Belo And Yahoo Partner For Video Sharing
- by Mark Walsh @markfwal, January 10, 2008
Under the agreement, Yahoo News will offer dozens of news videos daily from Belo-owned television stations and the companies will share ad revenue generated by the clips. The deal covers all of Belo's TV markets except Dallas and Boise.
"Given Yahoo's leadership in online news, this partnership is yet another way for both companies to offer users a richer online experience while jointly creating business models which recognize that value," said Belo COO Dunia Shive in a statement.
The video deal builds on an existing newspaper alliance between Yahoo and Belo in which Yahoo's HotJobs career site powers help-wanted sections on Belo newspapers including The Dallas Morning News, The Providence Journal and The Press-Enterprise in Riverside, Calif.
Belo is also part of the broader newspaper coalition Yahoo formed last year that now includes 550 U.S. newspapers and spans cross-selling of classified advertising, content distribution and search.
While online video has exploded in the last few years, Web sites of local TV stations have generally been overshadowed by video-sharing sites such as YouTube and network news sites. By teaming with an online media hub like Yahoo, TV stations stand to boost audiences and advertising for their video clips.
"It's an excellent move by Belo to gain wider distribution points for local news beyond cable," said Gordon Borrell, president of Borrell Associates, which tracks local media spending. "The world is moving in this direction, and Belo and a few other broadcasters are staying ahead of the curve."
Borrell said he expects to see similar deals unfolding in 2008 as local TV stations increasingly partner with online portals as they have done with the national TV networks for decades.
A local media forecast released by Borrell Associates in December found that Internet-only companies for the first time in 2007 captured a larger share of local ad dollars than locally based traditional players, at 43%. Media companies hope to offset shrinking traditional ad revenue by teaming with erstwhile Web rivals such as Yahoo on classifieds and online video.
For its part, Yahoo gains additional video inventory targeted to regional audiences. The company said it now offers local news video from 18 of the country's top 25 markets, including New York and Los Angeles, through a previous agreement with CBS. Yahoo News had a 71% increase in video views on the section in 2007, according to the company.
Yahoo will handle ad sales for the pre-roll spots that accompany videos and offer both national and local campaigns to advertisers. Borrell estimates local video advertising will triple to $1.3 billion in 2008.
