A confidential report prepared by BIA Advisory Services for the CBS, NBC, Fox and ABC affiliate groups suggests that affiliates work with cable and satellite TV operators and programmers in developing new businesses and sources of revenue. In an economic spin on "the enemy of my enemy is my friend" axiom, the report cites the common threat of the Internet and characterizes cable, telephone and satellite as broadcasters' natural allies, not enemies. Through revenue-sharing arrangements with cable and satellite providers, the report says, the affiliates and the broadcast networks could offer "non-linear interactive streams" — that is, video-on-demand programs — with targeted "on-the-fly" advertising and promos. And, in exchange for local ad inventory, affiliates could supply local programming and other local services for cable networks, including promotion, ad sales, ad trafficking and spot production, the report says. Enhanced by local programming and promotion, the cable ad inventory would be more valuable than it is now.
