VOD to the rescue for television

October 7, 2007

Summary of original post on hollywoodreporter:

To combat foreign piracy and to attract younger audiences abroad who, like their American counterparts, want their shows whenever and wherever, they’re increasingly focusing on such new-fangled deals.

Such deals with foreign broadcast partners may not only create a new revenue stream but also keep their traditional output and volume deals with those broadcasters from taking a hit.

Gallic broadcaster TF1 has responded to the increasing illegal Internet downloads by signing a deal with NBC Universal to air episodes from Season 2 of “Heroes” on its VOD site just 24 hours after the original U.S. broadcast (HR 9/26).

Disney-ABC International Television and Channel 4 Finland inked an IPTV VOD agreement to bring hit U.S. network series on-demand to viewers for up to four days after their U.S. TV broadcast.

Beth Minehart, executive vp international new media at NBC Universal International Television Distribution, who was central to the TF1 deal, said that the studio is “actively talking to many people in many markets about similar types of contracts.”

One of the first to raise the red flag to fan-based piracy was Marion Edwards, president of international television at 20th Century Fox, who revealed that this season’s premiere of “Prison Break” was on the Internet within 11 minutes of its broadcast.

Another international executive keeping a close eye on VOD developments is Armando Nunez, president of CBS Paramount International Television, who noted that “broadcasters around the world” are looking to get U.S. programs on the air much faster these days.

“Part of the solution might also be what NBC Universal has done with TF1 and ‘Heroes,’ which might give a boost in dubbed territories where the local-language premiere is still the priority,” he added.

Schlesinger stressed that shows like “Heroes” command an audience that is suited to this model because they are serialized and appeal either to sci-fi fans or to a youth audience that knows its way around the Internet.

“VOD won’t kill piracy, but hopefully as we get more into these rights, people will feel less likely to steal when the same program is available on broadcasters’ own sites.”

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