CBS Launches Online Programing

Chris Gaither and Meg James of the Los Angeles Times have taken note of the first move in what will most likely be a stampede of television networks moving content into cyberspace ...

"CBS has continued its aggressive push online by launching a broadband channel with its own slate of shows -- a move that leapfrogs it ahead of other broadcasters in the search for Internet audiences.

"Named Innertube, the Web site is the network's latest bid to goose Internet advertising revenue and attract younger viewers to its on-air programs.

"CBS executives said the site, at cbs.com/innertube, will also become a clearinghouse for free viewing of TV reruns, including current, classic and canceled shows -- once the network reaches an agreement with its affiliates over which shows they can use.

"'We want our content to be all the places our viewers are -- and they are certainly on the Internet,' said Nancy Tellem, president of the CBS Paramount Network Television Group.

"The unanswered question as big networks join upstarts in putting uncountable hours of video online: Who's going to watch all this stuff?

"'If you're a broadcast network, you're one of maybe 200 channels,' said Jupiter Research analyst Todd Chanko. 'On the Web you're one of an infinite number of choices.'

"CBS executives counter that they will promote the service on TV, and their free online broadcast of the NCAA basketball tournament in March showed they could attract big audiences online. Users of March Madness on Demand watched 19 million streams of live and archived games, and the online effort pulled in an additional $4 million in ad revenue.

"'They are throwing stuff against the wall to see what sticks,' said Stacey Lynn Koerner, a president at Interpublic Media. 'That's the beauty and the frustration of the times that we live in: It's not one-size-fits-all anymore.'

"CBS plans to roll out new broadband shows through the summer, including a dating show and entertainment magazine.

"Innertube will also include promotional material for TV shows, including features that currently appear on CBS.com. Those include a behind-the-scenes look at 'Survivor,' an online talk show about 'Big Brother' and recently, footage from rock band Pearl Jam's performance on 'Late Show with David Letterman.'

"The quickly changing landscape is causing pain for television station owners and Hollywood guilds, which are both trying to ensure they receive their fair share of the digital revenue.

"With the production costs for online shows much cheaper, CBS executives said they can target much narrower audiences than on broadcast television, where shows need millions of viewers to survive."