The threat of internet TV downloads is met head on by Disney the owner of ABC network and Pixar. ABC will be offering their prime-time TV shows like Lost and Desparate Housewives for download via their MyABC portal at http://abc.com launching in May.

The Wall Street Journal has the story on the front page today.

DISNEY PLANS to make much of its most popular programming on ABC and other channels available free anytime on the Web. The move could speed changes in TV viewing and help revive the ad business.

The big news s they’re allowing these downloads for free. They will contain advertising and the ability to fast forward and rewind. The shows are already available for video iPod via iTunes, but ABC understands advertising business models, so they’re playing with their advertising to make an event of the launch. Should be interesting.

Great move, they’ve siezed the day and decided to grab the market before someone else eats their lunch.

It looks like Steve Jobs may be teaching them to unclench their grip.