In another token of the corporation’s respect for the ‘net, they have decided to end a feud with Apple over their shows being offered through the iTunes store. Initially, Apple would not let NBCU charge the prices they wanted to for some episodes of certain shows, exceeding the $1.99 iTunes limit, but they have reached an agreement that will put NBCU programming back in the catalog.

NBCU President and CEO Jeff Zucker knows that his company was missing out on some money by not offering iTunes downloads. Even though much of the content is available for free streaming via Hulu, there are still going to be plenty of people downloading shows for keeps. "And now, by offering consumers a variety of new options, our fans have even more ways to enjoy our content," he says.

The deal is certainly good for Apple as well as NBCU has some pretty big hits like "The Office" and "Battlestar Galactica" to name a couple. "We are thrilled that NBC is back on iTunes in time for the Fall TV season," said Steve Jobs, Apple’s CEO. "NBC has some of TV’s most popular shows and now customers can purchase and download them from iTunes in SD or stunning HD."

Those HD shows will cost $2.99 by the way, which is a higher price than Apple initially would have preferred, and likely factored into NBCU’s descision to go back to iTunes. NBCU will be offering old shows for as little as $0.99 though. So if you are craving some Sonny Crockett or Bosco Baracus adventures, you won’t have to break your bank. Of course you could just go to Hulu and watch some for free.

However, as the AP reports, there is some uncertainty there:

It wasn’t immediately clear how the new rules would affect YouTube and other providers of Internet video that host Web sites available in China but are based in other countries.

While it sounds pretty clear cut, the AP says that the real question is whether YouTube has any servers located in China. I’m not exactly sure how that squares with the definition of the regulations, which state that “Web sites that provide video programming or allow users to upload video must obtain government permits and applicants must be either state-owned or state-controlled companies.” The policy will take effect at the end of this month.

It looks like it’s becoming increasingly difficult for US-based companies, especially Internet companies, to comply with the demands of the Chinese government. And that might just be the intent. The rules state:

Those who provide Internet video services should insist on serving the people, serve socialism … and abide by the moral code of socialism.

To Americans, however, the new regulations look more like they’re serving the Chinese government, instead of the Chinese people, considering they include provisions to:

The policy will ban providers from broadcasting video that involves national secrets, hurts the reputation of China, disrupts social stability or promotes pornography. Providers will be required to delete and report such content.

Seems odd to me, at least, that a site like YouTube, which has long been all about people, may now be cut off entirely for not “serving the people.”

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"Since this category first emerged in 2004-2005 with the debut of Akimbo’s public Internet VOD product, vendors of these products have struggled with a number of hurdles that have so far made this market relatively unsuccessful," says research director Michael Wolf. "

"The high cost of these devices, their reliance on the home network, the need for consumer self-installation, and the scarcity of content have all contributed to their lack of commercial success."

ABI believes things could change next year and that devices like Apple TV will see shipments of 1.2 million in 2008. ABI says that the increased availability of content should help the market grow along with high definition films available online and the demand for user generated content.

Wolf says, "We believe that there is a possibility of a break-out success among these new entrants if they can create compelling content offerings, make consumer installation and management incredibly easy, and offer both the hardware and content at compelling pricing. We believe one way to achieve this is by incorporating some premium content using advertising support."
 

U.S. viewers on average will spend about two more hours per week watching television by 2012, due to growth in video-on-demand selections and the use of digital video recorders. During that same time period, Internet use away from work is estimated to increase by under half an hour per week.

David Sanderson, head of Bain’s global media practice. Said that for Internet video to gain traction against broadcast, cable or satellite signals into viewer’s home could take as long as five years to happen. "There are capacity constraints, the technology isn’t quite there … and frankly the business models for the content owners, all of that still needs to be worked out," Sanderson said at the Reuters Media Summit in New York.

"Until that’s worked out and until the Internet can deliver that same experience, then it’s still going to be delivered over the traditional multichannel video providers," he said.

Sanderson said the Internet will become a more solid outlet for video in the future and that viewers today are mainly using it to watch videos of programs they missed on TV.

"People are spending time watching YouTube videos, but the amount of time they’re spending isalmost negligible relative to the time they’re spending watching professionally generated television," Sanderson said.

In September, Fox News tapped Maven for its Internet TV technology. Major news publisher Gannett has followed suit, Maven announced today.

Gannett will use Maven to deliver ad-supported news video on its various news sites. Their audience should be in the neighborhood of 22 million visitors per month, which according to Nielsen//NetRatings was 14.3 percent of the total US Internet audience in October.

"Our Information Center approach to news and information relies on multimedia, and video is a key element of our news and information offerings on all our Web sites – whether they are related to our newspapers or TV stations," Gannett Digital president Jack Williams said in a statement.

The key to success will be the advertising Maven can enable Gannett to deliver. A variety of customization options for the Maven media player can make it resemble the look and feel of various Gannett properties.

Advertisements can receive similar treatment, a feature Gannett certainly will promote as the company pitches big-name brands and other advertisers as Maven unfolds across its properties.

A Maven spokesperson said the technology should be available on USAToday.com in the first quarter of 2008.

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The survey of online consumers found that 12 percent had purchased some form of video content delivered over the Internet. Out of those, the majority (71%) watched video on their PCs, while 16 percent watched it on a TV using a burned DVD. Another 8 percent watched it using a game console.

ABI Research director Michael Wolf said, "Over the next few years new solutions from the likes of Apple, Netgear, and Sony will help cross this divide, making a la carte video download and viewing much easier."

"That doesn’t mean this transition will be an easy one: factors such as video quality, pricing of content, and technical glitches will persist for some time."

ABI predicts that out of all the options to watch online video that game consoles will lead in total revenue. The reason for this is that game consoles are close to the TV, have large hard drives, and a high penetration of online services among gamers.

Wolf concludes, "ABI Research believes that while Internet video delivery services for TV playback such as gaming consoles are only beginning to see public adoption, these devices, as well as products such as Apple TV, will ultimately create significant pay-content revenue opportunities if consumer platform vendors can provide easy-to-use solutions with good quality and large libraries, while offering attractive pricing options, whether subscription, download-to-own, or rental."