That Pesky DVR Is Now Killing Off Bigger Pieces Of The TV Industry

Anne Sweeney, co-chair of Disney Media Networks and president of Disney/ABC Television Group, says SOAPnet, a cable network devoted to re-airing daytime operas, became obsolete because of the DVR. Viewers who worked all day simply DVR-ed their favorite soaps and watched them in the evening. One doesn't need a network to do that.

CBS and other networks have already proclaimed their chief competition in the weekday 10 p.m. time slot isn't other networks -- it's viewers' DVR machine in full playback mode. You can blame Disney Television for not thinking ahead and doing what all niche cable channels should be doing, creating their own original programming. We are not talking about highlight shows, clip shows, or shows that review the week in soaps. We are talking about original ongoing series. Yes, they are expensive. Kids shows aren't as costly -- especially for those aged 2-7 who have no problem looking at repeat shows. But doesn't the new channel, Disney Junior, provide the same problem with the DVR again? Yes and no. This is about what Disney does best: heavy licensing and merchandising for ancillary income. That can make it a big revenue winner. Another side benefit: Disney Junior can keep to The Disney Channel's business structure: no TV commercials and limited sponsorship. Disney will also get better subscriber fees from cable networks.