Cox Communications and ABC recently announced a trial of advanced video on demand, through which four of the network’s top primetime shows and select sports programs from ABC and ESPN will be available on Cox’s On DEMAND service. Starting this fall, “Desperate Housewives,” “Grey’s Anatomy,” “Lost” and “Ugly Betty” will be available to Cox’s On DEMAND customers in Orange County, Calif., the day after their broadcast premiers. The trial, and the fact that fast-forward capability will be disabled for these shows, has generated a lot of attention and questions. Here, Cox’s Senior VP of Programming Bob Wilson, responds to questions about the ABC venture and its implications.

1. Bob, what’s driving the VOD deal with ABC?

This is a step in the direction of taking VOD to the next level. It will put some of ABC’s most popular and valued shows, which are some of the highest rated in all of television, on Cox’s On DEMAND service the day after the programs first air. For Cox, it gives our customers enhanced access to free, over-the-air, premium broadcast content without either Cox or the customer paying incrementally more for it, and for ABC it will enhance the return on programming investment by providing extended program access in a way that protects and potentially enhances advertising value.

2. Why disable fast-forward capability?

Advertising revenue is the way broadcast programs are produced and paid for. So, as we take the On DEMAND service to the next level and provide customers access to premium content, it will be important to also protect the advertising revenue that pays for creation of that content. To be able to watch shows like “Desperate Housewives” and “Grey’s Anatomy” via VOD for an extended period of time after they premier, without paying extra, we think consumers will be willing to accept that they have to watch commercials, or at least not fast-forward through them. Part and parcel to this is that the content providers will receive good and timely viewership data that they can quickly share with advertisers to demonstrate how they’re getting their money’s worth. It’s important to note that the deal with ABC is a trial in one Cox market (Orange County) right now, with the ability to extend to other markets. It doesn’t apply to any of the other programs or movies on our On DEMAND service and has nothing to do with digital video recorders.

3. But will fast-forwarding through programs on DVRs eventually be prohibited?

Again, this trial with ABC applies only to premium VOD content and has absolutely nothing to do with DVRs. We have no plans at all to prohibit fast-forwarding of DVR-ed programs. We know that consumers have embraced DVRs and greatly value the control they provide, and this trial does not interfere with that technology, which consumers probably feel strongly is their domain. But there’s another big difference between DVRs and VOD. The operator controls VOD content, while the consumer controls DVR content. We have to be sensitive to consumers’ expectations on what they control, and hope they’re likewise sensitive to the content that we control, via VOD. We believe most consumers will understand the distinction and won’t have an issue with ad-supported On DEMAND programs, just as they’ve accepted advertising they can’t fast-forward through on programs viewed online. But, again, the bottom line is that this deal applies only to VOD and not to DVRs.

4. Will there be more advertising or less advertising on these On DEMAND programs?

Our trial will permit ABC to emulate the broadcast model they currently use in terms of national and local ad time. I think they will play a little with that model to see what’s most effective. I expect they will handle advertising in the VOD world similar to the way they place ads in online programs.

5. How’s that?

Programmers seem to have lightened the ad load a bit to make programs available online more palatable for the consumer. It’s a trade-off: a somewhat lighter ad load keeps the consumer engaged in the content, while programmers make a better connection with their viewers and get more immediate viewing data. As we look for additional ways to deliver value, variety and premium content to our cable viewers, via our powerful On DEMAND service, we think the online model—where fast forwarding of advertising is generally disabled—is a good starting point for what we’re trialing with ABC via VOD. We’ve also committed to trial with ABC the dynamic insertion of advertising into VOD content and targeting of ads to certain locations when those capabilities are operative – that’s when the fun with and the rewards of the VOD technology will really start!