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If content owners are never satisfied that the medium is a safe place to entrust their media assets, there will hardly be much available via streaming media that is worth watching. Good content costs money to make. If it is open to immediate theft and redistribution by the first per-
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son to access it, there will be a strong incentive for content owners to avoid the medium. There were once, allegedly, clauses in the licenses issued by streaming media encoder, server, and player software vendors that made content owners flinch. In order to transcode media assets into proprietary streaming formats, the content owner was effectively required to sign away partial rights to his media property. With Hollywood properties costing hundreds of millions of dollars to produce, these content owners were naturally hesitant to use any technology that required them to sign away any rights whatsoever, merely to access another distribution channel. We can only speculate whether or not the streaming media software vendors intended to scare content owners away like this. Indeed, in the absence of professional media law opinion and access to the contracts and licenses in question, it is difficult even to verify whether or not such restrictive clauses were ever suggested. However, it would be a great pity if the streaming media industry failed to gain critical mass because of overzealous lawyers trying to overprotect the interests of their employers, the streaming media software vendors. If the clauses in question were inserted out of pure greed to acquire streaming rights to media properties by stealth, this was an unbelievably counterproductive position for these vendors to take. The point of this discussion is that until content owners can trust the medium and the digital rights management systems that will be necessary to protect their interests, the medium will struggle to achieve the sort of audience penetration that television and radio already enjoy. As we have seen elsewhere in this book, digital rights management solutions are far from mature, though much of the work being done under the auspices of the MPEG, for MPEG-21, holds promise. Consumer acceptance of rights management also remains a concern.
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The Audience Is Busy Doing Other Things
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Ironically, a significant risk to the success of streaming media is the backlash against television and the music industry. Television audiences and advertising revenues are falling and audiences are more fragmented than ever. Fewer people buy the number-one single in any given week because people have many more choices for how to spend their leisure time. They can play computer games or mess around with the computer, rather than watch streaming media. Alternatively, they can
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engage in real-life pursuits, rather than the more passive entertainment pursuits represented by broadcast television and radio. Because many people are more affluent, they have more toys and hobby options. These activities compete for consumer attention. Because many people have more to distract themselves with, it will be harder to get them to engage with streaming media than it was to create the initial television audiences. Teenagers, in particular, have begun to turn the Internet off. What was once a fascinating pastime has become just another thing to play with. The Internet wasn t what they wanted. The waiting was just too much. For streaming media to succeed, providers of the service will need a full understanding of the competition for attention that exists today so that they can market their services appropriately. There is little evidence that this is happening.
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The Audience Rejects Rights Management/E-commerce Security
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As we mentioned, if digital rights management and protection are seen as too obnoxious and obtrusive, consumers will simply reject streaming media and stick with other more familiar forms of entertainment. Consumers are rightfully concerned that rights management seems to be a one-way street, with protection for the content owners, but little to protect the consumers. They are also concerned that rights management will merely oblige them to pay again for music they have already bought on CDs. They fear that they will have to pay again and again to access music or videos they love. In other words, they fear that the content production industry is using the opportunity to compel them to pay more for their digital media. Any major record label or Hollywood studio that sees rights management as a way of extracting greater profits from media assets, through excessive access charges, could be in for a rude shock. There is already evidence that the movie industry has used DVDs to charge more for media content than they could with VHS tapes, even though the costs of production and distribution are somewhat lower for DVDs. What record labels and movie studios need to understand is that they no longer enjoy a de facto monopoly or control over the production, distribution, and marketing of digital media. Streaming media makes it possible for people with modest production budgets to produce quality entertainment. Distribution is much simpler with streaming media than mastering and
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