Hulu and Delve Networks: We Still <3 Flash

…HTML5? Not so much…

In a move certain to cause much gleeful cackling and dry-washing of hands at Adobe HQ, Hulu and Delve announced that they are sticking with Flash, rather than making the Jobs-mandated move to HTML5.

The money graf from Delve:

Adobe Flash provides: ability to secure content, adaptive bitrate streaming, comprehensive

analytics and monetization of video through a wide array of advertising

options. Customers that are using our mobile delivery solution are

willing to experiment with video on these new devices to figure out what

works and to keep their existing customers happy. But they all expect

that eventually the mobile/tablet features match that of the Flash

player on the PC.

Hulu said:

When it comes to technology, our only guiding principle is to best serve

the needs of all of our key customers: our viewers, our content

partners who license programs to us, our advertisers, and each other. We

continue to monitor developments on HTML5, but as of now it doesn’t yet

meet all of our customers’ needs. Our player doesn’t just simply stream

video, it must also secure the content, handle reporting for our

advertisers, render the video using a high performance codec to ensure

premium visual quality, communicate back with the server to determine

how long to buffer and what bitrate to stream, and dozens of other

things that aren’t necessarily visible to the end user. Not all video

sites have these needs, but for our business these are all important and

often contractual requirements.

Behind these two statements, back in the misty shadows, loom the outlines of the Hollywood studios and TV networks. I’m guessing the last couple of weeks have seen lots of closed-door meetings about what happens when we all start watching TV & movies on our iPad(-like) devices.

The problem with just abandoning responsibility letting the Apple empire do all the driving is that, as we have seen in the last couple of months, Apple’s hidden face is starting to emerge. And it ain’t pretty. Allowing Apple to control the flow of content through its ever-expaning iTunes store just means that you’ve given up the pricing and distribution power on your creative products.

Ask the music industry guys how that worked out for them.

If you can find any, that is.

So let’s take a look at the objection of the big video players to Apple’s vision of the future:

1. Content security. If you don’t think that the movie & TV guys have been sweating blood over the nightmare scenario of their business model going the way of CDs, think again. For the last five years, I’ve been going to tech conferences in and around LA, and at each and every one, the most popular booths are the ones touting various DRM/security features. Now, publishers such as O’Reilly may hold that “DRM is more costly than piracy”, but in the executive suites at the studios, that is a minority view.

You just can’t make a business out of producing $200 million movies like Iron Man 2, and then hope to recoup your costs by giving away the content, and hoping … ads will support it? Or that you will sell enough merch through wider audience? Nuh-uh.

Adobe and the Flash team have spent years banging on various content-security technologies, some of which tout NSA-level encryption schemes to try to mollify the big content creators. I’m guessing there’s not much love for Apple’s “blind faith” scenario with HTML5.

2. Adaptive bitrate streaming. Sounds like something a character played by Dan Aykroyd in his heyday would have spat out in staccato fashion. Basically, it means that when the web is congested (or your bus travels between a couple of skyscrapers as you watch video on your Droidphone), the video will momentarily de-res a bit until the signal is once again clear.  We’ve found that having a momentarily blurry(ier) video is far less disruptive to the viewer than having fits, starts, jumps and the little hourglass on the screen.

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