Monday, April 10, 2006

Disney to give away shows online

Yes, on the one hand, MovieBeam. On the other hand, Disney has just done something of seismic consequence for the way we get our entertainment. Media man Jeff Jarvis says:

Not very long ago at all, the networks would not have dared to do this for fear of pissing off their distribution channels: station affiliates, cable MSOs, and even retailers for the DVD market. But now the force of change on the internet is so great that the networks are facing a choice of pissing them off or dying. They are choosing the former. I’d sell your cable stock, by the way.

But what does this mean for advertising?

TV is grabbing a share of online advertising by redefining TV as both broadcast and broadband. Advertisers have always been more comfortable spending big money on TV. Now they can continue to spend their money with those familiar players and get broadband, too. And TV is doing this so as not to lose money to other media even as broadcast — and next, cable — shrink; this is how they rescue upfront. And if TV succeeds at holding advertisers’ attention and money, other players — online companies, magazines, newspapers — may not be able to break in. This an effort for both networks and ad agencies to keep ahead.