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. 

CBS Corporation (NYSE:CBS) is launching a new service called CBS HD Gallery on CBS.com.  Intel Corporation (NASDAQ:INTC) is the exclusive launch partner of the CBS HD Gallery.  The CBS HD Gallery will include full episodes of CSI, Survivor, How I Met Your Mother, The Amazing Race, Big Brother, and The Big Bang Theory.

“The HD Gallery represents another milestone for experiencing CBS programs online,” stated Anthony Soohoo, SVP and GM of CBS Interactive.  “We’re focused on providing the highest quality audio and video that technology allows, and we’re working with leaders across the industry, and clients like Intel, to make that objective a reality.” 

Through the deal, Intel has solid advertisement placement around the video gallery.  Check out the below screen shot:

“Everyone knows that the world of entertainment is quickly shifting to digital video, from the creation of original Webisodes and home videos, to streaming TV shows online and an increasing amount of high-definition programming,” stated Heather Dixon of consumer marketing at Intel. “We’re loading Intel-based laptops and PCs with a variety of HD and video technologies and blazing fast processors so consumers can enjoy a stunning online experience from innovative sites like CBS HD, on the go or in the home. In fact, the timing of the CBS HD player couldn’t be more perfectly aligned with our own introduction of Intel Centrino 2 mobile technology for notebook PCs that offers native HD support and the battery life to enjoy several CBS online shows with one charge.”

The financial details of the partnership is undisclosed.  While CBS.com has made their own platform for distributing video content, NBC and FOX is using Hulu.

 
CBS Corporation (NYSE:CBS) is partnering with dog social network, Dogster.com to push their upcoming show, Greatest American Dog.  The media company is premiering the new show on Thursday July 10th.  The Greatest American Dog will also be promoted at hot dog stands in New York, video displays in supermarkets, cable advertising, and dog walking teams in New York.

CBS placed ads on Dogster.com that states “you’re going to sit, roll over, and beg for more in the search to find the greatest American dog.”  Dogster is also hosting teaser trailers of the show and has created profiles for the contestants of the show.  The show will be promoted in Dogster’s Dog Blog and newsletter. 

“The in-store component of the GREATEST AMERICAN DOG campaign makes use of motion sensors and video screens in the pet food aisle of selected grocery stores in New York and Los Angeles,” stated CBS Corporation Communications.  “Shoppers who come within a few feet of the sensor hear a bark, and are invited to press a button that initiates a thirty-second video clip.”

The Greatest American Dog will be hosted by Jarod Miller and the show will have 12 contestants.  The winning contestant will get about $250,000 in cash.

Related Links:
CBS
Dogster.com

 
Yahoo! Inc. (NASDAQ:YHOO) and CBS Corporation (NYSE:CBS) announced today that CBS’ Audience Network will now be powered by Yahoo! TV.  Yahoo! TV will have access to CBS’ online catalog of TV shows and other entertainment.

NBC and FOX have similar deals in place with Yahoo! TV.

“This announcement underscores the value of CBS’s open, non-exclusive, multi-partnership strategy for distributing our content online,” stated Anthony Soohoo, SVP and GM of Entertainment at CBS Interactive. “We are delighted to add Yahoo! to the Audience Network, not only because of their reach, but also because they offer a great user experience for CBS content. This is a win-win in that it bolsters the distribution of CBS content while giving Yahoo! users access to programming that has proven to be among the most popular professional content online.”

Other CBS Audience Network partners include Joost, MSN, AOL, YouTUbe, TV.com, Veoh, Comcast, Bebo, Blinkx, Brightcove, Joost, MeeVee, Metacafe, Netvibes, Revver, TVGuide, and Sling Media.

“As the #1 online TV site, Yahoo! TV is committed to offering our users the most comprehensive television experience on the Internet,” stated Karin Gilford, VP of Entertainment and Lifestyles at Yahoo!. “The partnership with CBS significantly expands our video offerings and provides our users with a consistent and best-in-class viewing experience. It’s all part of our strategy to become the starting point for the most consumers on the Web.”

Yahoo! TV will host and stream CBS content for free with ads built in.  Yahoo! TV is available at: http://primetime.tv.yahoo.com/.

Information Source:
[1] Press Release sent by CBS to Pulse 2.0

As the first premium content network to take an open approach to syndication, we are committed to providing our users with the best online viewing experience possible,” stated Anthony Soohoo, SVP and GM of Entertainment at CBS Interactive. “Our new video player platform takes advantage of the new social medium online by combining the most advanced video technology with our expertise in premium content programming to deliver new ways to discover and enjoy entertainment online.”

CBS Corporation (NYSE:CBS) officially announced yesterday that they are launching a new video player in HD-quality to enhance the user experience on their website.  The video player will be launching over the next few months.  The video will be able to go full-screen and users can embed the videos in their MySpace, Facebook, blogs, or other websites.

Users will also be able to watch CBS premium content in H.264 standard which is the same standard as Blue-Ray and HD-DVD.

The HD Video Player was developed by the CBS Labs division (http://labs.cbs.com).  CBS Labs also has a Social Viewing Room where users can chat about the same videos that they are watching. This makes CBS programming more interactive.

Another feature of CBS Labs is Build.last.fm.  CBS acquired Last.fm for $280 million in May 2007.  Last.fm is also being used to power CBS Radio.  CBS Interactive oversees Interactive properties: CBS.com, CBSSports.com, CBSNews.com, CBS Mobile, CBS EyeLab, Last.fm, Wallstrip, and MobLogic.tv.

Information Source:
[1] Press Release sent to P2 by CBS Corp. Communications.

