CBS locals make video deal with Yahoo
Steve Safran October 16th, 2006
The 16 CBS O&Os have made a deal to syndicate 10 to 20 local news clips to Yahoo on a daily basis. The clips will appear on the Yahoo News local pages in each of the 16 markets, and CBS and Yahoo will share the associated ad revenue. This is the first deal of its kind between the locals and a national portal, and Yahoo is still talking with potential video partners in other markets. The overhaul of the CBS O/O sites - lauded here at LR - has quadrupled overall video views to an estimated 50 million this year. But consultant Terry Heaton sounds a cautionary note. “This deal exposes these 16 markets to further encroachment by Yahoo (or any of the other portals) as THE local go-to media entity for those markets,” he writes. “I don’t see this as anything other than a short-term win and a long-term loss.” More details of the deal in the press release…
PRESS RELEASE — CBS Television Stations, a division of CBS Corporation (NYSE:CBS) (NYSE:CBS.A), and Yahoo! Inc. (Nasdaq:YHOO) today announced an exclusive video syndication agreement in which local news video from 16 of CBS’s owned stations will be made available on Yahoo! to the Internet’s largest news audience. The relationship, which begins tomorrow, marks the first video agreement between a network-owned television station group and an Internet news provider. CBS and Yahoo will share revenue from advertising sold adjacent to CBS Stations’ content on the site.
“Local news has become one of the most important pieces of a user’s online news experience, and this agreement brings some of the best local TV journalism to the millions of Yahoo! News users,” said Scott Moore, head of news and information, Yahoo! Media Group. “One of our key priorities is to offer our users relevant and high-quality local news in each market, and with CBS we’ve found a partner that deeply understands the issues most important to the communities they cover.”
Yahoo! News users will have access to 10 to 20 local news video stories per day, from each of the 16 markets. The video includes breaking news stories, as well as other locally-focused features and reports.
“This is the first of its kind for a local TV station group — our local TV station video will now be available to millions of Yahoo! News’ users everyday, providing them with our CBS Station’s extraordinary local news coverage from every one of our markets,” said Jonathan Leess, President, CBS Television Stations Digital Media Group. “Finding new platforms to distribute and monetize our industry-leading content has always been a core strategic initiative of our company, and this deal accomplishes both.”
Yahoo! will highlight the local video to users who select a city or zip code within a CBS owned station market. The video will be station-branded and can be found on the Yahoo! homepage (http://yahoo.com) and throughout Yahoo! News. On Yahoo!’s local news pages, video will also include links to the station’s website where users can view additional local video and stories.
Yahoo! News has exclusivity among major news website aggregators to the CBS Television Stations video content, and CBS will be the exclusive provider of local news video from their markets to Yahoo! News. The agreement covers 16 of CBS’s owned stations that are part of the CBS Television Network and have local news operations, including:
New York (WCBS)
Los Angeles (KCBS)
Chicago (WBBM)
Philadelphia (KYW)
San Francisco (KPIX)
Boston (WBZ)
Baltimore (WJZ)
Salt Lake City (KUTV)
Dallas (KTVT)
Minneapolis (WCCO)
Miami (WFOR)
Denver (KCNC)
Sacramento (KOVR)
Pittsburgh (KDKA)
Austin (KEYE)
Green Bay (WFRV)
54 Comments Add your own
1. thedetroitchannel | October 16th, 2006 at 9:05 am
i agree with terry. it was the first thing that i thought when i read your entry early this morning; was cbs just ceding the local online market to a monolith? or did they simply choose yahoo as the lesser of evils instead of google?
THE local go-to media entity…yeah!
2. Rocker | October 16th, 2006 at 10:34 am
It took Yahoo a long time to get someone to go for this deal. And for good reason, IMHO. No coincidence that the same company that has ceded it’s local weather franchise to the Weather Channel in NY is the one that finally went for it.
3. RobDET | October 16th, 2006 at 12:48 pm
Ditto to the above posts. If CBS were able to generate the traffic and revenue on their own they wouldn’t be going for this deal. Other nets have passed on this deal.
4. thedetroitchannel | October 16th, 2006 at 1:39 pm
ever watch dominos fall?
it only takes one to topple the entire stack, right?
5. RobDET | October 16th, 2006 at 3:12 pm
Once you give up control of your content you never get it back. Not sure how putting your content on another site (CBS on Yahoo) helps you build your own brand and expand your own offerings.
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