The Storm Within: Capitol Tests Localized Net Streaming

This is a controversy waiting to blow up: the affiliates versus network push and pull has been on since the beginning of this model in U.S., but this issue will bring in a lot more friction than ever before.

We mentioned the WSJ story last night on this, where affliates want a piece of the digital action: offering downloading and streaming of hit shows on their own local websites. Now Raleigh, N.C.-based Capitol Broadcasting, the most powerful of CBS affiliates, is partnering with tech firm Decisionmark to demonstrate the ability of a broadcast station to stream its programming over the Internet while limiting its availability to its local TV market.

Dubbed the “Apollo Project” and launching today at WRAL Raleigh, the test will showcase same sort of signal-reception information that Decisionmark currently provides to broadcasters and DBS operators for compliance with the Satellite Home Viewers Act limitations on the importation of broadcast signals.

It is a credit-card-matching with-zip-code based verification process.

NewsObserver: The pilot stage is limited to WRAL “friends and family.” The next phase, which will begin in two-and-a-half to three weeks, will extend participation to local viewers.

But even during the second phase, the only local programs available on WRAL’s Web site will be local news — which already are available over the Internet — since WRAL doesn’t have the necessary rights for CBS shows.

Capitol has contacted CBS about offering network programming in the WRAL trial, but has yet to receive permission due to copyright concerns.

Company release: The live streaming will be free, but for a fee, viewers will be able to download programming to watch later.

Staci adds: The coincidence of today’s annnouncement from CBS about hosting its own pay download service for “Survivor” — and a report of cutting affiliates in on some of that expected revenue — is striking. An exec at CBS told me today: “This is a big one, particularly because it’s the first, and there is no partner to share revenue with.” That could give the network room to cut the affiliates in for more. And a DIY solution could be parlayed into localized download stores for affiliates with a finder’s fee or rev share for delivering buyers.
Related: Anytime, Anywhere Has Its Limitations

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