"You're pulling the shows from the internet?!? What are you, China?!? And by the way, you don't think the kids already have a workaround? This morning, when I woke up, my 8-year-old son was watching Dark Knight Rises in 3D. They're already figuring it out. So basically you're blocking old people from watching the show, and just giving people a chance to discover that there's other entertaining s**t in the world...."

So today it's interesting to hear about a network taking the exact opposite tack. AMC, home of a bunch of popular shows cast somewhat in the HBO mold, was recently dropped from the basic package for Dish satellite subscribers. AMC says that unlike the Viacom/DirecTV situation, they were not asking for more money and this was not a negotiation issue, but rather Dish trying to "gain leverage in an unrelated lawsuit."

So what is AMC's response? Well, the much-anticipated fifth-season premier of Breaking Bad, one of their flagship shows, is airing on Sunday—and they've decided to set up a special online stream just for Dish subscribers, so they can watch it for free. Meanwhile, they point out that virtually every other satellite and cable provider includes AMC in its basic package, and that several are now offering special sale prices for customers switching from Dish. They even have a toll-free line at 1-855-2DROP-DISH offering more information. For Dish, this is what you call a "PR nightmare".

But -- and here's where it gets even more interesting -- Dish claims they dropped AMC because the company insists they also carry some other less-popular networks bundled with it. That's why DirecTV says it dropped Viacom, too. It's a bit of an our-word-against-theirs situation as to the real cause of the conflict, and it's likely that neither company is entirely blameless. But AMC's first move was to go straight to the fans with a special offer to give them what they want. Viacom's first move was to... petulantly punish not only the fans involved in the dispute, but all of their fans.

Both Dish and DirecTV are experiencing backlash—even though some people support DirecTV in the bigger picture, most fans are just reacting to their favorite shows suddenly disappearing, and understandably getting annoyed with their service provider. But while AMC has leveraged the situation as a way to get good PR by offering fans something special, Viacom managed to extract its own dose of negative backlash by further depriving them.

Much like the MPAA, it seems Viacom needs a lesson in communications.

"No problem until today trying to watch HBO," a standard definition TV owner with an HR 20 DVR noted on Saturday. "Get message that the program is content protected. I can view every other channel except HBO. This wasn't the case last week. Something new?"

Ditto declared another poster a few hours later: "Noticed something strange this week also regarding HBO. Although my Sony is connected via HDMI I get the message that my 'set is not compatible with..... ' displayed too briefly to read in its entirety. It is displayed when changing between HBO channels. Same TV, same HR20 for nearly six years, never a problem prior to this."

...

"As of today, I can no longer watch HBO over HDMI to my television," another consumer disclosed. "I get an error message that says 'HDMI connection not permitted. Press SELECT for more information.' (And pressing Select does nothing.)."

Turns out the problem is HDCP encryption, a newer part of the HDMI standard that premium channels are requiring pay TV operators to implement. Ostensibly this is to stop people from obtaining high-definition copies of movies and TV shows—but of course, HDCP was cracked a while ago and this will do little or nothing to stop the dedicated (and highly organized) groups that make such copies available. Meanwhile, it forces a bunch of paying customers who were happily and habitually enjoying the content to suddenly go out and get expensive new equipment (or, quite reasonably, turn to piracy to replace what was taken from them even though they still pay for it). DirecTV suggests a workaround—switching to component video instead of HDMI—but as Ars points out, this is a pretty weak response: component video is much lower quality, and some content still won't work, because first-run movies employ selectable output control (another silly DRM restriction) to prevent analog output.

It's truly amazing that companies like HBO still pursue such strategies. There is not, and never has been, a form of DRM that effectively prevents piracy—but every single form of DRM reduces the value of the product to legitimate subscribers. It's pretty bizarre to continually punish the only people who aren't engaged in the behavior you want to stamp out.

The service is part of an attempt by studios to harness pay-TV as they seek new ways to sell movies and counter shrinking DVD sales. Few customers will purchase the premium rentals unless the quality of the movies improves and the price comes down, White said in an interview.

“They’re priced too high for consumers,” White said. “We didn’t choose that price, but that’s where the studios forced us to be.”

But Blockbuster quickly jumped at the opportunity, throwing money at the studios, not only to avoid the new release delay, but so they could use the opportunity to mock Netflix instead of having to innovate. DirecTV has also now decided to play along, and will be paying for the honor of offering new releases under the "DirecTV Cinema" brand. Like Blockbuster, it didn't take DirecTV long to brag that unlike Netflix or Redbox, they'll be getting Avatar the same day it hits store shelves:

"As many as 400 new movies will be available this summer through DirecTV Cinema. Titles from Universal Studios Home Entertainment, Twentieth Century Fox and Time Warner Inc.'s Warner Bros. will be given to DirecTV subscribers 28 days before they can be rented on Netflix, said Paul Guyardo, DirecTV's chief sales and marketing officer"