The Dish-Disney deal announced late Monday that would allow the satellite provider stream content over the Web could end up providing a template for future deals with other networks and media companies.
Under the terms of the agreement, Dish will be allowed to one day provide Netflix-like OTT streaming of Disney programming, including content from ABC, ABC Family, Disney and ESPN, rather than putting a satellite dish on a customer’s roof.
ABC programming would also get a three-day exemption from Dish’s ad-skipping Hopper service, in exchange for the network dropping its litigation over the ad-zapper.
The deal marks an important win for Disney, since broadcasters are keen to protect that three-day window when advertisers pay up for viewers.
While the Dish-Disney deal may represent a template for the future, that template looks a lot like traditional cable TV, wrote Re/Code’s Peter Kafka.
“If Dish does launch a Web TV service, a lot of people are also going to be disappointed. Because it’s not going to be the Web TV service of their dreams, where they can cherry-pick a handful of TV channels they want, ignore the rest and save a ton of money,” Kafka wrote. “If Dish — or any other big player, for the foreseeable future — is going to sell TV on the Web, it’s going to look a whole lot like the pay-TV services that exist today: You’re going to have to buy a bunch of channels, whether or not you watch them. And you’re not going to save much money.”
CBS boss Les Moonves also poured a bit of cold water on the deal, calling it “win-win” for both companies, but saying “it’s still not quite enough for us.”
Financial terms of the Dish-Disney pact were not disclosed by the companies.
Both companies said they would explore new advertising models, including dynamic ad insertion.
As part of the agreement, Dish customers would get access to the Disney family of VOD apps for the first time, including WatchESPN, Watch Disney, Watch ABC Family and Watch ABC.
Read More: Re/Code, Deadline, TV News Check, LA Times
Brief Take: Networks and providers have to think outside the box to meet rapidly changing viewer behavior. The Dish-Disney deal shows that there are ways to satisfy viewer demand for more flexible viewing options on new platforms, while satisfying a company’s need to protect the bottom line.
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