“There are very few opportunities to acquire a profitable, growing, well-managed Internet company like CNET Networks,” stated CBS CEO, Leslie Moonves. “CBS stands for premium content and unparalleled reach, and CNET Networks will add a tremendous platform to extend our complementary entertainment, news, sports, music and information content to a whole new global audience. Together, CBS and CNET Networks will have significant additional exposure to the fastest- growing advertising sector and can accelerate our growth through a number of new content, promotion and advertising initiatives. We could not be more pleased with the prospect of adding CNET Networks and its tremendous team of people to the CBS family. I look forward to working with Quincy Smith, Neil Ashe and the considerable combined talent at both companies, as we build upon our success.”

CBS Corporation (NYSE:CBS) announced today that they have entered an agreement to acquired CNET Networks, Inc. (NASDAQ:CNET).  Leslie Moonves, President and CEO of CBS made the announcement.  CBS will pay $11.50 per share in cash for all issued and outstanding shares.  This amount represents $1.8 billion.  CBS has now become one of the top 10 most popular Internet companies.  CBS and CNET combined receives 54 million unique visitors per month and has 200 million users.

In 2007, CNET made $406 million in revenues through its various Internet properties.  CNET owns News.com, ZDNet, CNet.com, GameSpot.com, MP3.com, UrbanBaby, TV.com, TechRepublic, MySimon, BNET, Search.com, and CHOW.  The content on these sites will be integrated into CBS’ Internet properties: CBS.com, CBS Radio, Wallstrip, last.fm, MaxPreps.com, CBSCollegeSports.com, CBSSports.com, MobLogic, and CBS’ TV stations.

“The core businesses of CNET Networks and CBS Interactive represent near perfect category symmetry in premium online content,” said Quincy Smith, President, CBS Interactive. “Together we will have a terrific opportunity to not only grow our established businesses, but to build new attractive verticals of content as well. This is the beginning of an era for both CBS and CNET Networks; plus, it’s going to be great to work with Neil and his team, many of whom I have known for many years.”

This acquisition also ends CNET’s fight with Jana Partners, a hedge fund that wanted more control over the board.  CNET recently signed a joint advertisement partnership with Yahoo!  Yesterday, I also wrote about how CBS agreed to a partnership with the producers of KateModern and LonelyGirl15.  CBS is making very strategic Internet moves.  These are some solid partnerships and acquisitions.

Information Sources:
[1] News.com: CBS to buy CNET Networks by Margaret Kane
[2] CBS Corporation Press Release: CBS Corporation To Acquire CNET Networks, Inc.
[3] paidContent: BREAKING: CBS Acquiring CNET For $1.8 Billion; 44.6 Percent Premium by Joseph Weisenthal

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

“The content and distribution power between these brands is incredible, and we’re tapping into that strength to greatly expand our digital footprints while significantly improving the user experience on all our platforms.”
-CEO of Last.fm, Felix Miller

CBS Interactive has found a use for the music social network they acquired last year, Last.fm. CBS Radio will be levaraging Last.fm to distribute CBS Radio. Some of the stations that Last.fm will be streaming includes WCBS (New York), KROG (L.A.), WXRT (Chicago). Using the CBS Radio player, visitors will be able to listen to full songs on Last.fm. CBS acquired Last.fm for $280 million in May 2007.

CBS Radio has over 140 radio station. Last.fm CEO, Felix Miller claimed this initiative is “the first of what we hope to be many collaborations (with) CBS Radio.”

CBS Radio also recently took advantage of AOL and XM’s contract expiration. CBS Radio will be rolled into AIM and other AOL properties around May 2008. CBS Radio will be brokering the advertising and splitting the revenue with AOL.

Information Source:
[1] Digital Media Wire: CBS Radio to Stream Station Feeds to U.S. Last.fm Users by Mark Hefflinger
[2] Center Networks: Last.fm Gets CBS Radio Stations by Allen Stern

“Competition in the marketplace generally protects consumers and I have no reason to believe that this won’t happen here,” stated Justice Department Antitrust Chief, Thomas Barnett.

Sirius Satellite Radio Inc. (NASDAQ:SIRI) has received the approval it needs to purchase XM Satellite Radio (Public, NASDAQ:XMSR) for $4.59 billion. The Justice Department has given both companies antitrust clearance on the basis that consumers have choices. This includes audio on mobile phones and other personal digital music players. There is still one hurdle left: the FCC. Both companies have to get approval from the Federal Communications Commission.

CEO of Mel Karmazin made a promise to the government that if both companies were to combine, they would give consumers options such making certain channels available “a la carte.” And consumers would be able to block adult content and receive refunds for channels that they don’t want. This promise made by Karmazin may influence the FCC decision.

Sirius and XM Satellite radio charge roughly $13 per month to subscribe to their services. If both companies merge, the monthly price for their services is undisclosed.

Earlier this month, AOL made it clear that XM will not be power AIM Radio or Winamp starting on May 1st. This partnership break is related to AOL’s shift in advertising effort. AOL Radio will now be powered by CBS. CBS Radio will be taking over the advertising sales for AOL and will be splitting revenues.

Going forward, I think AOL Radio is going to suck. I was just comparing XM Radio’s channel listings with CBS Radio. XM stations are unique and have more interesting options compared to CBS. AOL wasn’t making much money from the XM Satellite Radio deal so it may have made sense for them to switch. I have a feeling that I may not be the only one that is going to stop listening to AOL Radio though.

Information Sources:
[1] Engadget: XM / Sirius merger approved! by Nilay Patel
[2] Washington Post: AOL, CBS Team Up For Radio, Advertising by Cecilia Kang