Are Walled Gardens Set to Go Up Around TV?

My wife is a HUGE fan of Friday Night Lights, but she can’t watch season three yet because it’s only appearing on DirecTV. In a move to save the struggling show, NBC and the satellite company struck a unique deal earlier this year that gave DirecTV the exclusive run of Friday Night Lights before its airs on NBC in 2009. Apparently Comcast has been looking to get into the co-production biz as well, and if this trend continues, it won’t be good news for TV watchers.

According to Broadcasting & Cable, Comcast says it was in the bidding to obtain the rights to Friday Night Lights, but wasn’t interested in shelling out the reported $12 million DirecTV paid. But moving forward, Comcast says it “might be more aggressive” in pursuing similar opportunities. Comcast COO Steve Burke told B&C:

“The notion of windows that are advantageous for our customers is something we will remain interested in.”

Locking up exclusive content is nothing new and certainly not specific to this industry. Sony Bravia Internet Link owners can watch Hancock before it’s available on DVD at retail, AC/DC is only releasing their new album in Wal-Mart stores, and web sites create exclusive content all the time.

But in an age of declining TV ratings, setting up artificial windows and fracturing potential audiences even further doesn’t seem like a smart move.

The difference between a web site and an operator getting an exclusive is access. Users can still visit a web site (even if it’s not their preferred site) to get the content, but if you don’t have a satellite dish, you don’t get Friday Night Lights. If this notion catches on with TV operators, it could get become a three-way brawl as satellite, cable and even telcos lock up programming and prevent non-subscribers from watching.

With networks like NBC looking to slash $500 million out of its budget next year, co-producing a show with an operator could be an offer they can’t refuse. But who gets screwed? The viewer who doesn’t subscribe to or have access to the right service and has to wait for it to be re-broadcast or arrive on DVD. And content companies wonder why people pirate material.

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