If content is king, Comcast Corp. probably feels like it’s staying in the royalty suite at the Disney castle for Thanksgiving after announcing a long-term programming deal with the Walt Disney Co. that gives its subscribers access to a wide array of network content and movies.
The deal brings Comcast, which said it has more than 21 million cable customers, a broad array of Disney's networks and services including: Disney Channel, ABC Family, Toon Disney, ESPN, ESPN2, ESPN Classic, ESPNEWS and increased carriage of SOAPnet. In addition, Comcast will launch ESPN Deportes, a stand-alone Spanish-language sports network.
Comcast has acquired, for $1.23 billion, Disney's 39.5 percent ownership stake in E! Networks. Following Tuesday’s deal, E! Networks, which includes E! Entertainment Television and Style Network, is a wholly owned Comcast entity.
The companies have also agreed to add primetime television programs, cable network shows and Disney movies to Comcast's VoD service.
Demand for On-Demand
While traditional VoD services may not be growing at a particularly rapid pace, the introduction of time shifting, network PVR and mobile video will propel the demand for VoD technology as the number of concurrent, time-shifted streams of video grows rapidly, according to ABI Research. In fact, concurrent VoD streams worldwide will explode from 1.67 million in 2005 to 163 million in 2011, according to the firm.
"Simply put, the need for on-demand technology and concurrent usage of that technology will skyrocket over the next five years,” ABI principal analyst Michael Arden said. “The growing importance of that usage is reflected in a spate of corporate acquisitions this summer, all intended to add extra VoD capabilities to their purchasers' portfolios."
The deals he referenced include Cisco Systems Inc. buying Arroyo Video Solutions, Harmonic Inc. with Entone Corp.’s VoD business and Motorola Inc. announcing plans to buy Broadbus Technologies.
Demand for on-demand audience stats as compared to broadcast has not been lost on those who research viewing habits. Nielsen Media Research Inc. announced plans earlier this week to launch such a VoD service in a matter of weeks.
A First for Disney
Disney said the Comcast deal marks the first time ABC broadcast programs will be available on VoD by any cable company, several ABC primetime series will be offered free by Comcast in ABC-owned television station markets. The companies also said they will work together to make promotional content from the Disney-ABC Television Group available on Comcast's portal.
"This agreement reflects our ability to distribute content on multiple platforms and signals another first for Comcast and Disney as we continue to explore the evolving possibilities of digital technology,” said Comcast Chairman and CEO Brian Roberts. He called putting Disney, ESPN and ABC's popular content on Comcast VoD is “a watershed event for both companies.”
Comcast VoD Goes Primetime
ABC primetime and ABC News programs will be available free to Comcast's digital cable customers in the following markets served by ABC-owned stations: New York (WABC), Philadelphia (WPVI), Chicago (WLS), San Francisco (KGO), Houston (KTRK), Fresno, Calif. (KFSN), and Flint, Mich. (WJRT).
Beginning with the fall 2007 season, on-demand episodes of “Desperate Housewives,” “Lost” and two yet-to-be determined primetime series will be available the day after their network broadcast to Comcast consumers in the same owned-station markets.
“Desperate Housewives” and “Lost” also will be available in HD VoD for Comcast customers. Available in the same markets will be “World News with Charles Gibson,” “Nightline” and “This Week with George Stephanopoulos.” Under the agreement, Comcast also plans to add certain shows from Disney Channel, SOAPnet, Toon Disney and ESPN libraries to Comcast's VoD lineup in markets where those channels are offered.
More VoD Movies
Under the movie VoD agreement, Comcast digital cable customers will be able to order movies newly released on VoD from Walt Disney Pictures, Touchstone and Miramax for $3.99 each, while a library of titles will be available for $2.99 each.
Comcast said it already has library of more than 8,000 VoD programs per month, including hundreds of hit and classic movies, music videos and specials, kids' shows, sports highlights, news and informational programs. The cableco said its customers have watched more than three billion VoD programs since 2004, including one million HD VoD programs since September.
Comcast Corp. www.comcast.com
Walt Disney Co. http://disney.go.com
