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November 7, 2005 ABC/iTunes Deal Cracks Open The TV Business ModelCable VOD Will Be The Biggest Beneficiary Of The Dealby Jim Nail, Josh Bernoff with Chris Charron, Jennifer Joseph, Tenley McHarg |
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Executive Summary
The iPod video player doesn't matter. Downloading episodes of Lost and Desperate Housewives to computers barely matters. What does matter is the crack in the traditional television business model opened by the Apple/ABC deal to allow consumers on-demand access to current hit TV shows. Unwittingly, Apple is building the proof of concept for the video-on-demand (VOD) business model. Demands by cable operators to put the same deal on the VOD tier, rebellion by network affiliates, and greater availability of niche content will fracture the old business model.
This is an excerpt
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