Warner Bros. to Let Local TV Put Sitcom on Web

IN A FIRST, WARNER BROTHERS TO LET LOCAL TV PUT SITCOM ON WEB
[SOURCE: Wall Street Journal, AUTHOR: Brooks Barnes brooks.barnes@wsj.com]
In a groundbreaking move for the TV industry, Warner Bros. will allow local TV stations that buy reruns of the comedy "Two and a Half Men" to stream the episodes on their Web sites. The initiative is the first time local TV stations will share in the migration of TV shows onto the Internet. Warner Bros.' move is a sign that the TV industry is beginning a broader embrace of digital technologies. Major TV studios have been reluctant to allow hit shows to be streamed online for fear it would cannibalize the money they make from sale of reruns or DVDs. The only exceptions have been in cases where studios and networks fall under the same corporate umbrella, which was the case with ABC. Warner Bros., a unit of Time Warner Inc., is the biggest supplier of primetime shows to the major networks. The move is sure to have ripple effects. Once "Two and a Half Men" reruns are available on station Web sites, other shows sold into the rerun syndication market may follow. Warner Bros. will benefit as well. The studio will likely be able to charge stations more for the reruns of "Two and a Half Men" than it might have otherwise. Stations that buy "Two and a Half Men" will share their online ad revenue with Warner Bros on a 50-50 basis. Warner Bros. said it will also control how the episodes are streamed to protect against piracy and to limit viewing by certain geographical area. Mr. Rosenblum's plans call for stations to stream five episodes of "Two and a Half Men" on their Web sites at a time; the episodes will consist of the previous week's five aired installments. The episodes will be free, available on demand and supported by advertising. A 15-second video commercial that can't be skipped will run at the beginning of each episode.
http://online.wsj.com/article/SB114704748966046240.html?mod=todays_us_pa...
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