Google Closes Video Marketplace; Users Out Of Luck

Hmm - a bonus to me is something that is additional. For example, buy 2 chicken wings, get a bonus wing. Not something that is given in lieu of a refund.

With Google’s massively deep pockets, not to refund seems off as you suggest. Maybe they had more tied up than we think?

Another episode in the dangerous saga that is the perils of DRM and what it does to consumers.

I wonder if Keith is smiling and will start emailing publishers about his new edgeio paid service?

Google $ 10.6 billion
Viacom $ 9.6 billion

Viacom want to kill Youtube & Google. I think google have lot of enemies.
Facebook, Yahoo, MSN, etc…

I think google want to spend money on tiny startup.

Weak Google, Weak!

I just posted a virtually identical comment to Jono’s (at 2) over at GigaOm. We’re not the same guy, honest!

You know what’s intersting about Youtube founders.
The three founders recieve $326 million and $64.6M.

Wow…. I think it’s hard to get job at Paypal.

Google definitely could use some work on shutting down gracefully, geez. A while back I put quite a bit of work into working with some of their APIs, with a similar result– “We’re Closed.”

People that get burned on this kind of stuff don’t really like it, and we don’t forget it.

Credit at Google Checkout, let’s just through peoples money away. Bad PR on Google’s part. You can do lots of things to people but keeping their money and not providing the service will piss people off.

Maybe only a couple hundred people ever bought anything with the service, so they didn’t expect a lot of backlash. Even so, it’s an unequivocally “evil” thing to do.

this will create bad reputation for Google. same kind of services can be expected for other Services like Gmail, Picasaweb, docs, spreadsheet etc in mere future.

I agree, not a good idea to burn people like this. This behavior makes me hesitant to depend on anything like Google API’s, paid services, etc.

If the same behavior carries over to their API’s then thats scary for web startups. So many startups depend on their API’s for everything. Everyone has outsourced or is outsourcing all real platform development to google and just creating cheap mashups to get rich. Won’t work if goog just decides to abruptly cut off API’s and services.

Looks like being google is getting into google’s head. I am just not sure why they would be doing this.

I wonder if google is having a bad quarter and they need every penny they can get their hands on or they just don’t want to show the size of the business by showing the loses from refunded money on their sec filings. I’d be curious how much money that is.

Thankfully I had only ever paid for one video. But I had downloaded copies of many other videos. Going back to check now I find some of them have been offloaded to YouTube already and the others are available via a Download to Sony PSP/iPod MP4 link. Since the future of the standalone videoplayer is probably also up in the air at this point, I just took the option to re-download as mp4s. I completely agree that full credits should be provided. This is a classic example of what happens when you pay money for a subscription or rent to own download service.

This outrageous indeed. Doesn’t matter if its a very few people who have purchased stuff from Google. Google agreed to provide a service to its users for a cost. And when they failed, its ethical for them to pay them back by refunding their money. Give $5 credit on Google Checkout. Are you kidding me… This kind of, who will do what to me, attitude won’t take Google any further since it’s services are used by people more because of their goodwill than the utility of service. If they go on like this, the day won’t be far when Google would be a word of history…

Bad decision on Google’s part, I agree. Why can’t they continue to allow the media to operate even if they aren’t going to sell new media?

I’ve never bought anything from Google Video, how much did people typically pay for videos there? I’m presuming people will have paid significantly more than $5 if buying quite a few videos?

Wow, that really is a good reason why DRM’ed files like this (especially rented time-limited ones) are bad news for consumers. $5 isn’t much compensation really.

Isn’t there some kind of consumer protection that comes into play here? Or does the Terms and Conditions of Google Video state that purchases may expire?

Even the buy-to-own videos? Did the service have backup (burn to disc) capabilities?

So at Google, Own means Use-it-til-we-tell-you-no?

I got $10

Google seems to be refunding the whole money spent on buying not renting Google Videos.

I got $50 bonus to use on Google Checkout within the next couple of months, since I have bought upwards to about that amount of download-to-own videos.

DRM is evil, so simply put it didn’t fit within Google’s philosophy.

Google most probably are preparing an anti-DRM video and music distribution system which they can’t talk about yet. I guess something like a membership that gives unlimited access as well as DRM-free pay-per-view for all formats and at all bitrates and resolutions. Somekind of layer on top of Youtube most probably, where if you are a member, you get access to the full quality video, as well as you would get access to all the tv episode and feature film length content who’s owners want a share of the Google Content subscription and if they want of the DRM-free pay-per-view.

