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May 22, 2008 4:00 AM PDT

FAQ: What Microsoft's block of 'American Gladiators' teaches us

by Greg Sandoval
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Users of Windows Vista Media Centers who were blocked from recording two NBC shows last week are eager to learn why Microsoft is taking marching orders from broadcasters.

EFF's Danny O'Brien says digital-TV viewers must not lose the rights they owned as analog users.

(Credit: Greg Sandoval)

Microsoft is soon expected to explain why it inserted technology into its Vista operating system that blocked digital-TV viewers from recording their favorite shows. Their current excuse--that Microsoft adheres to regulations proposed by the Federal Communications Commission--makes little sense, as the only rules on controlling recording from broadcast TV were struck down by the courts in 2005.

The controversy began last week, when some Vista Media Center users trying to record from over-the-air digital or basic cable television discovered that they were barred from recording NBC TV shows American Gladiators and Medium.

In what for some was a stunning acknowledgment by Microsoft, the software maker said Windows Media Center honors the flags used by broadcasters to limit recording.

That triggered a wave of speculation. Some people asked if Hollywood had declared war on digital video recorders (DVRs). Some Windows users suspected Microsoft of possibly cutting financial deals with the studios. Others questioned whether a bug within Vista may have caused the block.

To this point, there are more questions than answers. We tried to address a few here.

Are cable and network TV companies trying to undermine the power of DVRs?
There is nothing to indicate that the blocking of the two NBC Universal shows represents some new attempt by the network or the entertainment industry to restrict the recording of over-the-air TV shows. In interviews with CNET News.com, executives of two DVR companies say broadcasters have not pressured them to limit recording--lately, at least.

"I'm not aware of any effort by the industry to prevent people from recording their shows," said Jim Denney, TiVo's vice president of product marketing. He qualified his answer by saying Hollywood doesn't attempt to restrict recording "outside of the regulations already in place, a la CableCard rules." We'll get to those rules later.

One important point to note is that broadcasters frequently block DVRs from recording TV content that isn't broadcast "over the air" (i.e. received by an aerial). Premium cable channels can prevent the recording of movies delivered via video-on-demand, or VOD. But what broadcasters haven't done before is to try to systematically block the recording of content delivered over analog channels or over-the-air digital.

That doesn't mean that they won't, according to Danny O'Brien, a staffer at the Electronic Frontier Foundation, which advocates for Internet users and has launched its own investigation into the NBC block. O'Brien notes that broadcasters have always felt threatened by TiVo and other devices that help viewers skip commercials.

"What the broadcasters and content owners have always wanted is a veto over new technologies," O'Brien said. "They want some way of controlling the powers of devices that they don't like. That's what the fight over the broadcast flag was about."

What is a broadcast flag?
The term "broadcast flag" has taken on several meanings, but it is best known for describing a set of proposals made by the FCC. The commission wanted those that made television software and hardware equipment to honor the flag, a code that broadcasters can insert into the data stream of digital-TV shows that typically place restrictions on the copying of shows.

The courts ruled against the FCC's plan in 2005, saying the regulator couldn't force electronics makers to interpret TV signals a certain way. Since then, those software and hardware companies have had the option of deciding whether to design their systems to obey the broadcasters' flags.

It's important to note that the flag rules were never meant to ban the recording of over-the-air digital broadcasts. They were designed to wall off content, and prevent mass reproduction and piracy. But Vista's remote copy control apparently goes much further and may forbid the recording of broadcast TV shows.

How many people could be affected by this issue?
About 30 million U.S. households are equipped with a DVR, according to research firm Leichtman Research Group. Forrester Research says about a third of the country's households own DVRs and predicts that the percentage will climb to 50 percent by 2010. That number is likely to rise rapidly after February 17, 2009, when all full-power U.S. broadcast television stations will switch from analog to digital broadcasts.

As for Window users, more than 140 million copies of the Vista operating system have been sold, Microsoft said last month. Both Vista Home Premium and Vista Ultimate contain Media Center, though a tuner is needed to record from TV.

What companies have acknowledged honoring copy controls?
It's unclear whether any other software or hardware makers follow a policy similar to Microsoft's.

O'Brien says companies that do "should come clean" and let consumers know that they could be buying a product that may limit their ability to record.

