Disney to Offer Free Shows Online

Walt Disney Co. plans on rolling out a new addition to its Web site on April 30 where viewers can watch Disney and ABC shows for free. According to the Wall Street Journal (subscription required), The Disney theater will feature commercial-laden television shows like Desperate Housewives and Lost that you can watch online, but not download to your computer.

Viewers will be able to fast forward and rewind shows, but won't be able to skip past the commercials. The service will start with ABC programming available through the ABC Web site, and Disney Channel shows will be added to the Disney Web site some time in June. Disney's Soapnet channel will also start offering online shows on its Soapnetic Web site starting April 17.

Disney already offers ABC and Disney Channel programs on Apple's iTunes Music Store (iTMS), but this new venture isn't likely to impact sales there. Although Disney theater shows will be free, and cost US$1.99 each at the iTMS, the free programming can't be downloaded and played on an iPod. Viewers on-the-go will still have to purchase their shows.

The DVD resellers are the most concerned about Disney's new service. Companies like Wal-Mart fear that fewer consumers will purchase TV programming on DVD. Affiliate stations are also concerned, complaining that their revenues will be undercut even more than they already are by the iTMS.

In the long run, however, the Disney theater may have an impact on Apple. Disney hopes to eventually add the ability to download its programs for a fee. One pricing idea includes offering add-free shows for $1.99, just like the iTMS, and versions with fewer ads than the free streaming offerings for $0.99.

There is no word yet on whether or not Disney's new service will require a specific Web browser, or if it will be limited to only one operating system for viewers.



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