Disney nears VOD deal with Comcast

Filed in archive Video on Demand on November 21, 2006

Comcast has wanted prime-time television programs for more than two years for its video-on-demand service. It even tried once to acquire Disney in 2004, in large part, to gain access to its content.

Today, it is about to land a deal with Walt Disney Co. for such shows as "Desperate Housewives" and "Lost," people familiar with the matter say. It also gives Comcast rights to use Disney promotional content on its high-speed Internet portal.

Whichever shows are provided on VOD, ABC will allow them to be shown free. This should include a wide range of programming from such Disney cable networks as ESPN, the Disney Channel, and Toon Disney.

According to the Wall Street Journal, disney movies will also "be made available for a fee on Comcast's on-demand service for the first time, including 'Pirates of the Caribbean: Dead Man's Chest' and 'The Guardian' ... [and that] Disney has agreed to release some of its movies to Comcast as early as 15 days after the release to retail stores,... making it one of the earliest on-demand release dates."

Initially, the ABC on-demand content will be available only in those markets in which Disney owns the ABC station. Other affiliate owners have been concerned that offering prime-time shows on demand would cut into the audience of the programs during their regularly scheduled hours, eating into their ad revenue.

Disney is the third major network to make some of its prime-time content available to Comcast's on demand service. CBS did so a year ago, and NBC followed in March. Both of them initially charged viewers 99 cents to view an episode. In September, CBS changed its strategy and began making the content available for free with inserted advertising.