The CBS Television Network and the board of the organization that represents its local station affiliates, the CBS Television Network Affiliates Association, say that they have negotiated the material terms of a multi-year agreement which will allow both parties to benefit from opportunities in new media (and which thus will presumably allay any fears CBS affiliates have of being "disintermediated" by the network). The deal, which has still to be approved by the affiliates, also extends the parties' cost-sharing partnership for NFL coverage by three years.
According to the parties, the agreement will give CBS increased flexibility to make programs available on the Internet, cable VOD and other emerging platforms. At the same time, CBS affiliates will have the ability to promote these digital offerings on the air and will receive a share of the proceeds they generate. The deal covers both VOD and subscription VOD offerings. In addition, the affiliates will receive an undisclosed "bounty" for traffic their promotional efforts deliver to CBS.com and CBS's other Internet properties that results in viewing of advertising-supported content. "This new agreement is a significant evolution in the network-affiliate partnership," Doreen Wade, chair of the CBS Television Network Affiliates Association, said in a prepared statement. "In a rapidly changing multiplatform, multimedia universe, CBS and its affiliates must develop new business models and methods that best position us to maximize revenue and branding opportunities. This agreement moves us in the right direction, recognizing the unique programming and promotional value that both parties bring to network broadcasting. We appreciate that the input of the Affiliates Association drawing on the expertise of executives from stations and group owners from around the country was an important part of the process that helped the Board negotiate the terms of a new agreement that we believe the remaining affiliates will approve."
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