Warner Bros. learns hard branding lesson

Warner Bros. was trying to be a bit experimental. They were going to try selling new shows they were producing such as Studio 60 on the Sunset Strip and others on their own online retail site. They hit a speedbump in the shape of at least four broadcast networks, though. Seems those networks believe people have such strong associations with the network they're shown on that they didn't want people to be able to find them on the studio's site. This disagreement may mean that unless a deal is hammered out Warner Bros. new shows won't be available on digital platforms at all.

If you were wondering when you should start the deathwatch on the traditional network distribution model, this is the time. It's only a matter of time before studios begin to realize they've been subject to the whims of the networks for too long and decide to go it alone. Digital distribution, with its low cost/high reward structure, may just be the stake in the heart of the networks.

Think about it. The studio produces the show and sells ad time around the show just like the network would, with the exception that they get to keep all the money instead of it being split with the studio. They then sell the show on their own site or - potentially - through iTunes and other established retail outlets. Viewers get the choice of a free version with the ads or a $1.99 ad-free version. The show is promoted via online advertising. Offer the first two episodes free as a TiVo "Showcase" or other DVR/VOD channels. You've just created an interested base of viewers who either will view an ad-supported version or pay for an ad-free one. And you've proven that you don't need to be at the mercy of programming schedules. The show is there for people when and where they want to see it. Even if the audience isn't big, it is powerful and specific - two words advertisers like to hear.

Existing agreements will likely have to be rewritten or need to expire for something like this to be tried, but when that happens, the networks will likely be wetting themselves. The writing is on the wall for them to be factored out of programming viewing.