How do CableCard rules apply?
A CableCard is an interface that enables U.S. consumers to view and record digital cable TV. It allows people to bypass set-top boxes and watch cable broadcasts on DVRs, computers, and TV sets, provided that they have been sanctioned by CableLabs.

CableLabs, a consortium created by the cable industry, must certify all CableCards. Microsoft's Vista operating system supports CableCards, and this can effectively turn a sanctioned PC into a DVR.

CableLabs require CableCard-equipped devices to come with DRM and adhere to commands from broadcasters. Those commands include "copy never," "copy once," and "copy freely." Typically, consumers bump into these flags only when trying to record video-on-demand or pay-per-view programming from premium cable channels. VOD is often protected with a "copy never" or "copy once" command.

To date, it is unclear whether any broadcaster has intentionally tried to use the "copy never" or "copy once" commands to limit recordings from over-the-air digital or basic cable. It's safe to say the practice isn't common. But EFF says the block of American Gladiators proves that it can be done, and O'Brien expects that broadcasters will be under pressure to try it in the future.

Do DVR owners have any rights?
You bet. "You have a fair-use right to record TV content, as specified by the Supreme Court in the now-famous Betamax case," O'Brien said.

"The important thing to remember," he added, "is that digital-TV viewers must not lose any of the rights they owned as analog users."

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
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Add a Comment (Log in or register) Showing 1 of 2 pages (35 Comments)
by yelocab May 22, 2008 6:04 AM PDT
I don't know why broadcasters would be so anti-DVR. The purpose of _my_ TiVo is to allow me to watch many more shows than I normally would, and I suspect many DVR owners are more interested in time-shifting rather than commerical-skipping. Commerical-skipping is an unfortunate side-effect, but even before DVRs, people would take bathroom breaks, go to the kitchen, have conversations, etc. while the commercials played. And even when I do skip the commericials, I am actually just fast-forwarding through them--many which I have seen before ("oh, there's that coke commerical again, oh there's that cheesy local car dealership ad, oh there's that funny Ikea ad, etc."). And sometimes I do stop to watch a commerical I am intereseted in seeing.
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by njpeeke May 22, 2008 6:23 AM PDT
First: Microsoft your next update to Vista should remove this capability, don't get thrown to the wolves if you don't have to. Next: To fellow consumers this is why I am trying to hold back on getting digital signals and keeping analog to my home for as long as possible. First the stories about cable companies compressing their HD signals so they can fit three shows in an area that used to be two. Now they have the "Broadcast Flag" that will keep DVRs from recording. I realize that this only happened to two shows and it was probably just an accident, or a test, but it shows what the broadcast companies are capable of. If it wasn't for sports I'd cut the cable today.
Reply to this comment
by ittesi259 May 22, 2008 7:44 AM PDT
For Microsoft to do what you are saying would require Microsoft to ditch all support for CableCard technology if you didn't catch that in the article. All CableCards and their devices must be certified, and Vista won't be if they do that.
by yacahuma May 22, 2008 6:24 AM PDT
yelocab , I couldnt agree more, you are right on the money. I will add that the more people try to control me the more I resit. I will watch whatever I want to watch, and skip whatever I want to skip. With our busy live I only watch tv after 11:00pm. If I did not have my DVR I simply do not watch any tv whatsoever. My only entertainment will be my PS3 and blueray movies.

