CBS Corporation announced today a new wide-ranging agreement with the CBS Affiliate Board to expand CBS’ network-affiliate partnership into the digital marketplace. The deal addresses affiliates’ continued participation in CBS All Access as well as additional opportunities to participate in over-the-top platforms, including Hulu, Google’s YouTube TV and future new entrants, with additional revenue possibilities for all.
With this new collaborative agreement, affiliated stations are joining with CBS to distribute premium content to new “skinny bundles” reaching viewers coast-to-coast across multiple platforms and screens anytime and anywhere. Specific terms of the agreement were not disclosed.
“Expanding distribution on these new platforms together with our affiliates has been a part of CBS’ long-term digital strategy, and I am very proud we have reached this agreement with our affiliate board,” said Ray Hopkins, President, Television Networks Distribution, CBS Corporation. “No broadcaster has made preserving the network-affiliate model a core tenet of their strategy like CBS. We look forward to continuing to work in partnership with our affiliates, and as these new forms of distribution continue to grow, including CBS All Access, so will our revenue together.”
“We are pleased we have reached this agreement in partnership with CBS,” said Chris Cornelius, Chairman of the CBS Affiliates Board. “Access to these new and emerging digital distribution platforms gives all CBS affiliates the opportunity to provide viewers with more accessibility to their favorite local programs as well as must-see, hit CBS programming such as the NFL, ‘The Big Bang Theory,’ ‘NCIS,’ ’60 Minutes’ and so much more.”
CBS All Access is the only direct-to-consumer product of its kind, and CBS is the only network to offer its affiliate partners a revenue-generating opportunity to reach viewers in their markets with local and national content, at home or on the go through its own streaming service. Viewers in 90% of the country can receive their local CBS affiliate through CBS All Access, and that number is expected to grow under the new pact.
In addition to CBS All Access, this new deal establishes a framework for distribution of local signals on Google’s YouTube TV, Hulu’s new television streaming service, and future new entrant over-the-top platforms, as well as the opportunity for additional revenue from these new services while reaching digitally engaged viewers with premium local and national content. CBS was the first broadcast network to partner with its affiliates on a new over-the-top platform with Sony Vue in 2015, and local signals are now available in 100 markets.
— press release from CBS Corp., May 9, 2017