By Jennifer LeClaire MacNewsWorld Part of the ECT News Network
06/09/06 7:56 AM PT
"It's further evidence, if any is needed, that video is increasingly going to the Internet," Inside Digital Media Senior Analyst Phil Leigh told MacNewsWorld. The implications of announcements like this one are profound, he said, because they illustrate how the market is conditioning consumers for video on demand.
In a move to extend its viewing audience, CBS on Thursday announced that a selection of the network's prime time programming is available at Apple's (Nasdaq: AAPL) iTunes Music Store.
CBS already sells episodes of its hit television series "Survivor" and "CSI" on Google's (Nasdaq: GOOG) online video store. Now, it will join ABC, NBC and Fox on the iPod maker's popular Web-based music and video store as well.
The Emmy Award-winning reality series "Survivor," the popular dramas "NUMB3RS" and "NCIS" and top-rated CSI programs: "CSI: Crime Scene Investigation," "CSI: Miami," and "CSI: NY" are ready for download at iTunes.
Reaching New Audiences
The new CBS offerings include episodes from the just-completed 2005/2006 season, and earlier for some series, as well as the upcoming season, which starts in September. New episodes in the fall will be available on iTunes the day after they appear on the network.
CBS tested the iTunes waters before embarking on a prime time strategy. Earlier this year, CBS Sports made the 2006 NCAA Men's Basketball Tournament available on iTunes. Showtime, which is a division of CBS Corp., brought iTunes customers two of its most popular series: "Sleeper Cell" and "Weeds."
"iTunes has proven that people enjoy viewing shows on their computer or iPod, which provides an opportunity to reach new audiences with our hit shows and gives our existing viewers a chance to catch up on missed episodes," said Larry Kramer, president, CBS Digital Media.
Riding the Wave
"CBS is becoming a trend follower here. It appears that the network is taking modest steps. It is something that is inevitable. It's further evidence, if any is needed, that video is increasingly going to the Internet," Inside Digital Media Senior Analyst Phil Leigh told MacNewsWorld.
The implications of announcements like this one are profound, Leigh said, because they illustrate how the market is conditioning consumers for video on demand. Today, viewers may pay US$1.99 a piece for programming, but the future holds highly targeted advertising opportunities.
Adding to the Catalog
iTunes offers over 100 TV shows for $1.99 per episode for viewing on a computer or iPod, and is the world's most popular online video store with over 30 million videos sold. The site has also sold more than 1 billion songs.
Apple has steadily been adding to its catalog of music and video. Apple added Fox programming in May and the Dave Matthews Band Catalog in April.
Apple has also been making moves to offer exclusive content. In April, iTunes made the Red Hot Chili Peppers "Stadium Arcadium" available for digital pre-order.
"The CBS announcement is good for Apple because it's another reason to use iTunes as opposed to brand X. The battle here is to become the start-up page for media. That would be a big advantage for Apple," Leigh concluded.
MTV, Microsoft Get Urge to Sell Music Online May 15, 2006
Apple's iTunes is the music provider Microsoft and MTV want to beat. Since the store was introduced in 2001, it has sold more than 1 billion songs through its a la carte business model. iTunes -- an endeavor in which Apple barely breaks even -- has propelled Apple's iPod product line to icon status.
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