YouTube content deal with CBS unravels - WSJ

 

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Posted on 21 Feb 2007 at 10:35

A deal to let YouTube users watch clips from CBS shows such as 'The Late Show with David Letterman,' has broken down, according to the Wall Street Journal.

Google and CBS had been closing in on a multi-year deal, the paper said, citing sources close to the matter. The companies also discussed ways to peddle CBS Radio advertising spots to Google advertisers, the paper said.

But the media company and the Internet search company could not agree on issues such as how long the deal would run.

Although the talks could be revived at some later date, the paper said, for now Google and CBS intend to work together only on more modest initiatives.

Google, which agreed last year to acquire YouTube for $1.65 billion in stock, is currently working on a deal to offer video from the BBC, said the WSJ.

Traditional media companies are looking for ways to court online users as viewers split their leisure time surfing the Web and using various digital media devices, such as Apple's iPod.

Media companies including Viacom, News Corp and General Electric's NBC Universal have discussed launching their own joint competitor to YouTube, but industry sources have said earlier that differing interests have stalled plans.

CBS and Google were not immediately available to comment.

Author: Reuters