I am just speculating here, but also I am sure that Google is working for us, we need a business model for our independantly produced videos and music files, and only Google can make it happen.

Eeek - better move away from Gmail then. I have a look through the T&Cs and found this:

“Google will provide at least thirty (30) days notice to Customer prior to terminating or suspending the hosted email service”

I also got $10 dollars to spend at select online stores within a couple of months. I bought 6 videos over the life of the service for a total of $6 bucks spent.

But what I really wanted to say is that for anyone that wants to continue to watch the videos that they’ve bought and downloaded from Google Video, you can rename the .gvi files to .avi and load them up in VLC media player (a free and open source media player). They’ll play fine in that player.

I’m terribly disheartened and annoyed. Imagine if staff from Blockbusters stores visited your house one day to remove every DVD you’d rented or bought from their shop… It’s not that different.

Its scary that they do this. When launching a product, most companies have an entry and an exit strategy as well as how it will affect users.
This exit strategy is badly thought out and makes one wonder about how strategic all of google’s the initiatives are?
Maybe their strategy is “just to throw spaghetti on the wall, and when it does not stick, users are out of luck..”
Its sad, but shows they are still an immature company. If they want to compete with MSFT, they have alot of growing up they need to do…

Now ask yourself, what if iTunes did this?

iTunes is just as bad, if you download music put it on your ipod and your PC goes poof, you end up with the same result. You can’t take the music off your ipod and you can’t redownload backups off itunes. So your $4,000 music library is stuck on your iPod!!

This is possibly THE worst way to treat customers. I would never had seen this coming from Google. They just bumped themselves way down from my list of respectable companies interested in maintaining good ties with users and customers. I mean how could they possibly think that someone who has paid for a video wouldn’t get upset? Don’t Google only hire smart people? This is a serious breach of respect and trust.

This is a new low for Google customer service.

If anything they could have refunded the customers - after all it’s not like they don’t have the cash and given the number of users who have purchased videos I don’t think the odd dozen or so would cause any noticable dents in their financial reports.

A sad day for Google and even sadder for those who have paid Google hard earned cash to download videos through their service. All down the drain — Thanks Google. You’ve outdone yourself beyond belief.

Hey, am I missing something here….. Looks like they DID refund their customers. Way I see it is that you “rented” something for a price. You don’t own it, right? So they took back what was there’s and gave you your money back. That means you’ve used it for free, right?

Seems like a good deal to me.

I can’t think of something stupid enough to add to the bullshit being ignorantly posted above, so I’ll just say, “research much?” didn’t think so…

Research? You don’t have to do research to conclude that Google really fucked up big time. Makes me question their other services.

O_o

Weird, I just started blogging so if you have some free time go to http://www.webgation.com to check it out!

^_^

This is definitely ignominious.
Google sucks.

I got one of these emails, and my jaw hit the floor. The audacity to offer me a 60-day expiring credit to their own payment service (which is not even the industry standard payment service) is disgusting. Why not just come to my house and take a dump in my DVD player while they are at it?

Jeremy (#28) said “Hey, am I missing something here…”

Yes, you’re missing two things. First is that Goole had two different video deals happening — a rental and an ownership (where they promised the video would be viewable forever). It’s this latter group who are understandably upset — they’ve been ripped off.

Secondly, Google is not, in fact, offering refunds. They are offering store credit to people who bought videos. But even that is theft in disguise: you have spend an amount equal to the “credit” in order to get your credit.

In other words, Google is saying “Sorry we stole from you, but we’ll let you play double-or-nothing!”

The doublespeak speaks volumes on its own: “In an effort to improve all Google services, we will no longer offer the ability to buy or rent videos for download from Google Video, ending the DTO/DTR (download-to-own/rent) program.”

While it is true that sometimes a policy may be simply stupid and not “evil,” once the seed is planted, it is hard to go back again, isn’t it. It is the same with Apple. They are making policy decisions that simply would not have happened in the days of fighting for survival. This past week they were shipping iWork06 packages that arrived on the day the new version was released. As long as the happy consumer does not open it they can exchange if, but it they did not read the paper that day? Tough luck, I guess. As is true of others (like me) who happened to buy it two weeks ago. In the good old days they never would have shipped the old version if a new one was coming out in two days.

And the new tagline: You can’t be too thin. Really? That might be true of a monitor but it has many other meanings to many other people.

Again, not evil, just stupid.

There was a time when Google and Apple did not do stupid.

