The Cable News Network and Internet Broadcasting have an alliance that will provide CNN.com a way to provide a larger amount of local news.Â This would give CNN a chance to snag more local advertisements.Â Internet Broadcasting is based in Minneapolis, MN and will now be partially owned by CNN.
This CNN-Internet Broadcasting deal is bad news for newspaper websites such as Detroit Free Press’ Freep.com and The Chicago Tribune’s local news section.Â
“CNN’s global reporting attracts millions of online consumers to CNN.com for domestic and international news every day,” stated Jim Walton, President of CNN. “Partnering with Internet Broadcasting adds another dimension – enhanced coverage of local news and events – and brings CNN reporting to significantly more people online.”
Over the course of the summer, CNN.com will also be unveiling a new web site design that emphasizes free archive video content.Â CNN will shift its focus to an advertising-model over its current subscription-based model.Â The amount of dollars that are being spent on the acquisition of Internet advertising companies emphasize the need for news companies to adapt to advertising-centric models.
The largest acquisition this year for an Internet advertising company was made by Microsoft, who acquired aQuantive for $6 billion.Â Google acquired DoubleClick for $3.1 billion.Â What we may see is a race to see who can outbid advertising deals for companies looking for advertising sources such as CNN.com.