• by Wayne Friedman , May 5, 2006

Hoping to cash in on consumers' and Madison Avenue's growing interest in broadband video, CBS Corp. Thursday unveiled innertube, a new ad-supported online entertainment channel aimed mainly at younger viewers and younger-skewing advertisers. The move, which comes on the even of the 2006-07 upfront advertising marketplace is the most aggressive yet by a major broadcast network to utilize broadband as a new distribution channel.

Programming will focus on three areas: Original content, companion shows to existing CBS shows, and encore performances of CBS Corp. shows - all of which will be provided to consumers for free. Additionally, CBS will probably add some of its library product. Shows from CBS, CBS Paramount Television, King World and Showtime will be included, but not the new upcoming broadcast network, The CW.

Inventory on the new network will be made available to national advertisers during upfront sales, which could start in as soon as two weeks. Larry Kramer, president of CBS Digital Media, says innertube will be sold by itself, as well as in packages with the network and other traditional CBS-company TV outlets. He didn't go into details about how it would be priced.

"It's an era of ideas," said Kramer, about innertube. "This is a moment in history where advertisers and programmers have come together. We assume we'll get viewers coming from TV (CBS), but we hope to get [new] young viewers as well."

innertube already has a few charter advertisers who also have done some product placement deals on programs. For a new show, "Greek To Chic," a college-based makeover reality series, products such as Diet Dr Pepper and Chili's Restaurants appear. Charter advertisers include: Brinkmann Corporation, Cadbury Schweppes, Chili's, Pier 1 Imports and Verizon SuperPages.com.

The major question is whether CBS will stream its prime-time broadcast TV shows, a move that could disrupt CBS affiliates program exclusivity agreements. CBS executives said they are talking with affiliates right now about these type of deals.

Station executives say there is an existing digital agreement, which is part of their affiliate agreement, that CBS is looking to renegotiate. It gives stations a generous 50 percent cut of any digital money made by CBS. Recent network-affiliate digital deals such as the one with Fox did with its affiliates, give stations a much smaller portion of digital revenues, anywhere from 12.5 percent to 25 percent.

The name innertube would seem like a spin off of the popular YouTube.com. But CBS says that isn't the case. "But we wouldn't mind if their young viewers came over," says Nancy Tellem, President, CBS Paramount Network Television Entertainment Group.

New shows already on the innertube include: "Animate This!," where celebrities narrate personal events with animation; "BBQ Bill," a scripted sketch-comedy series. New summer shows this summer will be: "InTurn" in which a group of young hopefuls live together while going through "soap opera boot camp" with the ultimate goal of being cast on the CBS Daytime hit "As the World Turns," and "The Green Room," an entertainment magazine show that takes a somewhat funny look at CBS programming.

Recently, AOL/Warner Bros. launched a similar broadband site, In2TV.com, which serves up virtually all Warner Bros. TV library product. Recently, it added some new series. But Kramer says the difference is that In2TV can't draw from a traditional TV network for more current programming, which is what innertube will have at its disposal with CBS.

Ten advertisers also are participating in a test of streamed TV shows on ABC.com, ABCnews.com and SoapNet that the Disney network is conducting through June. ABC has not indicated whether it would extend the test beyond that, or whether the streamed shows would be part of its upfront sales.