Disney-ABC Television Group's EVP of Digital Media advises entertainment executives on how to embrace the emerging digital age as an essential opportunity, rather than a threat.

As executive vice president of digital media for the Disney-ABC Television Group, Albert Cheng is charged with general management and strategic oversight of digital media, as well as development of ancillary revenue streams for Disney-ABC Television Group's diverse portfolio of broadcast and cable networks, including ABC Entertainment, ABC News, ABC Daytime, ABC Family, Disney Channel and SOAPnet. To that end, he leads a newly formed digital media team that oversees product development, marketing and operations for the group's digital media content platforms, including video-on-demand, broadband, web-based and mobile platforms, as well as interactive television technologies.

Cheng and his digital media team also support franchise management through the development of related new products. Additionally, he will be responsible for creating new business ventures and partnerships in the digital media and online space, as well as providing additional negotiation planning and support for ABC broadcast affiliate relations in this emerging new area.

Editor's note: Cheng will be presented with "The 2006 Visionary Marketer" award at the upcoming Variety/iMedia Summit titled "Integrate '06 L.A.: Marketing to the New Entertainment Consumer" on April 13, 2006 at the Beverly Hills Hotel.

An explosion of new technology and a cultural transition towards interactivity are disrupting the era of traditional, mass-audience entertainment. Content, followed closely by advertising, is shifting to the internet, video games, cell phones and iPods. So how can entertainment executives embrace this new digital age as an opportunity rather than a threat?

I recently sat down with Albert Cheng, executive vice president of Digital Media at Disney-ABC Television Group to understand how he's responding to the changing media landscape.

Rebecca Weeks: You put two of ABC's biggest hits on iTunes. Do you have any plans to use the online distribution channel for brand new shows, or for shows that the network thinks should work but just haven't yet found their TV audience?

Cheng: In general, we are thinking about the internet as a distribution channel for content, new and old. The question always has to be asked first is, "How does this help serve the viewer better?" When we attract an audience to specific shows on our broadcast and cable networks, we are creating a community of fans who make appointment television a priority. Online distribution is a way to help viewers catch or sample a show they missed on the linear network, and in many instances, we can attract new viewers that had never thought of watching the show because it didn't fit into their schedule. Online delivery addresses consumers' needs to watch shows on their own terms, and in return, we believe it brings viewers back to the network in order to stay current with our watercooler programs.

Weeks: What do you see happening to the television industry in two years? Will we be able to view clips of all ABC shows online?

Cheng: By and large, people will still seek the comfort and entertainment experience around the television set. However, you will see more television content distributed through broadband and via portable media. Broadband and mobile media are a convenience and benefit, but not the primary driver of how most people want to watch their shows. It is our hope that we will see the television industry understand how to use emerging technology platforms to grow the overall business, as well as find alternative methods to market and nurture programs, and enhance and deepen relationships with viewers. Today, we can already view clips of all of our ABC shows online-- it is an effective promotional tool to get more people to watch a show they might be interested in. In the future, you may see online sites build even more effective tools to organize or serve up clips and therefore become an even more powerful show recommendation and promotion engine.

Weeks: Other than distributing content via iTunes, how are you leveraging the increasing adoption of mobile and on-the-go platforms?

Cheng: We are distributing a variety of content on cell phones with a number of wireless carriers. Cell phones are highly penetrated in the marketplace, and over time, video-enabled cell phones will grow to be a significant share of the market. This is a device that most of us carry around at all times and presents itself as an ideal platform on which to deliver video content to entertain and to promote. It is also highly interactive and specific to an individual. With this technology, we can blend content, interactivity and personalization to create a new advertising platform, as well as targeted content delivery.

Weeks: Where do you stand on the pay-per-program vs. advertising-supported content debate?

Cheng: We are open to all models. I also believe that there will be increasing market fragmentation in media consumption, and am therefore open to the possibility that no one single model may be adopted by the marketplace. We need to be open to a variety of different models in order to meet individual consumer's preferences. I predict there will be a limit on the share of the consumer's wallet that can be spent on pay-per-programs, thereby pushing them to choose their most favorite programs to purchase on that model. Given the increasing propensity in media consumption and because people may not be able to afford to purchase every show they want to view on demand, other shows could potentially be viewed online in an ad-supported environment.

Weeks: What types of interactive television programming are you developing? Who is the target?

Cheng: For us, interactive television is more about how we can add value to the advertiser. Rather than focus on interactive programming during a show, we are working with our advertising partners to figure out how can we make ads more compelling and relevant to viewers. From a consumer perspective, I want to watch my program and not have to figure out what button to push while I'm being entertained. It might work for reality shows, but maybe not for dramas or comedies. Interactivity during a show might be more appropriate for web-based delivery of programming because we are pre-conditioned to actively interact on that platform-- but with a "lean back" culture of the TV in the living room, it is tough to get your head around being an active participant. That said, if you gave me the option to find out more about a particular product that interests me during the commercial break, that is something I'm more inclined to do.

Weeks: How are you managing the decline of traditional distribution channels while also pursuing new ones? What advice do you have for entertainment marketers who face this same challenge?

Cheng: Today, we don't see a decline of traditional distribution channels. In fact, studies have shown that there is more TV viewing with all of the technological advancements of the past few years. We should be using all of the various content distribution platforms to help support our program franchises, developing them into cultural phenomena by leveraging the power of reach through a television network, the interactive medium of the internet to develop communities and the mobility of cell phones or portable devices to maintain a constant connection to our consumers. My advice to marketers is to understand what type of consumer uses the various technology platforms, devices and distribution services. Not all content will find success in digital media distribution. It really depends on the type of show, who watches it and how those viewers engage with the technology to get what they want, when they want it and where they want it.

Rebecca Weeks is content director of iMedia's Summits.