Web Firms to Distribute CBS Shows on Internet

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By Andy Fixmer and Leon Lazaroff
Bloomberg News
Friday, April 13, 2007

CBS agreed with AOL, Microsoft's MSN and eight other companies yesterday to have its programs distributed on the Internet, as part of a broader plan to attract more advertising.

The New York television and radio network said in a statement that the companies will share ad revenue. CBS will offer a rotating lineup of previously aired shows, including "CSI," "Survivor," sports and the "CBS Evening News With Katie Couric."

CBS is chasing viewers and advertisers who have defected from network television. Broadcasters, including CBS, will meet with advertisers next month to negotiate pricing for the TV season that starts in September. Having a network of online outlets for its shows may help generate more sales than its existing sites such as CBS.com, Google's YouTube and other video sites.

"This will certainly be a weapon to the extent that it has generated interest from advertisers," CBS Interactive President Quincy Smith said in a telephone interview. "Advertisers have started to ask for mass."

The shows will be available in the United States, and some clips and full-length sports programming will be available worldwide, CBS said.

Brightcove, Joost, CNet Networks, Comcast, Bebo, Netvibes and Veoh also signed agreements with CBS.

The network is also talking about distributing content with NBC Universal and News Corp., which plan to start a Web site with their shows to challenge YouTube.

CBS created the CBS Interactive Audience Network with the sites and will begin selling ads for the shows in the next few weeks. Advertisers will be able to buy ads for the shows either individually or across all the sites, CBS said.

"It gives them the ability to control the advertising," said Allen Weiner, an analyst at Gartner, a market research firm.



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