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WatchABC is coming - but not for everybody

K

KeithE4

Like WatchESPN, Disney's new WatchABC will be available only to cable subscribers after a 6-week trial period in NY and Philly. It also will only be available in areas where ABC has reached deals with both the local cable company and its local affiliate.

From the article: "Pay-TV subscribers only: Even if you're a viewer in a Watch ABC area, you can't exactly watch for free. After a six-week no-cost trial in New York and Philadelphia, only viewers who pay for cable or satellite subscriptions will be able to log into the app -- even though ABC, like all broadcast content, is free with an antenna.

Like the affiliate model, this pay-TV setup requires ABC to work with cable and satellite providers. Deals are in place with providers including Comcast (CMCSA), Cablevision (CVC, Fortune 500), Cox and AT&T (T, Fortune 500) U-Verse.

A rep for ABC, owned by Disney (DIS, Fortune 500), wouldn't say explicitly why the company opted for a pay-TV setup: "We're looking to help cable providers add value for their subscribers," said VP of communications Karen Hobson.

It could be ABC's way of appeasing cable and satellite companies, who pay broadcasters a per-subscriber fee to air their content."

I think we can read this as Disney wanting to make sure that their $multi-hundred-million per month cash cow is not disturbed in any way. Also, at least for the time being, forget the word "satellite." Disney has yet to work out a deal so that Dish and DirecTV subscribers can access WatchESPN, so don't hold your breath waiting for WatchABC if you're "on the bird." This service is cable-only.

And if you are antenna-bound, with or without internet? You're SOL. Disney is 100% married to the cable business model.

Link: CNN Money
 
And, it's only available on the iOS platform, shutting out Android devices and Apple-haters like myself. So no, it definitely is not for everybody.
 
According to this Forbes article from November 2012, Disney's cable networks accounted for 57% of their total operating income. ESPN's share of that is 2/3 subscriber fees and 1/3 ad revenue. So there's no wonder why Disney is married to this business model.

Link: Forbes
 
Don't worry, you might not need WatchABC if your station has a mobile feed (like KOMO in Seattle). Hopefully this won't discourage affiliates from putting out more mobile feeds.
 
Morgan Wick said:
Don't worry, you might not need WatchABC if your station has a mobile feed (like KOMO in Seattle). Hopefully this won't discourage affiliates from putting out more mobile feeds.
Click to expand...

KOMO and other ABC affiliates with mobile TV will be interesting to watch. If Disney works out a deal with the local cable companies but KOMO nixes it because it would cut into their service, what then?
 
KeithE4 said:
Morgan Wick said:
Don't worry, you might not need WatchABC if your station has a mobile feed (like KOMO in Seattle). Hopefully this won't discourage affiliates from putting out more mobile feeds.
Click to expand...

KOMO and other ABC affiliates with mobile TV will be interesting to watch. If Disney works out a deal with the local cable companies but KOMO nixes it because it would cut into their service, what then?
Click to expand...
I don't think KOMO would see WatchABC as cutting into their existing mobile service. If anything, it could be the other way around.
 
Morgan Wick said:
KeithE4 said:
Morgan Wick said:
Don't worry, you might not need WatchABC if your station has a mobile feed (like KOMO in Seattle). Hopefully this won't discourage affiliates from putting out more mobile feeds.
Click to expand...

KOMO and other ABC affiliates with mobile TV will be interesting to watch. If Disney works out a deal with the local cable companies but KOMO nixes it because it would cut into their service, what then?
Click to expand...

I don't think KOMO would see WatchABC as cutting into their existing mobile service. If anything, it could be the other way around.
Click to expand...

Unless Disney prevents KOMO, or any affiliate, from running ABC programming on any platform other than their OTA and local cable & satellite channels. The way the announcement was worded makes me think that such shenanigans wouldn't be out of the question.
 
KeithE4 said:
According to this Forbes article from November 2012, Disney's cable networks accounted for 57% of their total operating income. ESPN's share of that is 2/3 subscriber fees and 1/3 ad revenue. So there's no wonder why Disney is married to this business model.

Link: Forbes
Click to expand...

how much does ABC generate?
 
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