A piece in Variety yesterday describing WBITD's aggressive new strategy to mine on-demand opportunities in cable, satellite and broadband underscores how technology is driving new distribution options and revenue opportunities, while at the same time posing new challenges to traditional business models.

 The article, entitled "WB Shows Go On-Demand" outlines how WBITD is launching "Warner TV" branded on-demand initiatives in Europe and Asia. That Warner will be offering its library of films and TV programs Warner entirely on-demand is a clear acknowledgement that consumer behavior has shifted beyond the "appointment viewing" paradigm of linear TV.

This shift, along with scarce channel capacity and resistant service providers, have all contributed to the fact that launching new cable networks here in the U.S has all but dried up. The recently unveiled Fox Business Channel is a huge exception; behind the scenes there are scores of people who aspired to launch their own cable networks who have now shifted their focus to on-demand, or increasingly to broadband.

Jeffrey Schlesinger, WBITD's president put his finger on why the on-demand and broadband models make so much sense, "The costs here are much lower than creating a linear channel. You don't have as much on-air promotion that you have to do. You don't have as much scheduling or advertising sales infrastructure. You don't have to worry about commercial insertion."

Building a new programming franchise today is more about nimbleness and experimentation than big structure and deliberative scheduling. WBITD seems to recognize this and also seems to be willing to test lots of different models depending on the opportunities and circumstances it encounters in each local market.

Of course the key balancing act for WBITD here is pursuing these new initiatives without disrupting existing revenue streams and relationships. That's the first thing I hear from all content providers who have a vested interest in existing models, but a hunger for new revenues. WBITD is sensitive to this: its plan is to offer library titles or a secondary window on current programming,

Add WBITD to your "watch list" of companies pioneering how distribution will work in the broadband era.

-Will Richmond