Netflix, Inc. (NASDAQ:NFLX) has made a deal with CBS Corporation (NYSE:CBS) and The Walt Disney Company (NYSE:DIS).  The agreement is that Netflix members will be able to watch shows appearing on Disney and CBS the day after they air on TV.  This means if you are a fan of How I Met Your Mother or Hannah Montana and you have access to a Netflix account, you are in luck.  Even though many of the shows already appear on sites like Hulu and CBS.com itself, many of the shows on that site arrive days after the show originally airs. 

The effort by Netflix to make these deals indicates the pressure that the DVD market is in when competing directly against downloads.  Amazon.com recently created a new video site.  The sales of movies on iTunes is increasing at a rapid pace.  And Hulu and Joost are rapidly adding free video content. 

Those paying for monthly subscriptions on Netflix at $8.99 can already play select TV shows and movies at no additional charge.  This move alone was made in order to compete with Blockbuster’s DVD mail order in-store return strength.  Netflix hosts about 12,000 videos to watch online.  “With deals like CBS and Disney, we’re giving subscribers additional reasons to try it,” stated Ted Sarandos, chief content office of Netflix. 

Web videos are becoming extremely influential and is changing the lives of those who benefit from instant traction.  And major media corporations want in.

CBS Corporation (NYSE:CBS) was impressed by the success of video viral hits LonelyGirl15 and KateModern. This made CBS decide to put together a production deal Greg Goodfried and Miles Beckett, producers of both web series shows.  Greg and Miles started a production company called EQAL which raised $5 million in Series A last month from Spark Capital, Marc Andreessen, Ron Conway, Georgies Harik, and Conrad Riggs.  

CBS will even get “first-look” rights for projects created by EQAL.  CBS acquired Wallstrip, a comedy finance news program last year and now that team runs the in-house web production studio.

EQAL is profitable because of web video sponsorship.  The movie Jumper sponsored some of the shows produced by EQAL.  Neutrogena was able to plug in one of the shows by having a scientist employee make a cameo.  

Information Source:
[1] Silicon Alley Insider: CBS Inks ‘First Look’ Deal With Lonelygirl Dudes by Michael Learmonth