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...Disney Co., the parent company of the ABC network, cut a deal with iTunes to sell episodes of shows such as Lost and Desperate Housewives for $1.99 apiece. A few weeks later CBS and NBC Universal struck deals to sell shows, hours after their airing, via video on demand (VOD) for 99¢ a pop from cable company Comcast and satellite company DirecTV, respectively. (The CBS service debuts in January; NBC's, early next year...

Author: /time Magazine | Title: Television: Wanna Buy a Slice of Sitcom? | 11/21/2005 | See Source »

Zucker says advertisers shouldn't be nervous; VOD, he believes, will only bolster the shows on-air. "If you're busy on Tuesday night and miss an episode of The Office, here's the easiest way imaginable to catch up," he says. "Actually, by doing that, you become more hooked on the series and will likely watch it more on the network...

Author: /time Magazine | Title: Television: Wanna Buy a Slice of Sitcom? | 11/21/2005 | See Source »

...Forrester estimates, for example, that Desperate Housewives earns ABC about 45¢ in advertising per viewer per episode, but clears the network about triple that when sold through iTunes. So if you buy the show, you are literally three times as important as someone watching for free. If watching VOD became widespread enough, the business model of "free" TV would be a little more like HBO's--in which what counts is not getting a lot of people to watch your show but getting a relative few to like it so much they'll pay for it. This is why cable...

Author: /time Magazine | Title: Television: Wanna Buy a Slice of Sitcom? | 11/21/2005 | See Source »

...channels, a production company could even try to sell a canceled cult show directly to the public. Nothing like this will happen immediately. It took DVD years to take off, but once it did, DVD sales of Family Guy were so huge they prompted Fox to uncancel it. Could VOD do the same? "It's conceivable," Zucker says. "I could envision that happening...

Author: /time Magazine | Title: Television: Wanna Buy a Slice of Sitcom? | 11/21/2005 | See Source »

...overestimate the challenges posed by ad skipping. At least 6.4 million households now have digital video recorders (DVRs) like TiVo. Cable and satellite providers are pushing the technology hard-40% of households are expected to have DVRs by 2009-while the cable guys are also pitching video on demand (VOD), another technology consumers use to watch content on their own schedule. "VOD is the ultimate worry for us," says Jon Mandel, chairman of the ad-buying firm MediaCom US. "If 25% of people watch TV totally randomly, it becomes much harder to buy, sell and target...

Author: /time Magazine | Title: Prime-Time Peddling | 5/24/2005 | See Source »

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