• by Wendy Davis , Staff Writer @wendyndavis, May 22, 2007

CNN will build out its local news offerings through a deal with Internet Broadcasting, which runs Web sites for 70 local TV stations, the companies said today.

The alliance will allow CNN to run stories from those sites while also making CNN content available to them. CNN also will take an equity stake in Internet Broadcasting, which already counts Hearst-Argyle Television, Post-Newsweek Stations, McGraw-Hill Broadcasting and Split Rock Partners among its investors.

The move isn't the first time a large national/global Web publisher has used its site to distribute local TV news. Last year, for instance, Yahoo forged an agreement with CBS to add news clips from 16 local television stations. Fox, meanwhile, has tried to boost its local sites with video clips from prime-time TV shows.

Still, local TV stations haven't been able so far to gain as much traction online as large newspaper sites, portals or national TV news sites. Local TV stations' online ad revenue also lags, but shows signs of picking up. In February, Borrell Associates predicted that local TV broadcast stations will increase their total local online video ad takings by 178%, to $89 million, by the end of 2007. Almost all, 94%, of the 176 local TV stations surveyed by Borrell said they intend to sell video ads this year.