You have to hand it to Apple. When Steve Jobs sneezes, everyone else falls over themselves to catch pneumonia. Following on from the integration of Disney TV programming with the iTunes store, both CBS and NBC Universal television network announced this week that they would be selling shows a few hours after broadcast at 99 cents an episode through video-on-demand services on cable and satellite. Like Lost and Desperate Housewives on iTunes, the programs
will run commercial free.

The economics of network television are at a fascinating crossroads. The CBS and NBC deal is not really about time shifting, but about the ability to watch ads commercial free. Anyone with a decent DVR can organise their viewing independent of a program guide. As far as ad free viewing goes - you also have to question how much trouble ads are with either an ad skip button or a decent fast forward.

The reality for US TV networks is that they will not be able continuing having their cake and eating it too. Eventually the only advertiser funded programming will be live or event based reality television which continues to prove reisistant to time shifting and accordingly attracts strong advertiser interest. To pun poorly, Drama is another story. Like DVDs, which killed network movie programming as an advertising platform, it is not inconcievable that all drama based TV shows will eventually migrate soley to premium pay channels, VOD and other new media platforms.

The only problem is at 99c - you have to sell a hell of a lot of views to cover your production costs given the lack of advertising revenue and your potential loss of syndicated sales as the distribution model shakes out.