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Fox Logs On
Fox might be coming late to the Internet party, but it knows how to make an entrance.
The network said Thursday that it planned to start making its hit programs such as American Idol, The Simpsons and 24 available online and through video-on-demand services the day after they air.
Though Fox has lagged behind the other networks in taking the step to make its shows download-friendly, its plan is different in that it plans to share the revenues generated by the move with its 187 affiliate stations, something rival nets ABC, CBS and NBC do not do.
Because of Fox's partnership with its affiliate stations, it will be able to make a greater chunk of its content available for download, whereas the other networks are limited by their current arrangements with their affiliates as to how many shows they can put online.
ABC, for example, was the first to put shows such as Lost and Desperate Housewives on the Web, but the network's relationship with its affiliates prevents it from making more than 25 percent of its content available through other outlets.
TV station owners who have long enjoyed the exclusive right to broadcast new shows are concerned that with more people turning to the Internet for their entertainment needs, ratings will fall, thereby cutting into ad sales.
Fox has spent the last several months negotiating with its stations, eventually striking a six-year deal that allows it to use six hours of programming initially. By the third year of the contract, the network will be able to make 100 percent of its primetime schedule available.
As an added incentive, Fox might make some shows available for download through local affiliate Websites in order to help drive its traffic.
Under the terms of the agreement, the stations will continue to chip in on the $713 million Fox must pay the National Football League for broadcast rights each year.
"This deal provides us with maximum flexibility to make our content available across all of the different new-media opportunities," Peter Levinsohn, president of digital media for Fox Entertainment Group, told the Los Angeles Times. "And what's really great about this deal is that our affiliates will be partners with us, so our relationship will be substantially more collaborative."
The network is reportedly close to finalizing the details, and could have its shows online within a few weeks.
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