The weekly showcase game has been routinely shown on a one-hour delay but Demetriou said times had changed and Friday night games should be broadcast live.
"I'm on the record saying that live sport is what the world wants. I don't think you can get away from that," he said on Thursday.
"I don't think people want replays or delays. Everything in the world is instantaneous. You can get it online, you can get it on your phone, so hopefully Channel Seven will get into the 21st century."
The League's broadcasting rights deal ends after the 2011 season and negotiations on a new agreement have been on hold as the Federal Government conducts a review of the anti-siphoning legislation that prevents major sporting events being broadcast exclusively on pay television.
The free-to-air broadcasters have been lobbying against any relaxing of the current rules, while Foxtel has pushed for the right to bid for AFL games in its own right, instead of purchasing matches from the free-to-air rights holders.
Demetriou, who held discussions with government officials in Canberra on Wednesday, said he was pleased with the response from the Communications Minister, Senator Stephen Conroy.
He said the League had given assurances that it would continue to look after fans outside Victoria, particularly in the developing NSW and Queensland markets.
The government's recommendations arising from the anti-siphoning review are expected this week.
"We've been pretty consistent in our views that the AFL should be the only body that controls our schedule and our fixture. We've got the best interests at heart of our supporters," Demetriou said.
"We've assured the government that the Friday night game will be on free to air and it will be a game of very high quality and we've assured the government that we'll look after NSW, Queensland, South Australia and Western Australia with free to air coverage.
"We've given our commitments; our word is our word, our bond is our bond and we'll see how we go."
