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Mike Berkley  //  Covering TV Everywhere, Hulu, and Netflix Business Models. By former CEO of SplashCast Media (www.splashcastmedia.com), Mike Berkley.

Oct 29 / 9:49pm

Should Facebook be the authentication provider for TV Everywhere?

With over 300M consumer accounts and adding 5M new accounts EACH DAY, Facebook will likely reach the 1 BILLION in 2010. It is therefore safe to assume that the vast majority of Comcast, Time Warner, DirecTV, and Dish subscribers will have a Facebook account.

Without any doubt, Facebook has now become the "identity gatekeeper" of the web. Facebook is the defacto openID provider.

As such, there ought to be an easy way to leverage Facebook to solve TV Everywhere's authentication challenge.

Imagine if we could link our cable / satellite accounts to our Facebook accounts. A couple clicks using Facebook Connect on the cable provider's web site is all it would take. Once a link is established between DirecTV and Facebook, for example, DirecTV could provide Facebook with that user's content access rights (such as: user has rights to HBO content but not Showtime).

Here's a back-of-the-napkin use case of how it might play out:

  • Let's say I am a basic Comcast cable subscriber and have a Facebook account.
  • I sign into Comcast.net with my Comcast-assigned username and password. I am prompted to click on a FB Connect link and then the "Authorize" button. Comcast sends my cable TV account info to Facebook, which Facebook stores as part of my Facebook profile.
  • I then go to Yahoo and select the latest Simpsons episode to watch. Yahoo's TV Everywhere "enabled" video player (see explanation below) prompts me to sign in via Facebook Connect. I click "approve" and Facebook sends the video player my Comcast profile, which tells the video player what I'm eligible to watch. The player stores my cable profile info via a cookie and begins streaming the episode. When I try to watch a HBO content, the video player knows to block the stream.
  • The above example could take place on ANY website that uses a TV Everywhere "enabled" video player. This could simply be a "chromeless" Flash-based player with Facebook Connect implemented and logic to interpret content provisioning based on cable account profiles.
  • Using Facebook Connect for authentication, any site would be able to present TV Everywhere content and (almost) every cable subscriber would be able to participate after only a few "I Authorize" clicks.


OK, I know the above may be overly simplified, but hopefully you get the gist.

The big question here is whether the MSO's would be willing to share any customer account information with Facebook. To make TV Everywhere work easily for consumers, I believe they will need to share.

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14 comments

Oct 30, 2009
Tom Turnbull said...
Interesting. Makes sense from a the perspective of market share. Would a given Comcast account be entitled to a limited number of Facebook account linkages? It certainly couldn't be unlimited, but limiting to a single family member would be unfair. Is there any reason to do machine level authentication in addition to/instead of user based authentication?
Oct 30, 2009
Marcus R. said...
I don't see this panning out at all. Maybe at a conceptual level, but not in the real world. Comcast etc all know that at least half of their paying User Base does NOT have a Facebook account (40+), those that pay the bill. Or, they don't use their Facebook ID for anything other than logging into Facebook to check family updates. They are not heavy social media Users who use their Facebook ID everywhere, so it's not a natural marriage for the Users. Their ID is stored in their Browser and they probably don't even remember it.

Also, I doubt any media company wants to give Facebook that added power and weight. It really doesn't do Comcast any good to make Facebook more of a behemoth and penultimate gatekeeper. Bad cultural mix.

Far more likely would be simple alliances with Mobile Providers where a User's Mobile and Mobile Number, including Mobile billing, are integrated into the TV-everywhere model. Those deals could be implemented quickly and also avoid any prospective anti-trust actions.

Of course, this is all if you believe that TV-everywhere has a chance of becoming what it's promoted to be? Or, is it a self-fulfilling suicidal move that will further fracture an Industry? DRM didn't work. Free doesn't work. Everywhere with little payments or ads attached?

Maybe something less obvious is more likely. I'd look to a Google-Mobile Carrier alliance (or, Goog just starts their own mobile network with cross-carrier payments integrated into the platform), that would be a gateway with a business model attached. But, again, it would be based on Mobile, not Facebook.

Who knows? It's all speculation. But, I don't think Facebook is going to move in this direction or that anyone would allow them to.

