[06/29/06 - 12:00 AM]
CBS Television Network and Affiliates Association's Executive Committee Announce Important Multi-Tiered Agreement with Affiliates

[via press release from CBS]


NFL Cost-Sharing Agreement To Be Extended By Three Years

New Digital Arrangement Will Provide Network Increased Flexibility To Make Programs Available on Emerging Platforms, And Offer Affiliates a Share of the Revenue

CBS and the Board of the CBS Television Network Affiliates Association have negotiated the material terms of an important multi-tiered agreement that, upon approval by the affiliate body, will extend the NFL cost-sharing partnership by three years and allow both parties to benefit from new media opportunities.

Under the agreement CBS will have increased flexibility to make programs available on emerging platforms such as digital streaming on the Internet. At the same time, CBS affiliates will have the ability to promote the digital offerings on-air and receive a share in the proceeds, including Video on Demand and Subscription Video on Demand offerings. Affiliates will also receive a bounty for any traffic/Internet users they deliver to CBS.com and other CBS-owned Internet properties that result in participation/viewing of ad-supported content.

�We�re very pleased to have once again forged a mutually beneficial agreement with our affiliates,� said Peter Schruth, President, Affiliate Relations, CBS Television Network. �By sharing these costs with our broadcasting partners, we will be able to ensure signature, big-ticket programming like the NFL remains on CBS. At the same time, this agreement also encompasses new business opportunities that expanding digital platforms create for the Network and its affiliates. We recognize that in today�s marketplace it�s in our collective long-term best interest that the Network and the affiliates each leverage the full value of the assets they own. Our announcement today is the culmination of a number of thoughtful conversations we have held with the CBS Television Network Affiliates Association Board of Directors and the Association�s Futures Committee, and reflects the solid working relationship we enjoy with both groups and our affiliates. Several major affiliate groups, including Freedom, Gannett, LIN, Nexstar, Meredith and NY Times have already approved the new agreement�s terms, and we look forward to achieving full participation from our affiliate body.�

�This new agreement is a significant evolution in the network-affiliate partnership,� said Doreen Wade, President, Freedom Broadcasting, Inc., Vice President and General Manager, WPEC West Palm Beach, Fla., and Chair of the CBS Television Network Affiliates Association. �In a rapidly changing multi-platform, multi-media universe, CBS and its affiliates must develop new business models and methods that best position us to maximize revenue and branding opportunities. This agreement moves us in the right direction, recognizing the unique programming and promotional value that both parties bring to network broadcasting. We appreciate that the input of the Affiliates Association � drawing on the expertise of executives from stations and group owners from around the country � was an important part of the process that helped the Board negotiate the terms of a new agreement that we believe the remaining affiliates will approve.�

The CBS Television Network -- with more than 200 owned and affiliated stations reaching virtually every television home in the United States -- includes CBS Entertainment, CBS News and CBS Sports. The Network is a part of CBS Corporation (NYSE: CBS.A and CBS), a mass media company with constituent parts that reach back to the beginnings of the broadcast industry, as well as newer businesses that operate on the leading edge of the media industry.

  [june 2006]  

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