The news that ABC will begin streaming full-length episodes of "Lost," "Desperate Housewives" and "Commander In Chief," as well as the entire current season of "Alias," seemed inevitable. After all,
this is the network that had the fortitude and smarts to make a deal with Apple's iTunes to make some of its shows available for the video iPod.
ABC will do a two-month trial of the concept
starting in May. The episodes will be made available on ABC.com the day after they run on TV. Viewers will be able to pause and move between "chapters" in an episode, but not skip ads, which are
technically embedded.
ABC's plan is a way for the network to grab additional ad revenue by creating more inventory--online. It also plays nicely into on-demand content trends. We fully expect to
see more networks make prime-time content available online, following ABC's lead. In fact, these announcements could come in a matter of weeks as networks beat the drum to the upfronts.
In ABC's
case, advertisers for the trial programming run include AT&T, Ford Motor Co., Procter & Gamble Co., and Universal Pictures. The method for ad inclusion includes inserting video ads into the content
and sponsorships tailored specifically to the Web experience.
ABC's move represents one more example of networks trying to chase audiences wherever they are: "None of us can live in a world of
just one business model," said Anne Sweeney, co-chair, Disney Media Networks and president, Disney-ABC Television Group, speaking at The National Cable Television Association show in Atlanta. "This
allows us to learn a different model. And it allows us to take our broadcast advertisers into the space and allows them to experiment."
Meanwhile, Internet advertising keeps growing: Spending on
Internet ads will overtake billboards and other outdoor advertising next year, according to Zenith Optimedia, which revised its forecast. The Web will account for 6.5 percent of all advertising by
2008, up from an earlier forecast of 6 percent in December, Zenith reports. Online ad spending accounted for 4.5 percent of the global market last year.
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