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Internet land grab for on-demand entertainment consumer

September 12, 2006, was a banner day for competition in the interactive entertainment space. NBC, Apple and AT&T announced various products, services and plans to claim their rightful shares of the interactive consumer entertainment market.
Written by Donna Bogatin, Contributor
September 12, 2006, was a banner day for competition in the interactive entertainment space. NBC, Apple and AT&T announced various products, services and plans to claim their rightful shares of the interactive consumer entertainment market.

In-brief, below, the high-powered power plays for ownership of the on-demand, interactive entertainment content consumer.

Company provided information excerpted from press releases.

NBBC (National Broadband Company)
nbbc Creates Digital Marketplace to Aggregate, Monetize and Distribute NBC Universal and Premium Third-Party Content Across Vast Network

Model: Online b-to-b digital video syndication.

Rationale: Website owners earn incremental ad revenue with selected third party video programming, and advertisers reach an expansive audience across nbbc's premium network.

Benefits: Participants receive a share of advertising revenue and web users enjoy a free, robust ad supported video experience.

The “Spiel”: Jay Ireland, President of the NBC Universal Television Stations, "This is a radical departure from the traditional media mindset, because it liberates content and takes it outside of the walled garden. Our goal is to make our content, and that of our partners, available to as many people as possible and offer that audience to our valued advertisers."

Apple Announces iTunes 7 with Amazing New Features; Disney, Pixar, Touchstone & Miramax Movies Now Available on the iTunes Store

Model: Online consumer sale of downloadable movies.

Rationale: Dick Cook, chairman of The Walt Disney Studios, “Steve Jobs and Apple have consistently demonstrated that they have their finger on the pulse of today’s audience with regard to legal downloads of music and television shows, and our presence on iTunes will now allow us to deliver Disney’s films in this popular and convenient format. Not only are we proud to be expanding our association with Apple, but we feel that this new venture meets a growing demand for movie viewing that will ultimately expand the market for our films.”

Benefits: Movies will become available on the iTunes Store the same day they are released on DVD, with new releases priced at $12.99 when pre-ordered and during their first week of availability, and $14.99 thereafter, and library titles available for just $9.99 every day.

Robert Iger, president and CEO, The Walt Disney Company: “ABC and Disney Channel were the first networks to offer television programming on iTunes, and we’re once again breaking new ground as The Walt Disney Studios becomes the first to debut feature films on the iTunes platform. Disney is committed to providing innovative ways for audiences to enjoy their favorite entertainment content, and our association with Apple is yet another example of how we continue to reach consumers on their terms, regardless the time, location or device.”

The “Spiel”: Steve Jobs, Apple CEO, “Here we go again! First music, then TV shows, and now movies. In less than one year we’ve grown from offering just five TV shows to offering over 220 TV shows, and we hope to do the same with movies. iTunes is selling over one million videos a week, and we hope to match this with movies in less than a year."

AT&T and MobiTV Launch Live TV Subscription Service for Broadband; AT&T Broadband TV Delivers Live MobiTV Content to Consumers Through Wired- and Wireless-Based Broadband Connections; Provides Convenient Window to News, Sports and Entertainment

Model: Mobile television service for broadband users in the United States.

Rationale: Dr. Phillip Alvelda, CEO, chairman and co-founder of MobiTV, “Television is officially available on the PC now and will reach television fans in their home, office, college dorm, at the airport or anywhere they happen to be. MobiTV and AT&T will deliver premium quality content seamlessly across all broadband networks, making entertainment, wireless and technology history.”

Benefits: The browser-based AT&T Broadband TV will enable subscribers to use a computer to access a wealth of live programming while at home, at work, or on the go using wired and wireless broadband technologies, for a flat monthly subscription of $19.99.

The “Spiel”: Scott Helbing, executive vice president, AT&T Entertainment Services, “The AT&T Broadband TV service offers our customers the ability to watch live television programming beyond the TV screen, increasing our capabilities to provide compelling content to consumers who are seeking information and entertainment when, where and on the device they desire. The deal helps further enhance AT&T's broadband service and three-screen initiative by offering differentiated broadband-enabled content that consumers are increasingly demanding.”

NBC, Apple, AT&T join a crowded, but hardly settled, interactive entertainment space: YouTube, Revver, Grouper, Google, Yahoo, AOL, Amazon, Akimbo, MediaZone…


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