[Ecommerce] CBS says in talks with Google for video search

[Manon Ress]

CBS says in talks with Google for video search

http://today.reuters.com/news/newsArticle.aspx?
type=industryNews&storyID=2005-

By Kenneth Li and Michele Gershberg

NEW YORK (Reuters) - U.S. television network CBS is in discussions
with Internet media company Google Inc. for video search and on-
demand video, CBS chairman Leslie Moonves said on Tuesday.

Viacom-owned CBS, which is in the process of splitting itself apart
from the faster growing MTV cable networks and Paramount film
studios, is seeking other distribution outlets for its top ranked
shows including the CSI franchise.

"We're talking to them about a whole slew of things including video-
on-demand, including video search," Moonves told Reuters in an
interview regarding Google, ahead of Reuters's Media and Advertising
Summit next week.

Such talks are occurring across the media industry at a time when
entertainment companies are wary of new technologies like the
Internet and video games that appear to siphon off consumers of
traditional media.

Moonves, however, said he saw more opportunities on the Internet to
boost CBS's reach and bottom line.

CBS's discussions have not been restricted to Google and have also
included talks with Yahoo Inc. (Nasdaq:YHOO - news), although no
deals have yet been struck.

"They need our content, we need their technology," he said, referring
to broader discussions with Internet companies. "We argue about which
is more important. I think ultimately my content, no matter how you
get it, content is still the most important thing."

In September, Viacom's UPN television network struck a deal with
Google to offer exclusive video streams of its "Everybody Hates
Chris" comedy show. The premier show was offered for four days at
Google Video service.

Google is just one of a handful of big Internet companies that seek
to offer video programming on the Web. Yahoo is seeking to license
more video for its service.

But finding a way for media and Internet companies to work together
has not been without snafus. Shortly after Google debuted its video
search in June, copyrighted videos from random users crept onto the
service, drawing the ire of the very media companies Google aimed to
attract.

Google removed the videos after a few days.

Then there's digital video recording technology company
TiVo Inc., whose early plans to let some of its customers send
recorded videos directly to Apple Computer Inc.'s new iPod digital
media player could set the stage for the next copyright fight.

"There's some intellectual property questions about the situation,"
Moonves said about TiVo's plans.

What's certain is big media needs to offer legitimate alternatives.
"Video on the Internet is taking off like mad," said Josh Bernoff, an
analyst at Forrester Research, which has reported that about 46
percent of online households were already watching videos.

Eyeing how the music industry's slow reaction to new technology
ravaged sales, U.S. television networks have been busier
experimenting online, Moonves said.

"They'd be better off moving as quickly as possible to embrace these
technologies," Bernoff added about television networks.

MORE VOD WITH LES

More shows are expected to be offered to cable, satellite television
and wireless services as well, Moonves said.

CBS announced a one-year deal to let Comcast Corp. cable customers
view episodes of some of its shows at the click of their remote for
99 cents earlier this month.

Moonves, who is also co-chief operating officer of Viacom, said the
company was in talks with satellite television operator DirecTV Group
Inc. for similar deals, although he did not specify when, or if, any
deal would be struck.

"We've spoken with DirecTV, sure," he said. "I think you'll see more
and more of those deals happening along the way, as well as you'll
see more and more deals like ABC did with the iPod."

Although Moonves did not address discussions with Apple's iTunes
service, which began selling episodes of ABC's "Lost" and "Desperate
Housewives" in October, sources have said the two are in discussions.


************************************************
Manon Anne Ress
manon.ress@cptech.org,
www.cptech.org

Consumer Project on Technology
1621 Connecticut Ave, NW, Washington, DC 20009 USA
Tel.:  +1.202.332.2670, Ext 16 Fax: +1.202.332.2673

Consumer Project on Technology
1 Route des  Morillons, CP 2100, 1211 Geneva 2, Switzerland
Tel: +41 22 791 6727

Consumer Project on Technology
24 Highbury Crescent, London, N5 1RX, UK
Tel: +44(0)207 226 6663 ex 252 Fax: +44(0)207 354 0607