CBS is launching a licensing and merchandising unit called CBS Consumer Products and another unit, CBS Home Entertainment, to handle its DVD business.

The new units will try to generate new revenue for CBS beyond advertising on its broadcast network, a business that is challenged by ad-skipping technology and new video alternatives, including digital video on the Internet.

The Consumer Products business will be headed by executive VP and general manager Elizabeth Kalodner, who joined the company from Sesame Workshop, where she was executive VP and general manager.

She will be responsible for CBS’s licensing and merchandising business, and will look for ways to develop new revenue streams from CBS’s programming libraries and current shows. The unit will be part of the CBS Entertainment division, reporting to Nancy Tellem, president of the CBS Paramount Network Television Entertainment Group.

“With this move we’ve created a consumer products operation that is singularly focused and more closely aligned with the programming to better identify and create new business opportunities for our content assets,” Ms. Tellem said in a statement released Tuesday.

Ken Ross has been named executive VP and general manager of CBS Home Entertainment. He has been with CBS for 15 years, managing licensing, merchandising and home video activities.

CBS Home Entertainment plans to increase the number of DVD releases by 20 percent in 2007. The unit will be part of CBS Television Distribution, reporting to Bob Madden, president and chief operating officer.

“DVD sales for television series continue to grow, and a dedicated unit in this area puts us in a better position to exploit more of the vast programming assets in this company, to focus on worldwide distribution opportunities and to grow our revenue even further,” Mr.Madden said.

(Editor: Liff)