Whats up with all these internet changes? Google video is closing? Now I hear that Pligg.com is selling. ( http://www.overdugg.com/pliggcom-is-for-sale/ )
Are we nearing a some big shakeups in the internet community?

You know your Gmail account is next. Or imagine Google Docs goes away…

“Thank you for your support, but our XX is going away. You can transfer all your data to our storage service for $1/Gb. cha-ching! For the hassle we give you $1 in Checkout money, which itself will be going away in 6months (and remaining funds in your account will be forfeited to the Jumbo 747 Google mobile for a good cause like global warming. Thanks for using Google and loving our beta products until they die!”

Google probably isn’t responsible for having to shut off the videos, but they certainly are responsible for the ridiculously short 60 day window to use the refund And it is patently offensive to call the refund a bonus. I would be surprised if they don’t backtrack about the 60 days after they see the hostile reaction from people like me, who never bought a video there. The bad publicity they’re going to get from this simply isn’t worth it, given the small amount of money we’re talking about.

The only good news is that this is an almost perfect situation to illustrate for people the evils of drm. In the future, whenever someone argues that drm isn’t a problem if you aren’t trying to make copies, this episode will provide a perfect response.

Buying something online with drm isn’t buying at all; it’s renting for as long as the company continues to support the drm.

Anyone wanna bet googlevil about-faces this decision? I’ve got some webvan stock I’m willing to wager…

What about people who bought videos via Google Video? Will they be lost?

I bet this won’t last (the compensation structure, that is). Someone higher up at Google will realize the damage they’ve just done and reverse the decision before the Class Action lawyers could file their papers.

Lets keep this straight: Google is giving MORE MONEY BACK THEN HAS BEEN SPENT ON THE VIDEO SERVICE, although it is in the form of credit on Google Checkout. If you spent $0.01-5, you get $5 credit, $5-10, you get $10 credit, etc… so if you spent $196 on the videos, you will get $200 credit. While this isn’t good situation for everyone, they’re giving full refunds in the form of store credit for products that were RENTED, and they’re giving you time to export anything that you purchased to own in addition to the store credit. If you rented something, you should expect it to disappear. I don’t think Google is being so evil here. It’d be kind of crazy for them to give full refunds to everyone. Do you really think Apple, or any other company, would give full refunds for all of the billions of songs that were purchased on iTunes if they decide to discontinue the service and you can no longer transfer the music to another computer? This is coming out of Google’s own pockets, I’m sure they aren’t getting a refund for the material they already distributed.

Two words:

Wire fraud.

Google SOLD videos to people and pocketed the money. Simple as that.

Can you say S.E.C?

Microsoft’s syndrom…
Google is suffering from the Microsoft syndrom: not respecting people, imposing bad treatment on users, acting in a selfish way, being dishonest…
Being a user of Adsense and Adword, I can tell you that this bad behaviour is by no way a surprise. I don’t like google anymore and I’m trying now other alternatives.

Google Video Store was a painful distraction for Google. All the while they should have been using their formidable online advertising capabilities to help video content providers make money in this market. Hopefully they’ll get on track now. I’ve had many discussions with Google executives about their video efforts over the last 2 years. For more analysis on this move, take a look at this post: http://www.broadbandvideo360.c.....deo-store/

-Will Richmond

Google IS providing full refunds on request. See
http://video.google.com/suppor.....opic=11489

This is not cool at all and I fell stupid that I paid for it. It’s like an online nigerian scam only this one is put together by Google.

They sould have mentioned from the start the full refund. Oh well…

I think that this is actually a blessing in disguise. A cruel to be kind measure perhaps.

Google stops Videos for Sale / Rent: A blessing in disguise?

Is Google also going to refund users for the time they spent collecting video downloads ‘to own’ only to have their collections blown away?

No matter how you slice it, this is the most evil thing that can be done to a consumer who agrees to download DRM, and far as I know, Google was the first to do it. They broke the cherry. Since Google is so respected in the industry, how many do you think will follow when their services aren’t doing well, citing Google’s as standard practice? It simply doesn’t matter whether I get a full cash refund or not. If you sell me something, you should not have the right to reverse the transaction at a time of your choosing, because I put some resources into completing that transaction on the understanding that it would be final.

This sort of thing should be against the law, if it isn’t already in some technical way. If you run a DRM service and decide to cancel render it inoperative after the fact, the only lawful course of action should be to make software available to remove the DRM from all purchased tracks (rentals not included, obviously).

Nothing else is even remotely fair. And if the content providers refuse to allow it, then the law should go after them as well, as they were party to the agreement.