CBS Tries to Out-Hulu Hulu with TV.com
As was expected, CBS is revamping TV.com to be a video-viewing destination. The well-URLed site, which six months ago started featuring Hulu content, has added CBS shows, and Monday is announcing deals for shows from MGM, Sony, PBS, Endemol USA and Showtime, according to reports tonight.
Context & Ripple Effects
CBS had already been pursuing broader web distribution in 2007, including its effort to put the web into its network strategy. TV.com began carrying Hulu material six months before this revamp; adding CBS programming turns that site into a more directly controlled viewing destination rather than solely a distribution outlet for another service.
First-order effects
- CBS gains a branded web destination for its own shows, alongside the Hulu material already available on TV.com.
- Viewers of TV.com can find CBS programming within a site being repositioned around video viewing.
Second-order effects
- Hulu must contend with a distribution partner whose site is becoming a destination for CBS programming in its own right, not merely a place where Hulu content appears.
- MGM, Sony, PBS, Endemol USA and Showtime would gain another online outlet if the reported TV.com agreements are announced.
Third-order effects
- CBS's move points to broadcasters treating their web properties as audience destinations, pairing owned programming with licensed catalogs rather than relying only on third-party distribution.
- If multiple rights holders pursue the same model, online video competition will turn more on control of the viewing destination and its catalog mix.
The trend: Broadcasters are moving from simply placing shows online to building branded video destinations that combine owned and licensed programming.