iPod Video-ABC Deal Issues: Affiliates Reactions; DVD Sales

Some interesting issues are arising out of the Apple ipod video deal with ABC-Disney: fist is the reaction of affiliates, second is how the people involved with the shows will be paid, and third is how does this affect TV show’s DVD sales:

Affiliates ILooks like the ABC affiliates are not that worried about ABC’s deal with Apple on video iPod, where the next-day downloads of hit TV shows are available. This AP story says that the network’s affiliates were not told the deal was in the works before Wednesday, and they’re the people most likely to be concerned about its impact.

Leon Long, chairman of ABC’s affiliate board and general manager of WLOX-TV in Biloxi, Miss., wasn’t worried. He said if viewers have the choice of watching “Desperate Housewives” on their wide-screen TV with surround sound or a two-inch iPod screen, they will almost certainly watch it on TV.

NBC has also had talks with companies like Apple about new ways of distributing programming. CBS had no immediate comment on ABC’s announcement.

Variety: ABC’s Anne Sweeney said payment to producers, thesps and scribes associated with the shows being uploaded to iTunes will be handled in manner that “is close to the DVD model.” What’s more, there aren’t any messy network-studio battles to contend with since ABC and Touchstone are both part of the Mouse House. Industry observers are already predicting much bigger headaches when it comes to shows produced by studios and nets from different congloms (think frosh comedy hit “My Name Is Earl,” produced by 20th for NBC).

On Cannbalization: “We don’t see any of these platforms cannibalizing each other,” she said. “It’s a very different experience watching ‘Desperate Housewives’ Sundays at 9″ than on an iPod.

Reuters: The move raised questions about whether instant access to current prime-time shows might diminish their future value in the burgeoning DVD market and in broadcast syndication. David Miller, a media analyst for brokerage Sanders Morris Harris, said the added distribution outlet “increases the value of the content” and complements Disney’s overall strategy. “Disney has always taken the attitude that they want to be able to distribute their content to anyone, any time … no matter how they want to consume it,” he said.

Mark McGuire, Gartner: The availability of cheap downloads of single episodes could help drive demand for DVD boxed sets, giving more consumers a chance to sample a show before deciding whether they want to pay for an entire season.

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