Thursday, June 29, 2006

CBS, Affils Strike Digital Deal

Source: Broadcasting and Cable CBS and its affiliates have agreed on the framework for a new revenue-sharing agreement that clears the way for the network to distribute its content on digital platforms and deals affiliates in on potential profit.

The pact, announced Thursday, gives CBS more flexibility to funnel shows to the Internet, video-on-demand (VOD) and other emerging platforms. In return, stations will receive a cut of proceeds, including incentives for driving traffic to CBS' Website and other network platforms where they sample ad-supported CBS fare.

Also as part of the deal, CBS stations will continue to chip into the network's NFL deal for the next three years. Several station groups, including LIN Television, Gannett and Meredith Broadcasting, have already approved the terms, and now the full affiliate body must also give their approval.

CBS and its affiliates have been working on the agreement for months. As the broadcast networks have rushed to put their content on the Internet, iTunes and VOD, affiliates have balked that they play a key role in making shows popular and should be included in profits. MORE


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