[opendtv] News: The Chicago Tribune Phil Rosenthal Media column
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Thu, 10 Nov 2005 09:11:37 -0500
>CBS Executive Vice President Martin Franks, the=20
>Michigan City, Ind., native who cut the=20
>network's Comcast deal, sees it as merely an=20
>extension of network television, not a=20
>replacement.
>
> "If you didn't have a network in the first=20
>place, how would anybody know they wanted to=20
>watch 'CSI' or 'Desperate Housewives' in the=20
>first place?" Franks said.
The Chicago Tribune Phil Rosenthal Media column
November 10, 2005 12:00am
Source: Chicago Tribune (KRT)
Nov. 9--What happened this week to television was big.
Remote control big. VCR big.
Just as the zapper made it possible to rifle=20
through TV programs at REM-cycle speed and the=20
videocassette recorder let us watch shows on our=20
own schedule, the deals CBS and NBC announced=20
Monday grant even more power to the living room=20
electorate.
Joining the on-demand media world, CBS has=20
arranged to make just-aired episodes of some of=20
its most popular shows available on demand,=20
beginning in January, to Comcast subscribers who=20
pay extra for digital cable service in cities=20
where the network owns stations (such as=20
Chicago). The price will be 99 cents per program.
NBC Universal made its own 99-cent deal,=20
enabling the DirecTV satellite service to offer=20
new episodes of certain programs, also just hours=20
after they first air. The arrangement is a little=20
more complicated than CBS', involving special=20
digital video recorders or pay-per-view channels,=20
but the result is more or less the same.
These baby steps are hardly the death of=20
television as we know it. But, along with ABC's=20
recent decision to make some hit shows available=20
for sale on the iTunes Web site, they might be=20
the beginning of the end for that age-old=20
viewer's lament: "There's nothing good on right=20
now."
"The lesson of what happened yesterday, which I=20
do believe is a seminal day in the history of=20
television, is that the rigid distribution chain=20
that everybody has been used to is getting shaken=20
apart," Josh Bernoff, a media analyst for=20
=46orrester Research, said Tuesday.
"The future is about whatever I want, wherever=20
and whenever I want it ... and the more ways you=20
do that, the more revenue there is for everybody=20
in the business."
Even if these distribution models turn out to=20
not be the ones that endure--and smart money says=20
the prices, availability, selection of shows and=20
the inclusion of ads are all subject to change=20
over time--it seems likely this is going to be=20
one more way to watch network TV in the years to=20
come.
"Anything that increases the number of revenue=20
streams is going to make a big difference,"=20
Bernoff said.
CBS Executive Vice President Martin Franks, the=20
Michigan City, Ind., native who cut the network's=20
Comcast deal, sees it as merely an extension of=20
network television, not a replacement.
"If you didn't have a network in the first=20
place, how would anybody know they wanted to=20
watch 'CSI' or 'Desperate Housewives' in the=20
first place?" Franks said.
"For the foreseeable future, people are still=20
going to enjoy sitting down to watch 'Survivor'=20
as some sort of family unit on Thursday night [at=20
7 p.m.]. But there are going to be people who=20
can't watch it then, and this is going to be=20
wonderful for them to catch back up. We're trying=20
to give people as many ways to plug back in as=20
possible."
CBS, unlike NBC and ABC, is including ads in its=20
supplementary on-demand offerings. "We wanted to=20
send a message to our advertisers that we see it=20
as an extension and a reinforcement of the=20
network ... not a cannibalization of it," Franks=20
said.
Still, the reason its Comcast deal covers only=20
cities where CBS owns stations is to head off=20
complaints (such as the ones ABC's iTunes deal=20
drew) from affiliates owned by other companies=20
that it is stealing viewers without compensation.
While no one is saying what the revenue split on=20
these on-demand deals will be, a CBS exec last=20
year estimated the network takes in about 36=20
cents per hour for each prime-time viewer. So a=20
50-50 split on the 99-cent fees would more than=20
cover whatever dropoff is caused by the secondary=20
viewing option.
"Someone asked me this morning, 'What are your=20
projections?' Well, we don't have any," Franks=20
said. "The whole reason for doing this is to find=20
out if there's any steak to this sizzle. We think=20
there's going to be. ... We're not a [non-profit]=20
organization. We think this is going to be a=20
moneymaking venture.
"The nice thing is, unlike so many things in=20
this business where you get endless speculation=20
but no real conclusion, starting the first of=20
January, if you're a Comcast subscriber in=20
Chicago and you've got a digital box, we're going=20
to know whether you like this product."
As Bernoff points out, networks have, to this=20
point, mostly served two roles. One has been to=20
help make TV shows, help finance them and then=20
promote them. The other has been to broadcast=20
them.
"You're seeing the first role become more=20
important than the second in that, yeah, it's=20
great to broadcast the program, but that's just=20
the beginning of that program now getting out to=20
consumers," he said.
<<Chicago Tribune (KRT) -- 11/10/05>>
<< Copyright =A92005 Chicago Tribune >>
----------------------------------------------------------------------
You can UNSUBSCRIBE from the OpenDTV list in two ways:
- Using the UNSUBSCRIBE command in your user configuration settings at
FreeLists.org
- By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word
unsubscribe in the subject line.
Other related posts:
- » [opendtv] News: The Chicago Tribune Phil Rosenthal Media column
