[opendtv] CBS Affiliates Board, Network Agree on All Access OTT Terms | Broadcasting & Cable

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
  • Date: Fri, 13 Mar 2015 19:45:35 -0400

So Bert. Now we know why CBS All Access was only available from CBS owned and 
operated stations. 

CBS was still negotiating the revenue split with affiliates. That deal is now 
done, and the local market business model for affiliated broadcasters has been 
protected (and compensated).

Regards
Craig

http://www.broadcastingcable.com/news/local-tv/cbs-affiliates-board-network-agree-all-access-ott-terms/138800

CBS Affiliates Board, Network Agree on All Access OTT Terms

Following three months of negotiations, the CBS affiliates board and the CBS 
network have come to terms related to CBS All Access, the network's $5.99 a 
month over-the-top service.

Participating affiliates get what Michael Fiorile, CBS affiliates board 
chairman, called a "piece" of the subscription monies, with the percentage 
ramping up as the subscription rolls increase.

"We are excited to have reached this groundbreaking agreement, which begins a 
new era in distribution by CBS affiliates in your respective markets," said 
Fiorile, president and CEO of Dispatch Printing Company, in an email to 
affiliates March 13.

Affiliate groups, such as Sinclair, Nexstar and Dispatch, can opt into the 
agreement the affiliates board has ironed out. If they don't, broadcasters can 
negotiate with CBS directly on a separate All Access agreement. In his email, 
Fiorile said the arrangement "reflects the interests of CBS affiliates."

While the networks' affiliate boards meet in conjunction with the NAB Show in 
Las Vegas each year, the CBS affiliates body will meet at the conference as 
well on April 14, specifically to discuss the terms.

CBS announced its All Access product in October. Leslie Moonves, CBS president 
and CEO, called it "another key step in the company's long-standing strategy of 
monetizing our local and national content in the ways that viewers want it."

Fiorile and Barry Faber, executive VP and general counsel at Sinclair, were the 
point people on the affiliates board's end of the deal. Ray Hopkins, CBS 
president of television networks distribution, and Marc DeBevoise, senior VP 
and general manager of CBS Interactive's entertainment division, were key 
figures on the network side.

CBS did not comment.

The agreement also covers Syncbak, the technology platform driving All Access.

"It was a tough negotiation, but it went well," said Fiorile. "Everyone is 
pleased."

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