A very good overview story of the issues involved: All the networks are closing in on VOD launches within the next year, as talks between broadcast networks and cable operators to bring prime-time entertainment shows on VOD continues, writes MediaWeek.
There’s a strong chance that some networks could launch on-demand services on some systems as early as next summer and almost certainly by the start of the 2006-07 season. What’s fueling this new sense of urgency is the broadcasters’ desire to come up with a new revenue stream as the costs of producing scripted shows continue to soar.
How high a priority is it? Disney CEO Bob Iger recently met with Comcast CEO Brian Roberts, says the story, to see what needed to be put on the table to get a VOD deal done between the No. 1 cable operator and Disney-owned ABC. Meanwhile, CBS has worked out the rights issues: the network worked language into its deals for shows that premiered last year or this season that spells out how VOD revenue would be split among the studio, show talent and the network.