NBC, A&E go on demand with DVD

Sign with Amazon's CustomFlix service, offering high-def too

By Jennifer Netherby -- Video Business, 4/24/2006

APRIL 24 | NBC Universal, A&E Home Video and PBS have signed with Amazon.com DVD publishing subsidiary CustomFlix Labs to make their niche TV content available for on-demand disc production.

NBC will make segments from the Today show available through CustomFlix DVD on Demand, while A&E will add more than 1,000 programs including its Biography series and PBS will make Antiques Roadshow, Frontline and Nova available.

The deals come as CustomFlix broadens its appeal to large and small content owners and steps up its services, including offering films in three rival high-definition formats: HD DVD, Blu-ray and Windows Media Video High Definition DVD.

Acquired by Amazon last summer, CustomFlix makes DVDs as customers order them, so that suppliers don’t have to produce more copies than are needed. Up to now, the company has focused on independent filmmakers, allowing them to make their films available on DVD in limited numbers.

CustomFlix is now branching out its offerings to make a broader depth of content available through Amazon. The move comes as Wal-Mart and other retailers are pushing for electronic distribution of DVDs, which would allow them to reduce the space needed for physical inventory while carrying a broader array of titles that could be digitally downloaded and copied to disc in stores.

Amazon VP of worldwide media Greg Greeley said Amazon is hoping to create a new way for studios to keep smaller titles from going out of print and bring out other films and TV shows that wouldn’t make economic sense to mass produce for a traditional release.

“What we’re trying to address is the barriers they have for why they don’t bring some of their great works to market,” Greeley said.

Not only can Amazon make those programs and movies available when a customer places an order, Greeley said Amazon also can reach and target customers who might be interested in niche titles based on their previous purchases.

“This is a campaign by us to help unlock that long-tail selection of video content not available to customers right now,” Greeley said, referring to niche product that tends to sell better online for a longer period of time, thus being dubbed long-tail.

NBC offerings under the DVD on demand deal include the Westminster Kennel Club Dog Show and a compilation of Where In the World is Matt Lauer segments from the Today show.

“Working with CustomFlix enables us to identify key programs, advertise the availability of these programs on DVD and make them available for purchase while the shows are airing,” said Kim Niemi, senior VP of NBC Universal Television Distribution, Video, Music and Product Development. “The ability to offer our viewers a quick and easy method to purchase NBC Universal programming that wouldn't ordinarily be available through traditional DVD distribution is very exciting.”

A&E’s programs available through CustomFlix DVD on Demand include Modern Marvels and Investigative Reports.

"The A&E Home Video library features a wide range of programs and is a perfect match for Amazon.com's huge customer base, especially given Amazon's ability to match diverse programs with specific audience interests," said A&E Home Video VP of sales and marketing Kate Winn. "Because we have no inventory costs, it makes economic sense to make a much broader range of titles available than we could through a traditional manufacturing and warehousing approach.”

None of the deals with CustomFlix are exclusive or require a studio or supplier to only sell CustomFlix-made DVDs through Amazon.com.

Also on Monday, CustomFlix launched its Media Gateway service, which will digitize content and store those digital copies on CustomFlix Future-Proof Archive in the highest quality in which they were produced. Content providers can then choose whether to make those copies available on future formats such as one of the various high-def formats or potentially digital downloads. CustomFlix is not charging an upfront fee to digitize content for suppliers with more than 50 titles.

Media Gateway is being used by NBC, A&E and PBS in addition to other smaller suppliers. Greeley declined to comment on how the digital library could be used if Amazon wanted to offer a download service in the future.

CustomFlix has inked a deal with Mark Cuban’s HDNet to digitize its library and make its programs available through Amazon.com in whichever high-def format a customer chooses.

"Unfortunately, the disparate high-def formats will make establishing a single standard difficult and result in customer confusion,” Cuban said. “CustomFlix allows customers interested in high-def content to simply choose whatever format they want. DVD on Demand was an easy decision for HDNet, because discs are produced as customers order, so there won't be any wasted inventory, depending on which format becomes more popular for a specific title."

Greeley said that by offering DVDs in all high-def formats, smaller suppliers won’t have to commit to either format. “It provides maximum flexibility,” he said.