ABC Deal Stuns Affils By Allison Romano Broadcasting & Cable
4/17/2006 7:58:00 AM http://www.broadcastingcable.com/article/CA6325082.html?display=Breaking+News Six months after ABC shocked its affiliates by cutting a deal with Apple to sell some of its shows on iTunes, the network last week unveiled an online-distribution deal that once again bypasses ABC stations, raising new concerns for local broadcasters. In May, ABC will launch a two-month trial to make four hit shows, including Lost and Desperate Housewives, available on its Web site. Unlike the iTunes offering, where users buy episodes for $1.99, the repeats on ABC.com will be free, potentially widening the appeal. The development alarms station operators, many of whom say privately they risk losing prime time viewers and undermining the promotional platform for local news, a station's biggest moneymaker. Publicly, though, local broadcast executives reacted cautiously. "We are living in a world where we all need to experiment, but I caution [the network] not to push it so far they undermine the core business," says Gannett Broadcast President Roger Ogden, whose company owns three ABC outlets. ABC executives briefed some station owners on the plan April 10, the day the deal was announced. Most did not have advance notice of the iTunes deal. A major sticking point for affiliates is sharing potential revenue. As ABC and the other broadcast networks offer their shows online and through video-on-demand, stations want to be included in any revenue from subscriptions or advertising. Without the local stations, managers contend, the networks' shows would not gain the exposure necessary to attract interest on new platforms. Stations are also interested in new technologies, such as an offering from technology firm Decisionmark being tested by CBS affiliate WRAL Raleigh, N.C., that would allow stations to stream network shows on their Web sites but only to their markets. ABC has told affiliates it will consider ways to give them a piece of the action. Those discussions are expected to be at the forefront of the affiliates meeting in New York in May. "We have been partners with ABC for a long time and will continue to explore new ways to build audiences," said Belo Corp.'s President of Media Operations Dunia Shive. At the same time, stations are intensely focused on delivering their own local products, including their Web sites and digital broadcast channels, to grow revenes. Says Clear Channel Television exec Don Perry, "As long as our relationship with local viewers is intact, we're going to be fine." ================================ 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]
