Through partnerships with cable operator Cox Communications, DVR pioneer TiVo (NASDAQ:TIVO), and content packager TVN Entertainment, CNET will offer original content adapted from its websites as video-on-demand programming.
For CNET, the push to move some of its content beyond its online base makes perfect sense. The company has spent the past few quarters beefing up its proprietary multimedia features. From webcasts and podcasts at CNET.com to streaming music at Download.com, CNET has made the most of the migration of dial-up users to speedy broadband connections. CNET estimates that the number of videos streamed through its network has doubled over the past year.
That's why making the move to VOD is a great strategy. Sure, limiting CNET's insightful articles, reviews, and video clips only to the readers of its many sites would work just fine, but it's even better to further raise CNET's profile through these old-school syndication efforts.
TiVo had already tested the waters with CNET over the winter. Users who received movie trailers and special features during scheduled TiVo updates were also getting some of CNET's content for free.
CNET aims to monetize the service by selling ads and brokering revenue splits with the various platforms. It already has Best Buy (NYSE:BBY) lined up as a charter sponsor on that front. That's fine, but for now, this new service is more important as a great way to build the CNET brand.
CNET shares have risen 16% since being singled out this past summer toRule Breakersnewsletter service subscribers. The S&P 500 has only mustered a 4% advance in that time. TiVo and Best Buy are activeMotley Fool Stock Advisorselections.
Longtime Fool contributor Rick Munarriz is a fan of CNET, but he does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
