The two entertainment companies have signed a deal that will give streaming rights for shows over two years to each of the firms. ABC will stream Warner Bros. TV during the first year as a non-permanent offer. The second year of the deal, Warner Bros. TV will be able to offer those episodes as downloads and DVD box sets as well as non-permanent online streams.
Disney Media Networks co-chair Anne Sweeney was quoted in the Daily Variety say, “This speaks to the larger digital strategy we launched two years ago with the iTunes store, and a full year ago with the ABC.com player.”
“This provides an opportunity for our studio to tap into the ad-supported marketplace much sooner,” said Bruce Rosenblum, Warner Bros. TV Group prexy.
ABC will keep ad revenue that is generated on the player streaming Warner Bros. content in year one. In year two, Warner Bros. TV will keep the ad revenue as well as revenue from downloads, but will brand downloads from ABC and encourage users to redirect back to the network site.