Tuesday, December 21, 2010

FCC poised to adopt network neutrality rules

It seems that the support has been found to pass the FCC rules on net neutrality, providing equal streaming access to all. "More than a year after FCC Chairman Julius Genachowski pledged to put in place so-called "network neutrality" regulations, the agency is poised to adopt those rules at a meeting on Tuesday." And while it seems black and white, these new rules may indeed still contain areas of gray. Will internet providers find the loopholes to work around the rules? And will the courts come in and be forced to rule on its constitutionality? Ultimately, the rules are meant to provide a level playing field for all content and lower the barriers for other companies to stream competitive content online. Good news for Netflix and Google? A new competitive landscape is certainly forming.

Hulu IPO On Hold

Is Hulu having troubles? Concerned about going public perhaps and opening up the books? Afraid that the model isn't working? Certainly lots of questions, but no answers. Only that the IPO may be off the table. "Online video site Hulu LLC has taken off the table the idea of going public, at least for now, and may consider other financing options, people familiar with the matter said." But will these owners agree to invest more of their money into this venture?

One wonders how well the premium subscription model is working. "Some consumers have complained that the Hulu Plus selection remains limited, and the company already cut its monthly price to $7.99 from $9.99 during the preview period. Many of Hulu's investors have been pushing it to consider other paid models that could help them earn more money from their content." Can more money be made licensing their product to companies like Netflix? Perhaps online is the new syndication model.