CBS Launches Online Channel

08 May 2006

US network CBS is to launch an advertising-supported broadband television service.

The new network, monikered Innertube, will offer video streaming of internet-specific video programming plus shows from the broadcaster's library. The service will be entirely free to viewers.

The channel hopes to attract a younger audience to its on-air programs and is a response to advertisers' demands to reach viewers via the internet.

Comments CBS Digital Media president Larry Kramer: "The fact is that broadband usage is exploding. We're closing in on 70 million homes with broadband connectivity."

He adds: "In every discussion we're having with advertisers, the discussion includes interactive possibilities."

The introduction of Innertube comes less than two weeks before the broadcaster rolls out its fall schedule to advertisers in New York, where networks sell about three-quarters of their prime-time commercial inventory for the coming season.

CBS wants to demonstrate that it can deliver ads across many platforms, including TV, radio, billboards and the internet. And, most important, it wants to rake in more of the $8.5 billion (€6.69bn; £4.59bn) up for grabs during the upfront negotiations.

Data sourced from Wall Street Journal Online; additional content by WARC staff