2021年5月11日 星期二

On Tech: Why is new TV so much like cable?

The standard business practices developing around streaming entertainment are rotten.

Why is new TV so much like cable?

Brenna Murphy

There are constant fights among powerful digital companies over what streaming video apps appear on our living room TV sets. It shows how the overlords of new TV are falling into the same bad habits as old TV.

Let me explain why fights over money, power and our personal information are popping up all over streaming entertainment, and how we're caught in the middle.

One root of the problem is that the streaming TV app systems such as Amazon's Fire TV and Roku work almost exactly like cable television and not like smartphone apps. (Wasn't streaming supposed to free us from the annoyances of cable TV?)

I want us to remember one thing: Streaming entertainment is great in so many ways, but the standard business practices that are developing around it are rotten. It's turning what should be the simple pleasure of watching TV into an ugly mess.

For exhibit A, I point you to the recent squabbling between Google's YouTube and Roku, which makes gadgets to connect TV sets to online video apps. Their beef is complicated, but the result was that Roku threatened to block one of YouTube's apps, and Google threatened to send free alternative streaming gadgets to Roku customers. Each side said the other was a bully.

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A version of this fight keeps happening. When Amazon and the owner of HBO bickered over money and control of data on people's watching habits, people for months couldn't watch HBO Max on Amazon's Fire TV streaming video device or through Amazon's Prime Video app. The same thing almost happened in a dispute between NBC's Peacock video service and Roku.

The wild thing is just how familiar this feels. The beefs and temporary blackouts of programming are exactly how old TV has worked for decades. Cable TV, and now the new TV app stores, have no standard terms, so everything is a hard-fought negotiation.

Think about it: ESPN is in your cable lineup because of a complicated contract hammered out every few years between the channel's owner, Walt Disney, and Comcast or another provider. If the two sides reach a contract impasse, college football might disappear from your TV for awhile. Repeat that for every single channel on the dial.

As with cable TV, Amazon, Roku and their peers often reach individual contracts with streaming services after negotiations over fees the streaming app might pay, whether Amazon or Roku get to show commercials in another company's video app or minute aspects of how a streaming app functions.

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It's hand-to-hand combat with each TV app. Just like with cable TV, the company with the toughest lawyers or the most power often wins.

This isn't how smartphone app stores work. Apple and Google set terms that (usually) apply equally to all apps, rather than one-by-one agreements. App makers comply with those terms and rules or get out.

Yes, there are serious downsides to that system. App makers and regulators complain that it gives Apple and Google near total control over our digital lives. But the benefit of making the same rules for every app is it reduces the constant fighting.

We don't need more capricious dictators, but maybe streaming services and TV apps could take a lesson from the one-size-fits-all rules of smartphone app stores.

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Another idea: Maybe we should make our TVs dumber by ditching apps entirely. Would we be better off if TVs didn't have app stores at all, but were just web browsers on our TV sets?

Or what if they all used technology like Apple's AirPlay to mirror our smartphones on a bigger TV screen? Instead of firing up the Netflix or Peacock app on our TV or set top box, we'd use the app on our phone and the image would automatically appear on our TV. This might be clunky. And when I've spoken to experts in streaming video technology, some of them have said this would reduce the video quality that people expect on TV screens.

But you can see what I'm struggling with. I don't want to fossilize the bad old ways of cable TV in what should be our brand-new world of entertainment.

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Before we go …

Hugs to this

Gritty, the VERY WEIRD mascot of the Philadelphia Flyers hockey team, is the stupid fun we all need. In response to fan challenges, Gritty did an interpretive dance while holding a Jell-O mold, jousted in an office chair and watched "Rocky II" while sitting in a kiddie pool filled with soft pretzels.

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What a blue state really gets wrong

California here we go.
Author Headshot

By Paul Krugman

Opinion Columnist

I've always found Ron Brownstein, political analyst for The Atlantic, well worth reading. But I didn't expect him to come out with "Rock Me on the Water," a portrait of Los Angeles in 1974 — a time and place he argues were pivotal in creating our cultural landscape. I have no idea whether he's right, and it hardly matters: the book is great fun.

Me being who I am, however, while reading the book I found myself thinking about … the relationship between California's culture and its economy. What made the golden age of L.A. culture possible, and how have things changed since then?

There clearly was a remarkable collection of artists of various kinds in L.A. from the mid-60s into the 70s. There was, in particular, a cohesive musical scene — famous or soon-to-be-famous musicians who were constantly in and out of each other's houses — documented in the movie "Echo in the Canyon." The music they created remains a source of inspiration and comfort to this day.

If you know much about contemporary L.A., however, these stories raise an immediate question: How, exactly, were not-yet-established artists able to afford houses there?

The answer is that back then California real estate was much, much cheaper than it is now. Here's the price of houses in Los Angeles County adjusted for inflation since 1975, together with the same number for Dallas County (of which more shortly):

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You can check out any time you like, but you can't afford to come back.FRED

Real L.A. housing prices have tripled since the days Brownstein celebrates. Affordable housing doesn't by itself create a cultural efflorescence, but it's probably a necessary condition.

The phenomenon of high real estate prices undermining cultural vibrancy is hardly unique to L.A.; it has happened many times in many places. It's reportedly happening in Berlin as we speak.

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But culture isn't the only or, arguably, the main issue. What about making it possible for ordinary people to live decent lives?

So let's talk about politics, housing and the California economy.

Once upon a time California was a hotbed of conservatism. But rising ethnic diversity and the growing alienation of highly educated voters from an anti-intellectual G.O.P. eventually led not just to Democratic dominance, but to progressive dominance. If President Biden's agenda succeeds, we'll probably look to Jerry Brown's reign as California governor — with large tax increases for the wealthy and an expansion of social programs — as the proving ground for Democrats' left turn.

When Brown raised taxes in 2012, conservatives predicted disaster, some going so far as to declare that the state was committing "economic suicide." In fact, job growth boomed, while revenues soared; Governor Gavin Newsom just announced that the state will run a $75 billion (!!!) budget surplus.

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California also enthusiastically implemented Obamacare, cutting the uninsured population by more than half.

But despite what looks like prosperity, population growth in the formerly dynamic state has stalled. Why?

Well, it turns out not to be affluent, highly educated residents fleeing those "job-killing taxes." People like that are still moving in. Instead, lower-income and lower-education residents are leaving, probably because housing is so unaffordable.

It didn't have to be that way. Texas has a rapidly growing population, the way California used to. But as the chart above shows, Texas housing prices haven't risen much at all in real terms. And the reason is obvious: Texas doesn't have California-type restrictions that effectively prevent the construction of much new housing. And that, um, liberal housing policy, not low taxes, is the big explanation of Texas's relative success.

Which brings me to the bottom line here. What California's example shows is that tax rates on the rich have much less adverse effect on incentives than conservatives would like you to believe. But while blue states can do fine while raising money from the rich, they do a lot of harm by preventing the construction of new housing for ordinary people.

Quick Hits

Why Texas is moving right even as Dem-leaning groups move in.

Expensive housing increases poverty.

New York also had an affordable music scene in the 70s — when the economy was a disaster.

Fast trains kill the places in between.

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If you're enjoying what you're reading, please consider recommending it to friends. They can sign up here. If you want to share your thoughts on an item in this week's newsletter or on the newsletter in general, please email me at krugman-newsletter@nytimes.com.

Facing the Music

Some music still moving to LAYouTube

A favorite Brooklyn band — but they moved to LA!

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