Disney-ABC Television Group and its affiliates today announced a deal that expands the network's ability to make content available on an on-demand basis through cable and satellite TV and makes affiliates partners in such offerings.

Under the agreement, affiliates will be able to sell ad time in the planned advertiser-supported VOD service, in which the fast-forward function is disabled so that users cannot skip the spots.

The new deal also lifts repurposing restrictions, allowing the network to distribute its programming at any time though the new VOD arrangement, as well as through electronic download services, including iTunes and Xbox, with which ABC has current distribution deals.

“We remain focused on our consumers and finding innovative ways to make our content more widely available to them, and we believe that this can be achieved by continuing to evolve the ways we work with our distribution and advertising partners,” said Anne Sweeney, co-chair, Disney Media Networks, and president, Disney-ABC Television Group, in a prepared statement.

“This new arrangement provides further proof of the dedication the network and our affiliates have to working together in unique and inventive ways to create new opportunities that build all of our businesses.”

Under the new agreement, ABC will provide network programs through a local advertising-supported video-on-demand service in both O&O and affiliate markets to cable, DBS, telco and land-line operators who agree to disable the “fast-forwarding” capability.

The number of commercials in the VOD episodes is still being determined, but will be less than the number featured during a live broadcast.

Each broadcast affiliate will have the opportunity to insert one local, 30-second spot within each half-hour of programming .

Ray Cole, chairman of the ABC affiliate board, said that he is recommending the new deal to all affiliates.

“We believe that it includes many important, affiliate-friendly features which provide an opportunity for local ABC stations to share in the economics of video-on-demand,” he said in a prepared statement.

“Importantly, it also serves as further affirmation of the constructive efforts of Anne Sweeney and her team to work with affiliates in a manner that strengthens and builds upon the traditional national network/local affiliate partnership.

Affiliates are committed to working with the network to create new, reciprocal business opportunities in both existing and new media.”

For the past several months, ABC and Cox Communications have been participating in a free VOD trial in Orange County, Calif., which involves disabling the fast-forward option for all offered ABC content.

Research by Knowledge Networks/Statistical Research in Cox's Orange County service area regarding this trial shows users of fast-forwarding disabled VOD overwhelmingly(93%) find the advertising acceptable in exchange for gaining free access to their favorite shows.

The research also shows that the addition of ABC series to their VOD offering has increased usage of the service.

“Cox customers in Orange County roared their approval of the free ad-supported ABC content made available in the My Primetime category of our On DEMAND service,” said Cox Communications President Pat Esser.

“We are very pleased to be a part of this innovative approach to enhancing consumer value while protecting stakeholder interests in the ad-supported TV model; we look forward to expanding My Primetime with ABC and other broadcast networks,” he said.