Broadcasters Potential On-Demand Services

Broadcast Networks’ Potential On-Demand Services MediaWeek - 10/03/05

• The broadcast networks are all in discussions with cable operators to offer their programs on a VOD platform.


• Some networks could launch on-demand products as early as next summer or at the start of the 2006-07 season.


• Broadcasters think that revenue from VOD could offset some of the production costs for scripted programming.


• Cable operators are interested in deals with broadcasters because of the need for more content on VOD and the potential alternative of using the Internet as a plausible VOD vehicle.


• CBS research shows that the average TV viewer would purchase about 100 hours of VOD programming a year, and watches about 1,000 hours of TV in that time.


• There are questions about consumers agreeing to pay for broadcast repeats in VOD, but broadcasters have to pay rights fees for talent and music, etc.