Editor's note: An earlier version of this article failed to acknowledge the free video-on-demand offerings of CBS and NBC. The article has been updated. The Fool regrets the error.
Video on demand (VOD) really is the future. Now, it comes with mouse ears.
ABC is not the first to the free VOD party. CBS
ABC has been testing the waters in select markets where it owned the local broadcast station, also through Comcast. The Cox deal will spread VOD goodness across the country, no matter who owns what broadcasting partner.
In fact, it even gets better. ABC's local affiliates get to control some of the advertising shown, giving them some incentive to actually market the new delivery option. In tests, 93% of the subjects didn't mind the commercial breaks; they'll be a lot shorter than what's on regular broadcast TV anyhow.
Why should I care?
VOD is a much bigger deal than you think, I think. It lets broadcasters like Comcast and Cox line up a library of fresh and/or back-catalog content from any of the major entertainment producers for customers to enjoy at their leisure and without having to set up cumbersome DVR recordings.
If everything were available on VOD, there'd be no need for a video recorder in your living room. That's the way it should be, and probably will be some day. VOD back-end systems providers, such as SeaChange
The Foolish takeaway
Everybody wins, for real this time. The content consumer gets added convenience and fewer commercials at no extra cost; advertisers will strut their wares to a captive audience that can't fast-forward through the ads and won't have time to get a snack; and the networks stay relevant in an increasingly diverse media environment.
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Fool contributor Anders Bylund is a Disney shareholder and Disney World season pass owner. It's so cool to live an hour away from the park, you know. He holds no other position in any companies discussed here. You can check out Anders' holdings if you like, and Foolish disclosure looks great even after standing in line for hours.