Also, Microsoft just keep demonstrating that they are simply a company not to be trusted. They just dont get it anymore.
Reply to this comment
by Lerianis May 22, 2008 11:22 AM PDT
Microsoft has NOT demonstrated that they are a company not to be trusted. If you would go onto their website, and look.... they warned EVERYONE that Vista adhered to the broadcast flags on their website in the technical documentation.
Everyone 'in the know' had to have known that this functionality was in Windows Media Center in Vista.... so why didn't they bring this up LOOOOOONG ago when Microsoft was first saying they were going to put this functionality in because their arms were being twisted by the content providers?
by dferreira May 22, 2008 6:43 AM PDT
In a time when the broadcast networks are losing viewers to literally every other choice out there (cable networks, the Internet, DVD's), to do something this incredibly short-sighted is astounding. You know, on second thought, it really isn't. Putting crap on TV like American Gladiators and expecting viewship to soar - that's astounding. Maybe blocking DVR's from recording it is not such a bad thing. Unless you accidentally watch it live, you won't be able to see it, which some might consider a public service. Regardless, NBC, go ahead and continue to block my fair-use rights even with crappy programs and I just won't watch any shows on your network. Not like I don't have a choice anymore - and with shows like these, not like I will be missing anything either...
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by Lerianis May 22, 2008 11:20 AM PDT
Hey, American Gladiators was a VERY popular show 10-15 years ago. I watched it a LOT when I was a child, and watched repeat episodes.
by stevicus May 22, 2008 6:46 AM PDT
mythtv anyone?
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by tephelan May 22, 2008 7:04 AM PDT
Mythtv on Linux. Yes, that is the way to go. No DRM or Broadcast flags.
Reply to this comment
by DrtyDogg May 24, 2008 8:33 AM PDT
And no cablecard support
by russkeller May 22, 2008 7:43 AM PDT
And everyone said that kid from New Zeland was out of line. Turns out he was right.
Reply to this comment
by Maccess May 22, 2008 7:48 AM PDT
Does anyone remember Digital Audio Tape? That digital format that was so encumbered by DRM, that not too many people wanted it?
Reply to this comment
by James_U May 22, 2008 7:57 AM PDT
Very shortsighted and silly by broadcasters. MSFT should definitely remove this. They would be alone in supporting this as competing products like SageTV, BeyondTV and a slew of others allow you to record whatever you'd like just like DVRs and VCRs do.
Reply to this comment
by Lerianis May 22, 2008 11:23 AM PDT
Don't bet on it. Some DVR's also adhere to these broadcast flags.
by NURREDIN May 22, 2008 8:21 AM PDT
Who the heck cares? Americans watch too much B.S. on tv anyway.Our country's going down the tubes and we're worried about not copying some moronic tv shows? GET A LIFE, and get your butts off the sofa! I'd be willing to bet there are more idiots concerned about this than who gets elected President! Rome is burning, but you watched American Idol right?
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by b8375629 May 26, 2008 7:12 AM PDT
That's right. Now why don't you go be a good little boy and go take a chill pill, k?
by Dr_Zinj May 22, 2008 8:36 AM PDT
The use of any technology by a television company in conjunction with DRM software to prevent the recording of a program is the act of blatant fools. Any executive who actually employed such technology should be immediate fired from his position, with cause, and blacklisted from the entertainment feild.

Telling your customers, who all have busy lives that make scheduling to someone else's requirements a near impossibility, that they can only watch a show when the station feels like showing it is the same as telling them that they can't watch it. And if you're telling your viewers they can't watch your shows, then you're an idiot. The company will go bankrupt and stockholders in those companies are going to lose their shirts.
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by wolivere May 22, 2008 9:07 AM PDT
Umm... if I rember correctly this is exactly how the system has run from the 40's through to most of today.

If I rember that is why most stations run shows in varying time slots. Now in many cases some broadcasters offer an OnDeman feature *for a cost* that allows you to do this.

Now in the past when you bought tape or recored shows, in the past you fell under. http://www4.law.cornell.edu/uscode/17/1004.html

So you still paid at least $1.00 of your VHS tape cost towards the recording.

Even with Tivo you pay a fee, since TIVO is paying it on your behalf.

Open source? I'm sure the system will catch up the loop holes.

But like I said the Big 3 over the past 60 years had no issues with making money and keeping people happy.

Its todays new belief that everythign should be free and when I want it.
by wolivere May 22, 2008 8:59 AM PDT
Playing devils advocate here.

I would assume there are many reasons for this.

In the past when it was over the air, so we are talking the 70's here, the income for TV channels was advertising. In the Mid - late 70's most households did not have VCR's so recording was not a huge issue. As Tape became more common, a TAX was placed on these tapes to cover costs to broadcasters. Similar ot the TAX on Audio casettes. We as the end user never saw this since it was already built into the price. It was anywhere from 3% to 10% was on the blank material as well as the recorder.

So the fact you recorded and later skipped commercials..etc.. made up for any commercial fee's.

This continued with DVD' CD...etc..etc. Since typically you could figure a value of tax based on length of the recording.

DVR's change the playing field. How do you collect levies? How do you set a levie?

Now we can argue that the Cable companies make enough money out of the fee's they charge us so we should have it for free?

So we are jumping into the assumption that we should own the rights to replay content just becuase we pay a charge for content delivery.

I am going to assume then that these companies want to control what content is free for people to watch, and what they believe has a finacial impact on them.

