CBS and affiliates close to deal on digital downloads?
CBS and its affiliates still haven't reached an agreement for how to deal with a host of new-media issues — but they may be getting closer. CBS and its affiliates are meeting in Las Vegas, looking to hammer out a new digital agreement. The existing one gives stations a too-sizable 50 percent of current digital revenues. That surely isn't prudent enough from CBS' perspective–not when other similar stations deals, like that of Fox's, give stations anywhere from 12.5 percent to 25 percent.
What will make stations back down? Oh, just a little thing they really want: the NFL. Stations can give up their hefty stake in future digital profits, in return for modest financial contributions for the NFL — something that gives them hefty benefits in a big way right now.
Variety (subscription required) goes on to say:
"As for broadband, Fox and its [affiliates] recently worked out a template that allows the net to put a number of its shows on a broad range of digital platforms, from video-on-demand to MySpace to iTunes. NBC and its stations also recently formed the National Broadband Co., a joint venture designed to yield profits from video content generated by NBC Universal companies and NBC [affiliates].
"Those deals offer some idea of how CBS and its [affiliates] may begin to approach an agreement, though … every deal between affiliates and networks is different."
Posted by admin on June 1st, 2006 :: Filed under Business Trends,Internet TV
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