Internet with Borders: Hulu, ABC, FOX Streaming Only In The US

After a week in Paris for LeWeb, I'm now in Israel. In between business meetings, teaching a class, and spending time with family, I needed a bit of a break. These days, I'm a bit addicted to Fringe but can also get easily entertained by Eli Stone or Ugly Betty.  With internet connection in full force, I pulled my bookmarked Fox's website and clicked on the Fringe full episode. But instead of the usual loading screen, I got this:

 

That's strange. But no matter. On we go to Hulu. I seriously dislike Hulu's interface and user experience--it's one of the worst site designs I've seen (just look at the zigzagged left to right episode order)--but as long as my show's here, I'm pretty chill. But alas. Hulu too cannot allow people outside the US to view its shows and it says so (a bit more nicely than FOX) here:

Hulu provides a link to more information. This leads to a Q&A that says this:

I checked ABC too--neither networks allow streaming outside the US. According to Hulu's information it's due to regulations and licensing.

I'm not sure how these things work but I find it utterly ludicrous. Don't you?
I mean, isn't the internet open to all--at least in the modern world? And isn't streaming TV free? Sweeping regional restrictions are usually due to government involvement--such as in China...but the US?!?

So bottom line is that is has to do with monetization and scale.  If you cannot be a potential buyer, TV is not free for you. Sorry. It just costs too much to stream and it's complicated enough working with product companies and ad agencies in the US, not to mention across geographies.

But there are also missed opportunities, First, US residents who travel and want access to US TV: small niche but most likely with big spending power--completely shut out. Second,  brand awareness and establishment in growing demographics can have great returns--just take Asia's fast-growing urban areas and the rich middle class: People pay significant premiums to enjoy Western brands. In Europe, people use their smartphones and internet for much more than we do in the US.

Moreover, when extending outside the US, the networks can exercise their leverage and grow their revenue model in creative ways--just think how much more Americans spend on a Starbucks coffee in Vienna or how coveted Japan's Burberry Blue Lable has become around the world.

I'm wondering if by the next trip I take the networks and Hulu will figure out a way. I wouldn't mind paying a few bucks for access when abroad (since I don't drink Starbucks anywhere). Or maybe I'll just spend my money on a Sling box. Better yet--perhaps by next year a couple of girls just out of high-school will figure out a way to provide an automated way for ad publishers to take advantage of the streaming TV audience wherever they are.

Comments

[Shahar Nechmad]

The problem of opening these sites to outside of the US is that many countries still didn't air these episodes on TV.
By opening the sites, the networks will lose all the money that the international networks pay them as royalties for broadcasting the shows.

Now, you can claim that people will download the shows anyway via torrents and that the networks can monetize the shows with international wed ad networks. But... in many countries the CPM rates are still very small (Israel is a great example). Add to that the fact that you don't have subtitles which is important feature for many people, and you get the picture why opening up these sites doesn't happen.

So what's the solution?
Selling the rights for the international TV networks to post the videos on their own sites after they broadcast them on TV...
I'm sure it's just a matter of time until such a thing will happen.