The one thing I am bemused about over the past 7-10 years is the "Free" concept. Every one believes it should be free, movies, TV, Music.

In this model how do people make up for the loss of income? Directed advertising? Well that goes out the window when you can bypass it. Advertisers will work on other methods of getting your attention.

So beyond the Vista/DVR issue. I have to ask people? How do they expect artists and broadcasters to earn money?
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by superswiss May 22, 2008 10:52 AM PDT
I have no problem with paying for content. I subscribe to HBO for example. But even with HBO rerunning movies quite frequently, their schedule still doesn't line up with mine. And if I have to go to the bathroom, I can't call HBO and ask them to pause the movie until I get back. That's where DVRs add the value. If I want to watch a movie over 3 days or 2 months after it aired I can do that and I'm not taking away any revenue from HBO. I'm still playing my subscription.

As for commercial skipping. Here's the message I have for US broadcasters. Make them more relevant and interesting and people might watch them. I mean what's the point of those "Ask your doctor about <fill in the black>..." commercials where they can't even tell what the drug is for. 99% of products that are advertised I will never buy and those that I buy, I already know about. I mean how many more times do I need to see a Coke commercial? Really, I'm not gonna buy more coke.

All we are asking broadcaster is to rethink their business model instead of trying to fight technology. DVRs came about, because people were so completley fed up with living by the broadcasters schedule and watch stupid non-relevant commercials. I mean before the DVR I changed channels when commercials came on or I went do something else. DVRs actually improve the quality of TV.
by sal-magnone May 22, 2008 10:27 AM PDT
Yeah I think we are going to see allot more of this before anything changes. Legal entities that can be found and sued are probably not going to have much choice until a legal challenge settles everything.

Interesting, because it puts open source projects in the driver's seat for strictly legal reasons.
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by bunkey91405 May 22, 2008 10:44 AM PDT
I said, before, that Vista with its heavy DRM was a "sellout" to the copyright media content holders, record labels, movie, TV studios, so Microsoft could market the WiFi Zune media player. This current incident reveals the close working relationship MS still is having with them and how all parties want to break copyright fair use for us. Profits from selling the same media for different formats or use, so the buyer has limited or no fair use capability is clearly the goal. Our response should be not to buy the limited products, they want us to buy and buy again.
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by wolivere May 22, 2008 10:59 AM PDT
"DRM was a "sellout" to the copyright media content holders, record labels, movie, TV studios,"

I really don't undertand this method of thinking. Say you have an farm? you grow plants that you sell to people. Every year you loose some money to people who wander in at night or when you are not looking and "steal" your product.

You build this into your cost model, and you continue to sell albeit at a higher price.

Now people have greater access to your farm since a new highway went up, and your quality of produce is well know.

You now find more and more people are running into your field, and stealing your product. So you jake the price up. Now its getting to the point that people are actually setting up groups to come and get your produce. They love it the stuff is great and all you need to do is run down that ditch and fill up your bag. Take it home share it with friends..etc..etc.

You finally petition your local government to put some sort of fence between you and the highway so all these people will stop stealing your produce.

So the people cry out how can the governement put up a fence in a public ditch to block access to a private field? We have the right to be in that ditch.

So no fence goes up, and a few years later people come buy and watch the bank auction at the farm. The field goes back to wildflower, and now they have to pay a higher price for a lower quality product in there store.
by mmntech May 22, 2008 11:17 AM PDT
I agree with most of the other comments that this is foolish. Then again, there's a good reason why NBC is fourth place in the ratings. It also exposes major holes in the DMCA that allow content providers to abuse rights of consumers that fell under fair use during the analogue age. Despite the 2005 court ruling, provisions for a broadcast flag still exist. Just because there's no law forcing them to do it, content providers still put back room pressure on hardware manufacturers to implement these procedures. Either through financial incentives or more strong arm tactics.
To counter Wolivere's argument, the reason a tax doesn't work is that it spends government resources to reward a private group with funds that it may not deserve. It assumes they've lost sales when they may not have or may never have made otherwise. As with subsidies for other industries such as auto making, it simply ends up encouraging bad business decisions. It's corporate welfare. Also worth noting that TV is unlike other media in that it is free, over-the-air, and this is where the issue with Vista comes in. Fast forwarding through commercials is not the same as blocking people from recording shows for the purpose of timeshifting. If that were the problem, why not just block fast forwarding? The real reason is the proliferation of episodes for sale on sites like iTunes where people now have to pay for stuff that was once free aside from your cable bill. If you bring that into consideration, the broadcast flag makes sense, at least to content providers.
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by Lerianis May 22, 2008 11:30 AM PDT
Exactly right. They use strong arm tactics which even a big company like Microsoft cannot withstand.
Really, it is simply time to tell television content makers that they cannot charge for episodes online, because they are ALREADY being paid for them out of cable and satellite revenues, and are getting their 'fair share' of profit.
by wolivere May 22, 2008 11:44 AM PDT
Your correct fair use existed under the analog age due to the ability to levy a hidden fee on the materials and devices used to record the product.

