AOL Starts Online TV Service To Compete With Google, Apple By JESSICA E. VASCELLARO Wall Street Journal
March 16, 2006; Page D4 http://online.wsj.com/article/SB114246336112499357.html?mod=technology_main_whats_news America Online Inc. launched its new service in the fast-growing market for online video programming -- a television network that shakes the dust off classic television shows and streams them to viewers, with commercials, free of charge. The service, In2TV, is a partnership between two Time Warner Inc. divisions, AOL and Warner Bros. It is accessible off the AOL homepage and currently features hundreds of episodes from 30 shows as well as some short video clips. The offerings, which will rotate on a monthly basis, are clustered into six channels ranging from "Vintage TV," which includes shows like "Growing Pains" and "F-Troop," to "Toon Topia TV," a category with animated favorites like "Beetlejuice" and "The New Adventures of Batman." AOL plans to expand the service to more than 300 rotating shows within the year as well as to begin offering a broader range of television content -- including more-recent series and shows from other program owners. Starting this summer, some shows will be available as downloads at prices that have yet to be set, according to Kevin Conroy, executive vice president for AOL Media Networks. The new broadband service comes as AOL's competitors are creeping into the market for vintage television as well. Apple Computer Inc.'s iTunes, whose video store boasts current TV hits like "Desperate Housewives," also sells episodes from older series like "Saved by the Bell" for $1.99 each. In January, Google Inc. launched its video store with prime-time hits from CBS along with classic TV shows like "The Brady Bunch" and "I Love Lucy," which it often sells for $1.99 each. The push to offer classic television shows online is driven in large part by the fact that media companies are finding the content easily accessible. Studios are jumping at the opportunity to once again make money off shows that have been sitting on their shelves, particularly since they don't compete with current television programming and are unlikely to dip into the increasingly lucrative market for TV shows on DVD. The content providers are also increasing comfortable with the anti-piracy technology that companies like AOL have put in place to ensure their shows aren't unlawfully spread. More online video providers are likely to follow AOL's lead and adopt an ad-supported model as the audience for online video continues to grow, says Josh Bernoff, an analyst at Forrester Research in Cambridge, Mass. But he warns that maintaining that model for more-current shows is likely to be difficult due to licensing agreements. An estimated 63 million U.S. Internet users watch online video at least once a month, according to Parks Associates, a Dallas-based market researcher. Eight percent of those viewers say they are paying for the content, according to the survey, completed this month. ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
