[opendtv] Fox, Affiliates to Share Money From VOD

  • From: Monty Solomon <monty@xxxxxxxxxx>
  • To: undisclosed-recipient:;
  • Date: Sat, 15 Apr 2006 01:55:12 -0400

      Fox, Affiliates to Share Money From VOD
      - Apr 14, 2006 01:56 PM (AP Online)

By SETH SUTEL AP Business Writer

NEW YORK (AP) -- Fox has reached a deal with its affiliated TV 
stations to share revenues from video-on-demand, the Web and other 
non-traditional ways of distributing hit Fox shows like "American 

Several networks have raised the ire of their affiliate groups in 
recent months with deals to offer replays of network programming 
through new channels like Apple Computer Inc.'s iTunes services and 
the Web.

Network-affiliated stations want a share from these new businesses 
and are concerned that they could take away viewers and advertising 
dollars from their own stations, which long enjoyed exclusive access 
to network shows.

In the latest move to upset traditional TV business models, Walt 
Disney Co.'s ABC on Monday said it would offer full-length versions 
of "Desperate Housewives," "Lost" and two other shows for free on the 
Internet on the day after they aired. The shows will appear online in 
a two-month trial and will contain interactive ads that you can't 
skip through.

ABC also offers shows for sale on iTunes, while General Electric 
Co.'s NBC and CBS, which is owned by CBS Corp., have cut deals with 
Comcast to sell replays of hit network shows on VOD, or 
video-on-demand. Cable operators are clamoring for more hit shows for 
VOD, but have had difficulty getting affiliates and advertisers on 

The deal between Fox and its affiliates was worked out over the past 
several months and finalized last week, Brian Brady, the head of 
Fox's affiliate group, said Friday, confirming several news reports. 
Fox has more than 150 affiliated stations.

Brady described the six-year deal as "the beginning of a change in 
the relationship between the affiliates and the network," where both 
will be partners in creating a market for video-on-demand and other 
new kinds of platforms for network programs.


      - http://www.quote.com/home/news/story.asp?story=57632008

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