Fox has struck a deal that will allow more than 200 affiliates to begin streaming shows on their websites, as well as to start selling ads against them and selling them for download. This is the first time affiliates will be offering shows for free and for sale on their sites.
The agreement builds upon a previous deal under which affiliates received a minority share of revenues from content distributed elsewhere. In the new deal, revenue will be shared with the Fox broadcast network, Twentieth Century Fox studio and Fox Interactive Media. About 30% of the ad inventory will be sold as local spots.
Affiliates will now also charge for shows available for download through “Fox on Demand” players, and will see a share of the revenue generated that way. The players will begin to appear on affiliates’ websites at the end of March.
Fox is currently the only network selling prime time programs on its or its affiliates websites. They will continue to offer streaming as well, due to uncertainty about which distribution models will result in returns.
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