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August 16, 2006

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Andrew

The local affiliate issue is precisely the reason why all networks aren't doing this. CBS just negotiated with their member stations to share ad revenue for their online initiative, per today's WSJ:


"CBS signed a new contract with its local stations last spring that loosens restrictions on what CBS can do with programming and gives stations an unspecified piece of new media deals. Earlier this week, CBS said it will start streaming episodes of certain prime-time shows, free of charge, on its Innertube Web portal the morning after they air. CBS says ad inventory on Innertube for the streaming launch next month sold out within a day to big-name companies, including Target and General Motors."

Given the advertiser interest, I can see other networks quickly convincing their affiliates to get on the bandwagon, particularly for new shows that could use the extra exposure that the Internet provides.

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