Posted by: euromediablog | May 20, 2009

Zattoo Encounters Difficulties with Copyrights

The Internet TV-platform Zattoo is having serious problems with securing copyrights for its online transmission. Although the company had signed one year transmission contracts with the German public service broadcastes, it was recently  forced to cancel the online transmission of popular movies, like “Psycho” or “Frenzy”. This happened after Hollywood Majors (Warner Bros and Universal) managed to sue out a restraining order, prohibiting the transmission of their products online.

What makes the situation interesting is the fact that the content providers ( in this case ARD and ZDF) had already purchased the copyrights, which allow the transmission of the movies on the territory of Germany. It is apparently not clear if these transmission rights include internet distribution as well. And in Zattoo’s situation this didnt’t seem to be the case.

The company was  founded in Zürich in 2006 and transmits TV Content online since then. Untill now it has been covering 8 European states and there are more to come. Zattoo’s business model based on negotiating online transmission with the leading broadcasters in the country, thus expanding their reach among the young internet users. The recent development shows that soon this might not be enough, with  the original content producers (like Warner and Universal) becoming pretty accurate on the way their contents are distributed.

For further information: Frankfurter Rundschau

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