CBS (CBS) has cut a series of deals to put its TV shows on Time Warner (TWX) AOL, Microsoft (MSFT) MSN, and Yahoo! (YHOO). The programming will also go on new peer-to-peer video distribution platform Joost.
The CBS initiative comes on the heels of a video distribution pact put together by News Corp (NWS) and GE’s (GE) NBC Universal. This would also put programming on the large web portals and make money based on sharing advertising revenue. The venture is meant to compete with Google‘s (GOOG) YouTube operation.
Oddly enough, MGM also announced that it will put 500 movies onto the iTunes download service. iTunes already has content from Disney (DIS). But, Time Warner, Sony (SNE) Pictures, and NBC Universal have not agreed to join the service.
The problem with all of these deals is that the video content, which was recently only available on TV, DVD, and in theaters, is now going to be available on consumer handheld devices, cell phones, and PCs.
The amount of time that people are willing to watch video programming is unlikely to rise sharply. At least as long as most consumers have to work, eat and sleep. That means that some distribution conduits will be hurt. That may be TV and movie theaters. But, it also means that there is no guarantee that these new, web-based partnerships will make a dime.
Too much programming. Too few hours.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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