Seeking Alpha

J.P. Hannan

About this author:

Variety is reporting that in a first of its kind:

Fox (NYSE: NWS) will stream the premiere of "Fringe" and season opener of "Terminator: The Sarah Connor Chronicles" online at the same time as they bow on TV.  But there's a catch: Only computer users on college campuses will be able to log in to watch the simul-stream.  Move helps Fox expose the trend-setting college audience -- who are more likely to have computers than TVs in their dorm rooms -- to the shows.

Expanding that direct relationship with the viewer is exactly what digital media is all about, and another warning shot to broadcasters and other media outlets who do not control their own content that their business model is antiquated. 

While this is a limited rollout from Fox, as its general modus operandi would indicate, it is probably just the starting point for the company.  Ultimately, with viewers able to see these network television shows over the web as they premiere, U.S. television broadcasters' highly touted leverage with cable systems will lessen and they will not be able to extract further growth in retransmission fees from these operators, capping or reducing terrestrial television's main growth engine right now.

Disclosure: None