In separate announcements made today, both the NBC and CBS broadcast networks announced they will being offering viewers the opportunity to pay $0.99 per episode to watch selected primetime broadcast and cable programming within hours of the program’s first broadcast.
NBC’s deal is with satellite operator DirecTV, while CBS will be working with cable provider Comcast. The networks’ sudden actions to modify the traditional broadcast television business model is largely seen as a response to ABC/Disney’s recent deal with Apple Computer to make episodes of some of its popular shows available ad-free via the iTunes Music Store within a day of original broadcast. However, digital versions of ABC shows like Lost and Desperate Housewives sell for $1.99 apiece via iTunes; NBC and CBS plan to offer on-demand episodes for $0.99 apiece.
NBC and CBS may now be racing to racing to catch up to ABC, and could represent the first in a series of new business efforts aimed to put network programming on as many non-television devices as possible, possibly including gaming devices, portable media players, and mobile phones.
CBS programming to be made available for on-demand purchase via Comcast will include episodes of CSI,NCIS,Survivor, and The Amazing Race. Buyers will be able to view the episodes anytime they like for up to 24 hours from the time of purchase, and high-definition version of CSI and NCIS may be available in some markets. On-demand episodes should become available in early 2006; episodes will include commercials which aired as part of the original broadcast.
NBC programming to be made available via DirecTV will include two components of the network’s Law & Order juggernaut (CI and SVU), Surface, and The Office but also material produced for its USA and Sci-Fi cable networks, including original shows Monk and the revived Battlestar Galactica. NBC programming will be available in an ad-free format for on-demand purchase only to DirecTV subscribers who purchase the new DirecTV Plus Interactive DVR, which will be available in early 2006.
