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Chronicles

The story behind the story

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Exclusive: NBC Launches TV Downloads Service

NBC Direct, the free service from NBC that lets you download full episodes of The Office, 30 Rock, Scrubs, Heroes and more, has gone live on the NBC site.  —  Currently in beta, and originally scheduled to launch in October …

Mashable! Sean P. Aune

Context & Ripple Effects

This launch closes out a decision NBC made two months ago, when it severed its iTunes distribution deal and said it would sell and give away its shows through channels it owned instead. The plan arrived alongside Hulu, the News Corp joint venture that went live on 29 October 2007, which put NBC in the odd position of running both a shared portal and a proprietary download client at the same time.

The beta going live matters because it is the first test of whether a network can keep the audience relationship itself rather than rent it to an aggregator. Rival networks are watching closely — ABC has been handing out free episodes online through AOL since September, so direct-to-consumer distribution is no longer a hypothetical. NewTeeVee had already flagged the strategic wrinkle when the service was announced, noting unconfirmed questions about what NBC's own VOD play means for its role in the Hulu venture.

First-order effects

  • Viewers can now download full episodes of The Office, 30 Rock, Scrubs and Heroes free from NBC's own site within a week of broadcast — no Apple storefront in the middle, with NBC setting terms and keeping the viewer data.
  • NBC's distribution economics shift immediately: every download served by NBC Direct is inventory NBC previously licensed out, converting a wholesale revenue stream into a direct advertising and audience asset.

Second-order effects

  • Competing networks face pressure to match the free-download window — ABC's AOL arrangement shows the template spreading, and any holdout risks ceding the early-adoption online audience to peers.
  • News Corp now co-operates a flagship video property whose biggest supplier is also building a competing front door, sharpening the governance question over where NBC's best content lives and who monetizes it.

Third-order effects

  • If networks conclude they can run their own download and streaming endpoints profitably, TV distribution fragments from a few aggregator storefronts into per-network walled gardens — reversing the consolidation logic that made iTunes and, shortly after, Hulu attractive in the first place.
  • The week-long free window establishes a broadcast-plus-catch-up model as the default release pattern, pushing the industry toward treating the linear airing as an ad for the digital copy rather than the product itself.

The trend: Broadcasters are moving from licensing their catalogs to third-party aggregators toward operating their own direct-to-viewer download and streaming platforms, with ownership of the audience relationship becoming the new battleground between networks and distributors.