CBS Launches Innertube

By Anne Becker and Allison Romano
Broadcasting & Cable

5/4/2006 3:00:00 PM

http://www.broadcastingcable.com/article/CA6331568.html?display=Breaking+News


CBS Corporation has launched a free ad-supported broadband channel called 
Innertube. The channel, which debuted Thursday, will focus initially on 
original series for the Web and extra content for existing CBS-branded 
shows. Advertisers who have signed on to support innertube include Cadbury 
Schwepps, Pier 1 Imports and Verizon SuperPages.com.

For now, Innertube will not program full-length streaming videos of current 
CBS series, in part because the network needs to hammer out deals with 
affiliates to involve them, financially or otherwise, in the broadband 
venture. The site is slated to add full-length episodes in the future, as 
well as Webcasts from its library of programming.

"We are confident that, eventually, we will reach a mutually beneficial 
arrangement," Nancy Tellum, president of the CBS Paramount Network 
Television Entertainment Group, said Thursday on a conference call with 
reporters.

Involving affiliates will "increase promotional power," said Larry Kramer, 
president of CBS Digital Media. "They have shown a lot of interest in this 
and participating, and we are inclined to work with them."

Fox and its affiliates recently reached an agreement that gives stations a 
cut of revenue from new-media applications in exchange for allowing the 
network to repurpose its content. ABC, however, has yet to cut its 
affiliates in on any revenue from streaming its shows online or selling 
episodes on iTunes.

CBS is launching innertube as the broadcast networks prepare their upfront 
presentations to advertisers, which will take place the week of May 15. At 
a time when advertisers are demanding that TV networks prove they can 
engage viewers on multiple touch points beyond just the television screen, 
all of the broadcast networks are expected to focus their upfront pitches 
heavily on their digital products, like broadband web sites and mobile 
channels.

On Monday Disney-ABC launched a two-month test site of free ad-supported 
streaming episodes of four of its current series. Cable networks, which 
have been making their upfront presentations over the past couple of 
months, have largely weighted their own pitches on new digital products.

Innertube will at first stream three shows each day, with one new program 
posted every week day. Series slated to debut this month include Greek to 
Chic, a reality show on makeovers at college; Animate This!, an animated 
narration of events from celebrities' lives; and BBQ Bill, a scripted 
sketch comedy. The site will also re-stream a Pearl Jam performance, which 
is scheduled to take place on the Late Show with David Letterman tonight 
and be subsequently webcast on the network's web site CBS.com. While 
innertube will program Beyond Survivor, a behind-the-scenes look at the 
network's reality show,  CBS.com will continue to debut new episodes of the 
existing online talk show Survivor Live.

Programs to be added this summer will draw content from various assets 
owned by CBS Corp. Showtime Shorts, for example, will feature independent 
short films from the company's pay cable network Showtime. The Best of 
House Calls will offer highlights from previous episodes of the CBS.com 
talk show about Big Brother. Original shows slated for this summer include 
Hook Me Up, an online dating series, and Inturn, a reality search for a 
castmember for CBS's daytime soap opera As the World Turns.

CBS has previously offered its content through a pay-to-play model on 
Google Video and iTunes. In March, it offered free, ad-supported streaming 
of the NCAA men's basketball tournament, earning a reported $4 million in 
ad revenues.

Innertube will be restricted solely to CBS Corp.'s entertainment 
programming. News and sports programming will be siphoned off onto existing 
Web sites CBSnews.com and CBSSportsLine.com.

"This is truly an entertainment medium," said Kramer. "This is our 
entertainment play on the web."

CBS is aiming its original Web content, like Greek to Chic,at young 
viewers, who are familiar with video online but not necessarily viewers of 
the CBS broadcast network. It will also program Love Monkey and other 
series that were cancelled midseason on CBS, as well as earlier library 
programming such as I Love Lucy. Other possible content includes pilots 
that never made it to air on CBS.

"We're always looking for opportunities to find new distribution channels 
and new revenue streams from our content as well as additional 
opportunities to engage with our shows," said Tellem. "We want our content 
to be in all of the places the viewer is and they are certainly on the 
Internet."

CBS will sell advertising on innertube during the upfront, both to 
advertisers interested only in online buys, as well as to those who want to 
buy on both network shows, like Survivor, and their extensions on innertube.

Some of the current advertising deals were structured as product 
integrations. Restaurant chain Chili's is featured in the storyline of 
episodes of Greek to Chic, for example.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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