CBS Starts Online Channel

CBS Corp. continued its aggressive push online Thursday by launching a broadband channel with its own slate of shows -- leapfrogging ahead of other broadcasters in the search for Internet audiences.

The website, named Innertube, is the network’s latest bid to goose Internet advertising revenue and attract younger viewers to its on-air programs.

CBS executives said the site, at cbs.com/innertube, also would become a clearinghouse for free viewing of TV reruns, including current, classic and canceled shows -- once the network reaches an agreement with its affiliates on which shows they can use.

“There are tremendous opportunities online to enhance our existing business,” said Nancy Tellem, CBS Paramount television group president.

The unanswered question as big networks join upstarts in putting uncountable hours of video online: Who’s going to watch all this stuff?

“If you’re a broadcast network, you’re one of maybe 200 channels,” said Jupiter Research analyst Todd Chanko. “On the Web, you’re one of an infinite number of choices.”

CBS executives counter that they will promote the service on TV, and their free online broadcast of the NCAA basketball tournament in March showed that they could attract big audiences online. Users of March Madness on Demand watched 19 million streams of live and archived games, and the online effort pulled in an additional $4 million in ad revenue.

“They are throwing stuff against the wall to see what sticks,” said Stacey Lynn Koerner, an executive with advertising and marketing company Interpublic Media. “That’s the beauty and the frustration of the times that we live in: It’s not one-size-fits-all anymore.”

The introduction of Innertube comes less than two weeks before CBS rolls out its fall schedule to advertisers in New York, the May ritual known as “the upfront.” After glitzy presentations, the networks sell about three-quarters of their prime-time commercial inventory for the coming season to advertisers.

CBS wants to demonstrate that it can deliver ads on compelling programming across many platforms, including TV, radio, billboards and the Internet. And, most important, CBS wants to rake in more of the $8.5 billion up for grabs during the upfront negotiations.

On Innertube, Chili’s and Dr. Pepper are paying to have their products featured in “Greek to Chic,” a makeover show about college students. Other early advertisers include Pier 1 Imports and Verizon Communications Corp.’s SuperPages.com.

“We’ve talked about this for 10 years now, the dawning of the digital age and the migration of television shows to the Internet,” said Brad Adgate, research director for ad-buying firm Horizon Media. “It’s finally here, and it’s all coming at once.”

Walt Disney Co.’s ABC network on Monday made several popular shows, including “Desperate Housewives” and “Lost,” available on its website for free as part of a two-month experiment. The ABC and CBS services won’t let viewers skip online commercials.

CBS plans to roll out broadband shows through the summer, including a dating show and an entertainment magazine.

Innertube will also include promotional material for TV shows, including features that currently appear on CBS.com. Those include a behind-the-scenes look at “Survivor,” an online talk show about “Big Brother” and, starting this weekend, footage from rock band Pearl Jam’s performance on “The Late Show With David Letterman.”

The quickly changing landscape is causing pain for television station owners and Hollywood guilds, which are trying to ensure that they get their fair share of digital revenue.

Tellem said CBS was still negotiating with its affiliates to bring TV shows to Innertube. Also likely to appear are shows that were canceled, such as “Love Monkey,” or ordered by the network but not picked up.

In the meantime, the Web-only shows are a bolder step. With production costs for online shows much lower, CBS said it can target much narrower audiences than on broadcast television, where shows need millions of viewers to survive.

“It lowers the bar in terms of the size of audience you need to make a show successful,” said Larry Kramer, president of CBS Digital Media.