Even though when you bought a VHS tape and maybe recored multiple times over that tape. A minimum $1 from the purchase of that tape was recaptured in a levy, and if your VCR was lets say in the $100 $300 range anywhere from $10-$30 was captured from that in a levy fee.

So you had fair use but you still actually paid some form of fee.
by Lerianis May 22, 2008 11:19 AM PDT
While I am not happy at Microsoft for including this functionality in Windows Media Center..... their arms at the time were being SERIOUSLY twisted by the content owners who were telling them "Even though the courts said that the FCC had no authority to do this, we want you to put broadcast flag tech into your Vista operating system! If you don't, we are going to cut you out of every single deal we have!"
Microsoft didn't really have a choice in the matter and now that it is out in the open, they are getting support from the community who don't like this...... they might finally update and REMOVE this functionality from Media Center.
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by gconnery May 22, 2008 11:34 AM PDT
Not too impressed with this post actually. Seems like a little more digging would have been useful.

There have been NUMEROUS cases where people were prevented from recording TV shows on Tivos. In all cases so far this was on cable, and the bits were set by the local cable provider, sometimes in error. Sometimes people managed to get the cable provider to fix this, sometimes not. You can find a lot of discussion of this on the tivocommunity forums.

Agreed that this case is different, in that it is the first verified case of over the air prevention. NBC says the bits were set "in error". Not sure what that means, but a little more digging would be useful. Presumably the EFF will do this.

Yes any device that is verified as obeying such flags should be considered less useful and capable than any device that doesn't. So Microsoft's Media Center software (unfortunately the only choice if you want to use cable card) is not as good as MythTV and others. And cable reception isn't as good as analog ATSC. And ATSC isn't as good as analog. But even analog has ways of flagging content using the old line 21 tricks MacroMedia has defined...
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by wolivere May 22, 2008 12:02 PM PDT
There are so many holes in this story. First off, the court rulled on Broadcast flag.

"The court stated that the Commission could not prohibit the manufacture of computer or video hardware without copy protection technology because the FCC only has authority to regulate communications, not devices that receive communications."

What does this mean? It means the FCC does not have the right to block the manufacture of computer hardware that does not have the abiity to see this flag.

They do have the right though to regulate the communication to said device. So toss out all this they can't do it the broadcasters can do it. (period)

You also need to read Fair USE

"Notwithstanding the provisions of sections § 106 and § 106A, the fair use of a copyrighted work, including such use by reproduction in copies or phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright. In determining whether the use made of a work in any particular case is a fair use the factors to be considered shall include:

the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes;
the nature of the copyrighted work;
the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and
the effect of the use upon the potential market for or value of the copyrighted work.
The fact that a work is unpublished shall not itself bar a finding of fair use if such "
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by SpiritMatter May 22, 2008 2:49 PM PDT
What we need is someone with the independence (DivX?) and the balls (????) to put out a piece of ATSC tuner capture software that can capture the 720p or 1080i HD MPEG2 stream and convert it or up convert it to 1920x1080p resolution DivX, VC-1 or H.264/AVC. The software should also have the ability to read all the info in the transport stream such as the broadcast flag and display it to the consumer. The consumer will go to whatever source gives them the most control. As consumers, most of us have no problem with paying for creative work based on a combination of its? value to the consumer, the creator and the vendor.
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by farmer-dave May 22, 2008 3:56 PM PDT
NEWS FLASH! AT&T's U-verse service now does the same thing for ALL Pay Cable channels (HBO, Showtime, Starz, Cinemax, etc.). Since their DVR is integrated with their IP-TV service, there's no way around it. I'm trying to decide if that's a reason to switch.

Probably not, since I only watch/record those channels when they have a "free preview".
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