Veoh.com say it’s just making online video easier for users to access. But major content providers, such as NBC and Fox, aren’t convinced that VeohTV is a fair and equitable way for its TV shows to be screened to the masses.

It’s an interesting dilemma. VeohTV, by its own definition, is a “virtual television network”. Basically it collates third party video content and re-transmits the shows within its own branded web browser-like software application – all with the genuine intent of making web TV more accessible. (Check out this post for an excellent description).

The VeohTV software, which is still in a beta testing phase not available to the public, currently has 114 easy to navigate channels. The contentious issue is that most, if not all, of the content on these channels is showcased without the permission of the content provider.

The Argument For and Against

Dmitry Shapiro, Veoh Network’s CEO, is convincing with his spin that VeohTV is benefiting the content providers through exposing them to a new audience. The content is freely available already on the internet after all, he argues. He also raises the point that the content is shown exactly as it appears at the source – including any advertisements.

Large networks like NBC aren’t buying it though (or selling it, incidentally!). Even though users would be watching the same content, VeohTV would reduce the number of visitors to NBC.com, figures NBC.

This means advertising placed on NBC’s website, which would usually be seen by viewers, could miss out on exposure. Less advertising exposure equals less advertising revenue. Advertising revenue is what keeps many websites alive.

YouTube Not Happy

NBC are not the only one’s speaking out against VeohTV. According to Ricardo Reyes, a YouTube spokesman, VeohTV steers users away from YouTube ads while violating YouTube’s contract with its users. Mr. Reyes says the company is watching Veoh carefully.

The bottom line is online video and the right to screen it is a valuable commodity. Is it right that a third party can “replay” free content without the provider’s permission? Only time will tell - watch this space.

[via NYTimes.com]

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