To the surprise of no one, the new deal between Apple and Disney -- which enables iPod users to download popular ABC TV shows such as "Desperate Housewives" and "Lost" as soon as the day after airing -- is causing a commotion. A story in today's Wall Street Journal (subscription required) examines the potential impact of this deal from several angles, some of which are not pretty.
First, there's anger. ABC TV affiliates are upset that they weren't even notified of the deal, much less consulted on it. They're worried that it could impact their revenue: if people know they can just download a hit show anytime, why would they watch it when it's aired? And surely they won't stick around for the reruns. This hurts ratings, and the ability of the affiliates to sell advertising.
This is the same argument that the TV networks (now all owned by larger media corporations) used in the early 1980s against VCRs and home taping. The irony is that, after fighting bitterly in the courts (and losing), the networks benefited greatly in the long run from a whole new revenue stream.
Meanwhile, actors and writers are also upset: they want a cut of the download revenue as well.
Of course, everyone saw this coming. A-la-carte television hit cable systems two years ago; wireless phone companies have introduced video programming on cell phones; and major internet portals have been itching for TV and movie programming for downloads. It was only a matter of time before Apple cut its deal.
(And now that Bob Iger has taken the reins at Disney, last week's announcement was a perfect opportunity to show the media community that, unlike his predecessor, Michael Eisner, he can play ball with Steve Jobs. This also bodes well for a possible renewal of the Disney/Pixar deal.)
All this is well and good, but the real issue, as the Journal points out, is consumer behavior. Tivo users have the luxury of controlling their TV-watching habits. Theoretically, they're not married to appointment TV. But have they really changed that much?
And that's the key question: Is the Disney/Apple deal the straw that broke the appointment-television camel's back? Will all those iPod users download shows at the expense of watching them at air time? Or will they use their iPods just for repeat viewings? Or will their usage be a combination of both that, as with the VCR, added up to a net gain for the media giants?
If users do significantly change their behavior, away from appointment television, this could be the deal that impacted everything: content distribution, content creation, advertising, and on and on.
If so, ABC's affiliates have a right to be worried. But something tells us they're not doomed. Yet.
Related Stories: | Topics:Work/Life, entertainment, ABC Inc., Apple iPod, The Walt Disney Company, Digital Music Players, Audio and Video Devices |
Recent Comments | 4 Total
October 17, 2005 at 9:51pm by Darcy McGee
You know, the TV market is enormous. The iPod market is a tiny drop in the bucket. 17.5 Million Households in the United States watched Desperate Housewives last year. Last time I heard, about 12 Million iPods had been sold around the world. There's simply no way that 100% of those iPod owners are going to order the show - and if they do, the various partners have US$24 Million to cover the production and distribution costs of a single episode. I'll take a piece of that.
This is nothing more than a test of a distribution model. Not a bad one at that.
I'll be more interested to see if a video equivalent of Podcasting becomes a reality. I suspect it will - Paris Hilton's experiments are a fine example - but it's going to take a bit longer than audio.
October 17, 2005 at 10:18pm by Anthony
Hate to break it to you but i've been watching downloaded tv the next day for about a year now. It goes down like this.
I watch TV shows when they air on TV. So TV network guy can calm down. If i miss a show or if two shows I like air at the same time, i watch one on TV. See mister tv exec, it is ok. Then I download the show i miss from bit torrent the next day. These are stripped of commercials so that is a plus for me. I then watch the tv show on my computer (19 inch @ full screen).
The only newness for me is being able to watch shows on the move. So the end result is, I watch all the TV i normally would EXCEPT now i do not miss shows.
October 24, 2005 at 12:02am by Tom
I've been watching tv the next day for almost 2 years -- the video capture card on my PC uses an open source TV directory that lets me schedule recording TV programs up to a week in advance. I can record from low-resolution (that looks fine on a portable device) up to HDTV quality. As soon as the show is done, an MPEG file is sitting on my hard-drive, waiting for me to watch, or download to my PocketPC or other video-enabled device. I can save every episode of every series that I want, only limited by hard drive storage capacity.
October 26, 2005 at 5:44pm by Karl Dahlquist
Who wants to watch television on a 2 inch screen? Certainly not the mainstream, or else everyone would be carrying around a handheld TV device.
ABC should be more worried about writing a decent script for Desperate Housewives than downloading it to an overly expensive device, and Apple should worry about the failure of that iPod phone which isnt moving as predicted by all the "experatis."