• by Gavin O'Malley  @mp_gavin, November 10, 2005

AOL News has added CBS Digital Media video and text news to its content mix, the two companies said Wednesday.

Although CBS, like AOL, is making an aggressive push to drive traffic to its own Web sites, the branding potential of the deal was enough to outweigh any CBS concerns that the arrangement helps a rival gain eyeballs.

"As opposed to traditional, the Web lives and thrives in shades of gray," said Betsy Lake Morgan, senior vice president of CBS Digital Media and general manager of CBSNews.com. She added that CBS's current priority is building its brand online, and large portals are essential to that end. "It's important right now to have our brand everywhere."

AOL News aggregates video and text news from many other publishers, including ABC News and CNN. AOL News properties will also include CBS News links directing consumers to CBSNews.com for additional stories.

Morgan indicated that America Online was paying CBS for its syndicated content. "Financially, they made the deal very attractive for us," she said.

Lewis D'Vorkin, vice president and editor in chief of AOL News and Sports, would not comment on the financial terms of the deal.

From 1999 to 2003, CBS News was the exclusive news provider to America Online's network of sites, according to Morgan. While "not unbelievable," Morgan said CBS was very happy with the traffic generated by their first relationship. Until 1999, ABC News had provided such content to AOL.

In return for the exclusivity, CBS agreed to promote AOL on the air during CBS News programs.

Then as now, AOL and CBS shared ad revenue generated from any AOL property on which CBS News programming appeared.