Yahoo!, Disney discuss connected TV widget content

Disney will likely bring some broadcast content to the Yahoo! Connected TV software, which is built into a range of TV sets as a widget platform. The move will mark Yahoo!’s first big foray into the Internet television world—until now, the widgets haven’t had much of a video component to them.

The Yahoo!/Disney collaboration was first revealed ealier this week and now The Wall Street Journal cites people familiar with the matter in reporting that Disney is considering widgets for the ESPN, ABC and Disney Channel networks, which would deliver streamed, on-demand content. However, the final decision has not yet come down as to what extend that on-demand video should be a part of the widget. Media companies are naturally concerned about cannibalizing revenue from traditional pay-TV operator offerings.

For the House of Mouse, Yahoo! is working on a range of "innovative applications, with video-on-demand being one aspect of that," said Ron Jacoby, chief architect of Yahoo Connected TV. "We're working with our network partners on a business model that works for networks and advertisers, not a model that deteriorates existing revenue streams," he said. "We think that's a big differentiator."

To that end, ESPN’s widget might meld replays with stats, while the ABC and Disney versions would offer trailers and clips from shows—no decision yet on full-length episodes, but it’s more likely the widgets would act as teasers to longer content that would be available through other broadcast means.

Yahoo! claims to be embedded in 6 million sets in 135 countries, which will climb to 8 million by March. The move places it in the same terrtory as Apple TV and GoogleTV, which aim to meld broadcast and Web or OTT video content. It's a tough market thanks to the power and uneasiness of the pay-TV operators.