Google's Deal With CBS Radio Still Likely; TV Deal Unlikely

People were expecting the substantial Google-CBS announcement at CES, but that didn’t come beyond the much-smaller YouTube 15-second video deal. Jessica Reif Cohen at Merrill Lynch believes that deal is still coming as the companies continue to negotiate. She said in the note that “The sticking points could revolve around control of ad sales and the size of a revenue guarantee that Google would pay to CBS for being able to monetize its television content through YouTube and other Google sites. We would expect a deal to include low quality Radio inventory for use with Google’s dMarc service, but do not believe a deal for CBS’s TV network or TV station advertising time is likely.”
She continues: “Assuming that an agreement included 10% of CBS Radio’s advertising time, this portion of a deal could involve approximately $200mn in revenue.”
AdAge has some additional negotiation details. It says: Google would offer CBS revenue guarantees for the content licensing and the reselling of traditional media inventory. The deal is also likely to include — though it won’t be articulated as such — a payoff to make up for YouTube’s previous copyright transgressions.
Google In Negotiations With CBS On Selling Radio/TV Inventory
Interview: Leslie Moonves, CEO, CBS Corp.
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