Disney-owned ABC is marching forward with its revised online video strategy and will soon attempt to distribute its primetime shows on AOL with no extra charge. The effort to push forward quickly is partially due to competition from rival CBS, which created its own online distribution network this past spring, and also from NBC Universal, who has claimed that they will start testing a desktop video download service next month. The ABC/AOL agreement includes the following:
1. sharing of ad revenues
2. in order to protect ABC affiliates who could possibly lose broadcast viewers to the Internet, the network will be geo-targeting ads, along with three national ads for each hour of programming
3. ABC's shows will be available to the public on AOL on the day that follows the initial broadcast; four episodes of each show will be available to watch at any time
This ravenous effort on ABC's part has reminded me how competitive the "powerhouses" like NBC Universal and Walt Disney really are with each other. If one of them has a technological breakthrough, the other one better not be too far behind in order to retain their whole audience.
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