Watching the Business Model

12 April 2006



ABC Hit Shows to be Free on Internet

The introduction of a new technology is the greatest threat to any industry. Fletchers, buggy whip makers and steam locomotive manufacturers just haven’t got the same market since the invention of gunpowder, the internal combustion engine and airplanes. What the internet means to TV networks is still unclear. However, ABC has decided to find out rather than let events run it over.

Starting in May, people will be able to watch “Desperate Housewives” and “Lost” for free for two months. In June, “Commander in Chief,” as well as the entire season of “Alias” join the line up. According to the AP, “The shows will include advertising that cannot be skipped over during viewing. ABC, which is owned by The Walt Disney Co., already offers ad-free episodes for $1.99 each on Apple Computer Inc.’s iTunes store.” The episodes will be available for play-on-demand the day after the show airs.

This is exactly like recording the program to the viewer. The difference is that the recording happens at the broadcaster’s end. Otherwise, this is merely another way to get people who are busy from 8-11 pm to watch the programs that are on then. However, it also allows people who don’t even get ABC’s signal to view the programs, which means that foreign markets are now more accessible. In addition to selling a series to RAI in Italy, ABC can get viewers in Italy through the internet.

ABC, of course, hasn’t got it figured out perfectly yet. “It’s an opportunity for us to learn more about a different model,” Anne Sweeney, president of Disney-ABC Television Group, told a convention recently. “Our ultimate goal is to find an effective online model, one in which our affiliates can take part,” Alex Wallau, president, operations and administration, ABC Television Network, said in a statement.

ABC is owned by Disney, and shareholders of Walt’s stock should be pleased. The company is trying to discover what works. It may fail miserably, and loads of money may be lost. However, one thing is certain; if ABC doesn’t try, it will fail, and it will lose loads of money. This is something that a great many companies failed to do when their industries changed. Chapter 11 is full of them. ABC is determined to avoid that fate.

© Copyright 2006 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Fedora Linux.

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