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November 08, 2005

Network Execs: "Record the show on your DVR for free, unlimited viewing, or pay us to add some restrictions."

Twin bombshells hit today and just when I was starting to wonder if VOD was going to die a slow death from lack of quality content. But given the ultra-cautious approach and limitations, we cannot categorically state that VOD is off and running. But, when big names find common ground, it just may eventually get us to VOD heaven.

First, NBC Universal hooked up with satellite operator DirecTV with an on-demand service that allows viewers to download prime-time shows commercial free for 99 cents. A few hours later, CBS announced its video-on-demand service through Comcast’s digital cable system.

The CBS-Comcast VOD deal leaves the national commercial spots embedded within the show's programming. That is an interesting placeholder that should keep viewers mindful of the need to let advertisers support the medium just as they have for some many decades. However, I can't help but wonder when the national spots are overrode with targeted ad inserts.

Broadcast networks have experimented with on-demand viewing in fits and starts, mostly offering the content for free through major Internet sites. CBS sibling UPN, for example, premiered “Everybody Hates Chris” on Google, and last year NBC aired the pilot of “The Office” on MySpace.com.

Since satellite does not do VOD too well, their new NBC programs will require DirecTV’s Plus interactive digital video recorder, which is their replacement for the TiVo DVR. DirecTV expects the new DVR to hit retailers next week. CBS’s VOD content will be available starting in January to Comcast’s digital cable customers living in markets with a CBS owned-and-operated station.

I don't think much will come of the NBC-DirecTV deal. Not only does it cost 99 cens but each episode is available a few hours after they initially air but only until the next episode airs. It would make sense for local viewers to use the DVR to tape the episode and watch it when they want.

According to a DirecTV spokesman, the company is talking to other networks and content providers hoping to reach agreements similar to the NBC deal. DirecTV has 15 million subscribers.

In the CBS-Comcast deal, the drama series "CSI" and "NCIS" will remain on the VOD server until the next episode airs. "Survivor," however, will be available as part of a library format through the duration of the shows' seasons. I guess that is a first step, but it too is lacking.

Posted by Martino Mingione on November 8, 2005 05:09 PM

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