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Regional Restriction of Streaming Videos

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Regional restriction of streaming videos

The Internet — a fascinating place jam packed with things to read, to watch and to download. According to the ISC Internet Domain Surveys, the number of registered website domains doubles every 2-3 years. There are over 625 million registered domains in their last survey conducted in January 2009. Greater than 1.7 billion people use the Internet and the majority of usage since the creation of peer-to-peer (P2P) file sharing protocol (from 2003-2006) has been to download audio and video files via these networks. However, since 2007, HTTP web traffic retakes the number one position in bandwidth usage.

Ellacoya, the company who conducted the 2007 web traffic research, indicates this trend was due …show more content…

Since streaming videos also require a tremendous amount of resources, companies like Hulu will naturally restrict viewing to payable regions (i.e. the US) to reduce bandwidth requirements.

One might argue Hulu can readily find advertisers from outside the United States. While the US has 220 million users, there are 1.4 billion Internet users in the rest of the world. Why not offer content internationally and display in-video ads based on the user’s region? After all, Hulu clearly has the technology to detect the user’s location, in order to block users from outside the United States. It seems foolish not to expand into the larger international market. The answer lies within the nature of the content — copyrighted materials.

Hulu can offer streaming TV shows and movies within the United States primarily because Hulu is a joint venture of NBC, Fox and ABC, the three largest American broadcasting conglomerates. These giants own the American multimedia market. Be it production, promotion or distribution, they are in charge of it all. Streaming video delivery via the Internet is just one more route of distribution to generate income. Copyright issues are not a problem.

The same cannot be said for the rest of the world. For example, in Canada, the size of the media industry is a small fraction of our US counterpart. While we have some local TV shows and movie production, the majority of our prime time viewing comes from American shows.

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