Saturday, November 05, 2005

CBS webcasts "Threshold", considers offering shows in iTunes

Exclusivity is a powerful weapon, but tends to more directly benefit the vendors involved while underserving the end consumer. I was stoked to learn that my dreams are coming true of a world where programming from all the major television networks is available from a centrailzed source is coming to pass. CBS is webcasting its show "Threshold" on its own web site, and is seriously considering retailing video podcast versions of "60 Minutes" and "Guiding Light" in Apple's iTunes Music Store.

Should this come to pass, this would mean iTMS would have programming from CBS and ABC, with assumedly Fox and NBC being pressured to jump on board, or doing so with a similar offering with Microsoft's forthcoming version of Windows Media Player (which itself upon release will expectedly be a tearing down of iTunes' stranglehold on the media e-tailing market). And will this mean similar stimulation for networks like VH1, MTV, TNT, AMC, ESPN, USA Network, etc.? UPN already made "Everybody Loves Chris" accessible via Google Video and The WB reacted by streaming "Supernatural".

ABC's offering is strategic. It's raking in a fortune with viewership and sponsorship alike for "Lost" and "Desparate Housewives", so anything it makes from download sales is gravy. It likewise can afford to offer poorly-rated shows because it's got nothing to lose. The mid-range, neither-breakout-hit-nor-cellar-dwellar shows like "Grey's Anatomy" (my personal favorite) can't be offered because they're too risky. So it's polarity that's driving the e-tailing model.

And will this mean a price war between rival networks? We can't assume a manadated universal rate for content...can we? "Lost" retails for $1.99 per episode, or a discounted bulk rate (30% off the cost of an entire season). Will the majors get into an undercutting battle, or develop clever bundled giveaways, like "Buy three episodes of 'My Name Is Earl' and get a bonus episode of 'Joey' for free"? Perhaps. It'll be all that more enjoyable for us because we'll have choice, and possibly, incentives.

"All of the major networks have been experimenting with so-called IPTV, leading many to believe they are exploring Internet bypass strategies, or at the very least are seeing the world of TV distribution as a multi-platform model - part broadcast, part cable, part satellite, and part Internet and other emerging digital video formats" - MediaPost.com

Since the release of iTunes 4.9 in late June, Steve Jobs has been sitting on a goldmine. It started with the release of podcast programming from the Disney family of networks (ABC, Disney, ESPN, et al.), and when video came around with iTunes 6.0, ABC was right at the forefront. Jobs' executive in-law affiliation with ABC through Disney by way of his chairmanship of both Pixar and Apple certainly had some weight in brokering the deal. It's good to be the king.

Ball's in Steve's court now - CBS is reportedly assessing the economic feasibility of being listed in iTunes - so let's hope this isn't a big exclusive thing. The more the merrier.

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