ABC, Cox Bar Ad Skipping in Video on Demand

ABC, COX BAR AD SKIPPING IN VIDEO ON DEMAND
[SOURCE: Wall Street Journal, AUTHOR: Brooks Barnes brooks.barnes@wsj.com]
Walt Disney's two big TV networks, ABC and ESPN, have struck a deal with cable operator Cox Communications to offer hit shows and football games on demand -- but with the unusual condition that Cox disables the fast-forward feature that allows viewers to skip ads. The agreement only applies to programs available on Cox's video-on-demand menu, so it doesn't affect viewers using digital video recorders to fast forward through ads. Nevertheless, it sets a valuable precedent for broadcasters. TV networks have been struggling as audiences erode and ad sales drop because new technology -- including rapidly growing video-on-demand services -- allows viewers to avoid commercials altogether. The deal, expected to be announced today at the National Cable Television Association's annual convention in Las Vegas, could make it easier for the major networks to make their most popular shows available on demand free. Because networks have found it difficult to sell advertising for on-demand broadcasts, most offered only a few shows -- and viewers usually have had to pay a fee of 99 cents per episode to watch those. Broadcasters have been eager to include advertising, however, because they see it as more lucrative than charging for each episode. ABC and other networks are also loath to allow viewers access to shows without any advertising component because they worry it will train them to expect that type of viewing experience all the time. ("Bad. Bad viewer. Watch your commercials.")
http://online.wsj.com/article/SB117859428581995482.html?mod=todays_us_marketplace
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