Why would Disney do this?

 
By Stacy April 11, 2006



Disney, ABC's parent company, has announced that it will offer shows for free online veiwing starting in May. I don't exactly where or for how long this will be offered. Some articles say it is a test and will be available through June, others claim it is a new service. All the web content will be supported by advertising, so there might still be those who want to download from iTunes simply to have no commercials.

The web is all abuzz with this and I see Sherri wrote it up, too.
But my question is, why would Disney do this?

As the following exerpt explains the strength of the Internet is changing how advertising and television work:

The Walt Disney Company will attempt to stem the flight of advertisers from television by offering its top TV shows on the web for free, but with skip-proof advertising, the company said Monday.

The 50-year-old relationship between television and advertising is increasingly showing signs of wear as young people in particular spend more time on the web, or playing video games, or watching video on mobile devices, and less time in front of the TV.

The TV audience is also being segmented as different demographic groups watch different shows. That segmentation is making it more costly for advertisers to reach a wide audience.

Read the full article.

I think this is great for online viewing and I applaud Disney for trying to adjust with the technology. My only complaint is for them to wait until all the shows have concluded their seasons, so really they have nothing to lose, but that might be the reason for this move.

Too many companies are being timid and not embracing this medium and are instead fighting to keep the status quo. Nobody wants to be left holding an 8 track player, when the competitions got an iPod.