Consumers keeping an eye out for CBS's
CBS will make news video content from 16 television stations available through Yahoo!, and Yahoo! users will have access to 10 to 20 related video stories per day, from 16 different regions, including New York, Los Angeles, Philadelphia, San Francisco, Boston, and Chicago. The companies will share ad revenues through the agreement.
The CBS deal may not make a huge difference for Yahoo!, though. Just last week, CBS made a significant agreement to distribute content and share ad revenue through rival YouTube as well.
I recently took a look at CBS for our "Fool on the Street" series. Digital distribution is one of the ways the company seeks to bolster its relevance, as digital video recorders and Internet video become increasingly common ways to "time shift" content. At the time of my last article, CBS head Les Moonves pointed to CBS's agreements with outlets like Yahoo!, Apple's
As I pointed out in that "Fool on the Street" piece, agreements like this one show CBS's awareness of the importance of digital distribution. Nonetheless, I wonder whether CBS is ready to put the time and effort into innovation it may need to excel -- in other words, drum up enough sales growth -- in these disruptive times. (Disney's
CBS shares have increased 13% over the past six months. Still, investors might want to reserve some of that optimism until they've got more proof that CBS's digital strategies are working.
Tune in for further Foolishness:
- Should you buy Google and sell Yahoo!?
- Fool on the Street: CBS
- Not long ago, investors booed Yahoo!.
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Alyce Lomax does not own shares of any of the companies mentioned.