Disney Fires the First Real Shot in On-Demand Wars
February 28th, 2008
ABC network will start streaming fresh episodes of hits including “Desperate Housewives” and “Lost” at the click of a remote, starting with Cox Communications’ 6 million cable TV customers. OK, not all of them — they’ll need a digital cable set-top box to enjoy VOD — so that cuts the number to 3.1 million.This is a definite step up from earlier not-so-bold steps into network VOD, such as CBS (NYSE: CBS) and General Electrics’ (NYSE: GE) NBC expecting us to pay a buck for the privilege to get shows through Comcast’s (Nasdaq: CMCSA) VOD. ABC has been testing the waters in select markets where it owned the local broadcast station, also through Comcast. The Cox deal will spread VOD goodness across the country, no matter who owns what broadcasting partner. In fact, it gets even better. The stations will control some of the advertising shown, giving them some incentive to actually market the new delivery option. In tests, 93% of the subjects didn’t mind the commercial breaks; they’ll be a lot shorter than what’s on regular broadcast TV anyhow.