Oct 30, 2009
Mike Berkley said...
@marcus: great points. If you believe a MSO-neutral entities will be required to handle authentication on non-MSO web sites (such as TV.com), then Facebook is the best option out there b/c of their unmatched consumer reach.

But I agree that would be a courageous step for the MSOs, even if it's necessary to realize the full potential of TV Everywhere.

Oct 30, 2009
Mike Berkley said...
One other thing: with Facebook Connect, the user only needs to login into Facebook.com one time (click the "stay logged in" checkbox), and can then log in to any Facebook Connect web site without having to remember any passwords. That's the kind of user experience that will be required for TV Everywhere to take off. passpassword
Oct 30, 2009
Tom Turnbull said...
I would challenge the statement that Comcast customers (especially those actually interested in streaming content) don't highly overlap with Facebook. I would like to see some data. That said, it will be difficult to convince Comcast to outsource, so to speak, customer linkage.
Oct 30, 2009
Mike Berkley said...
Tom: agreed on both points.
Oct 30, 2009
Marcus R. said...
@mike I read a post comment on GigaOm this morning; Om says:

"As for Facebook v Google: The fact that facebook is only 5 years old and has about 27% reach, says something doesn’t it. I think the two are going pretty neck to neck."

If those numbers are right, then it's 27% to Facebook and 100% to Google. And, some of us believe that Facebook will level out as the social media space sub-divides, while Google continues to grow because it assimilates and doesn't sub-divide. It can think in terms of Decades, not years.

Google may be the only common denominator for "everywhere."

Regardless, the biggest problem with "TV Everywhere" seems to be that there is nothing to watch, but that's a whole other subject.

Oct 30, 2009
Mike Berkley said...
@marcus Ha! Quality of content is indeed a different discussion, for a different blog. :-)

Google is not 100% market reach. Remember, we're talking about REGISTERED USERS, with profiles. Facebook beats Google in that category with over 300 million user profiles created. I'm not sure where Google is, but it can't be more than 300 million.

Oct 30, 2009
Keith said...
I agree with Marcus' point regarding the opportunity for the mobile providers. The combination of two-factor authentication and a larger user-base than Facebook make the mobile device, in many ways, the ideal platform for a wide range of identity verification/authentication applications.

At least I can't think of a better one!

Oct 30, 2009
Mike Berkley said...
Keith, great point! Having hardware-based authentication on a device that is with you "everywhere" makes a ton of sense.

However, there is no single mobile provider with the same market reach as Facebook. So we are back to square one: needing an aggregated database provided by a neutral 3rd party.

Oct 30, 2009
Keith said...
Mike,

You're right of course. I should have been more specific.

Now that mobile devices are the growth application platform, there is an opportunity for an "application/service provider" to provide the verification/authentication solution. No small task, but I am somewhat surprised that a clear solution has not yet emerged. Sure RSA has a vested interest in preserving their token business but the ubiquity of mobile devices make them overwhelmingly appealing as the token.

The mobile players will need to benefit from the application or (to your point) you'll never achieve the aggregate user-base necessary to make it succeed. What's lacking?...not technology. We need a business model and clear leader to gain a significant market share. Once the market share reaches a critical mass any mobile provider hold-outs will join or loose out.

Many challenges to overcome of course but I believe that the solution is so compelling that it is only a matter of time.

Oct 30, 2009
Mike Berkley said...
Understood, Keith. I agree. But I wouldn't discount Facebook rolling out FB Connect For Mobile in 2010 and walking away with the exact opportunity you describe. The core value of Facebook is in identity and relationship management. And no one else touches their market share in that category.
Oct 31, 2009
Tom Turnbull said...
Mike, I'm wondering whether an iTunes device specific approach would make more sense for TV Everywhere. As you know, iTunes allows a user to authorize a certain number of devices per account. The same approach could be used for TV Everywhere. Simply download a player with login on each device (whether PC or mobile). Each Comcast account is entitled to 10 (?) authorized devices. For pure web (e.g., Fancast.com) authentication download would allow for play via browser (it "unlocks" play via a given site).

I'm guessing that the ultimate TV Everywhere approach won't involve Facebook Connect (as simple as it sounds) for political and strategic reasons.

Nov 02, 2009
Keith said...
Mike,

You may very well be right. Momentum is important and FB definitely has that.

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