As free as a mouse
One of the more interesting developments in this shortened trading week was Disney's (NYSE:DIS) announcement that it would be making many of its hit shows from ABC, Disney Channel, Soapnet, and ABC Family networks available as free ad-supported streams the day after they air.
Disney is emphasizing that this is only a two-month free trial. After that it will be able to chow down on the data to see whether it was able to grow ad revenues for the company without sacrificing network ratings and ad-free premium downloads through Apple (NASDAQ:AAPL).
It's a model that could revolutionize viewing habits -- especially now that primetime has become anytime. In a way, we've had that power all along. From the most rudimentary of VCRs to the high-end TiVo (NASDAQ:TIVO) digital video recorders, we've always had the power to timeshift our content. But this is pretty effortless. And unlike VCRs or DVRs, you don't need to plan to record a show beforehand.
The real mystery is whether consumers will respond in significant sums. Sitting through an hour-long show from the comfort of your living room armchair is one thing. Having to put up with ad blocks while squinting at your computer may be something else.
So the timing of Best Buy (NYSE:BBY) and Hewlett-Packard (NYSE:HPQ) couldn't be any better; the two companies are teaming up to roll out a next-generation home media entertainment system this summer. A recent story in the Wall Street Journal detailed the Internet-friendly television sets, and sales could be pretty brisk if they are able to integrate network freebie offerings into their DNA.
Watch this space. And if you don't, you can still come back and watch it later.
Banking on Sam Walton
The first round of hearings in Wal-Mart's (NYSE:WMT) quest to be granted a banking license took place today. Both camps feel they came out pretty well. The bankers fear that a penny-pinching Wal-Mart would destroy their margins and Wal-Mart claims that it only wants the license so that it can process credit and debit card payments like rival Target (NYSE:TGT). Both arguments seem to ring hollow to many of us. Rich Smith put it best, describing both parties as disingenuous.
I tend to think Wal-Mart has the strongest argument here -- all it has to do is point to Target's banking license. Still, few companies can stir up a hornet's nest of doomsayers the way gargantuan Wal-Mart can. It will be an interesting case to watch, but history is on the side of opening up industries to competing forces. You've seen it in telephone services. You may soon see bankers in the real estate brokerage business and, yes, retailers in the banking business. And, unless I miss my mark, Wal-Mart will get that banking license, then broker real estate, too.
Forget "falling prices" as an in-store slogan. How about falling barriers?
Until next week, I remain,
TiVo and Best Buy have been recommended to Stock Advisor subscribers.
Longtime Fool contributor Rick Munarriz loves to look back, even if it means he falls on his face going forward. He does own shares in Disney. The Foo l has a disclosure policy. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
