acres of land.
      http://www.wildlifetrends.com/deer.cfm [wildlifetrends.com]

      I used the Monsanto company as an example as they are into genetic engineering and are suing the neighborhood farmers who happen to be the unlucky recipients of cross pollination from the designer varieties. They are trying to litigate the competition out of business. The above "We own the copyright on popcorn is becoming reality.

      http://www.i-sis.org.uk/MonsantovsFarmers.php [i-sis.org.uk]
          Monsanto VS Farmers
  • "and that just hurts consumers over time."

    I see no mention of consumers in there. I didn't realize that patents and copyrights were to protect consumers. Please, explain this to me.
  • With all that pirated material available, it creates tremendous disincentives to content owners who need to invest in new content," Cotton says, "and that just hurts consumers over time

    If the worst that happens is writter's strike level of "new content" then I am all for piracy.

  • by binaryspiral (784263) on Thursday March 13 2008, @12:50PM (#22741390)

    and that just hurts consumers over time.


    No, you dumbass... I think you don't understand that P2P was the answer to all the things you did to piss off consumers.

    Forcing TiVo to eliminate the commercial skip pissed off consumers.
    Using outdated ratings and canceling popular shows pissed off consumers.
    Eliminating popular distribution methods (like ITMS) pissed off consumers.

    When you alienate enough of them - they fix the problem themselves. P2P is the solution to the problems you created.

    TV itself was a gamble when it first came to the public. NBC invested in it. Now they say they won't invest in new mediums because of pirates... give me a damn break. Quit your bitching and listen to your viewers - yes, even the pirates.
  • The media companies could greatly reduce current TV show piracy by offering them over the web, broadcasting at the same time as regular cable and over the air. Why pirate an hour later when you can watch it now, even with commercials? Of course the cable companies are blocking this since they control so much of the distribution and want their cut of the advertising. On top of that, the cable companies are actually making money off of piracy since so many pirates are spending their $60 a month for Comcast

  • I'm seen a ton of the usually P2P and "Piracy" comments... let's look at the other part of what they want to do...
    Use a P2P network that they didn't build, didn't buy or contribute to, didn't ask permission to be on, all in order to promote their content and make money.

    Who are the real "pirates" here ? NBC it seems. Why doesn't someone just build a filter that prevents NBC from placing content on the network ? Shouldn't NBC put money into BitTorrent, or be accused of stealing themselves ?

  • DRM and other crackdowns on how we can obtain, and what we can do with, legitimate digital copies of programming are giving customers massive disincentives to seek these legitimate copies out. Even ignoring price, the best product currently available is the pirated one, so it's no wonder that customers are voting with their mice.
  • Do as we say, not as we do.
  • ...is a worse crime than serial murdering half a town in another country.

    Who cares about crimes that don't affect me? We should spend more taxpayers money on crimes that reduces the sales of my goods.
  • Apparently, media moguls do not breakfast on a diet of puppies and children
    Obviously, puppies and children are more of an after dinner snack, for enjoyment with a snifter of brandy while they sit in front of a blazing fire in their library, contemplating new evil schemes!
  • He is right! (Score:3, Insightful)

    by Belial6 (794905) on Thursday March 13 2008, @01:46PM (#22742166) Homepage
    He is right. Piracy, and thus by definition, P2P has STOLEN so much profit that there is no longer any incentive to create new work. NBC should immediately show us that they truly believe this and cease doing business in a money loosing market. In fact if they do not, the shareholders of NBC should immediately initiate a class action lawsuit, as the NBC executives are clearly harming the financial health of NBC by spending millions of dollars on the creation of new content where there is no incentive to do so.
  • I don't watch it, so I don't care. Let your hideously obsolete business model die quietly and inoffensively, causing as little trouble to others as possible.
  • by Digital_Quartz (75366) on Thursday March 13 2008, @02:45PM (#22742798) Homepage
    "[The] problem is so vast as to discourage investment in the carrots, positive solutions like Hulu."

    And who's fault is that, exactly? Who sat on their heels, clinging desperately to their sinking and outdated business model while new distribution systems were built? Who refused to license content to the new distribution systems? Who, after years of being thrashed by modern technology, finally tried to counter the problem by building DRM encumbered systems that gave the customer far less value than the "pirate" option, while charging much more?

    Content owners have, in effect, "trained" the public to be pirates. If a DRM-free system for downloading TV shows and music had existed 10 years ago, most people would probably never have bothered with Napster, and this whole problem would have never existed. If 6 years ago, the content owners had responded to Napster and other P2P technologies with innovation instead of lawsuits, likely software like Napster would have remained a niche product, used by the technically competent (as opposed to, say, my mother). All this senseless talk of "ISP level filtering" only tells us that the content owners have not yet learned the lesson. They are doomed to failure.
    • by cliffski (65094) on Thursday March 13 2008, @12:36PM (#22741190) Homepage
      well you should be 100% behind them using p2p for legal means the right? as they are making the slashdot point, that p2p has legal uses. You can't be defensive about legal P2p, and against companies using it at the same time...

      I see no problem with them being anti-piracy, pro-copyright, and pro-using p2p for legal means.
      • I'm all for him parading his legal use of p2p protocols, but he doesn't leave it at that. He desires ISPs to use filtering technology to weed out pirated files.

        When we talk, Cotton makes clear that he's not "a technology guy" and that he doesn't much care how the filtering is accomplished. He fully grants the importance of privacy and fair use, and he's concerned about casting a net too widely. But something, anything, needs to be done.

        He does however recognize that AT&T (and other ISPs who would use a

    • Re:The summary... (Score:4, Insightful)

      by Brian Gordon (987471) on Thursday March 13 2008, @12:52PM (#22741424)
      It also uses the word "carrots". I don't get it.
    • They are using p2p to distribute their TV shows which are supplied on their websites now through Pando Networks.

      NBC will start using P2P technology from Pando Networks to distribute its shows through NBC Direct. Using P2P allows the company to save on the massive bandwidth bills it would otherwise incur from distributing HD-quality video.
      I know it was 3 pages, but it's an interesting read if you have the time to spare.
    • Re: (Score:3, Interesting)

      "Why should customers of a commercial P2P distribution service not only pay for content, but also provide extra bandwidth to help other customers download content?"

      So far the answer is that if you're willing to contribute resources to the p2p network you can get access to content that you can't otherwise get, or to get it at a higher quality than you can get without p2p. For an example of the latter, if a video publisher can afford to spend $X per delivery, that revenue number limits what they can afford to