NBC Ventures into Online Video market

14 September 2006

NEW YORK: Entertainment giant NBC Universal has created a new company to distribute and profit from video footage on the web, tapping its affiliate television stations as well as other media companies for material.

The venture, dubbed National Broadband Company or nbbc, aims to give media firms greater muscle in competing for online advertising dollars as internet upstarts like YouTube.com benefit from an explosion of free viewing online.

Nbbc will let websites that meet certain size and quality criteria receive free programming from the NBC network and other content partners in return for a cut of the ad sales. Proctor & Gamble and JPMorgan Chase are the first advertisers to sign up.

In an example presented at the launch, the site Howstuffworks.com, which generally does not produce its own video, could now cherry pick clips from Forbes.com to run within stories related to finance.

Execs say nbbc will focus initially on short clips but over time may experiment with longer programs, homemade videos and blogs.

Data sourced from Adweek (USA); additional content by WARC staff