CBS: Broadband Expands Programming's Reach, Doesn't Reduce TV Viewing

--CBS Interactive Launches Intel-Sponsored HD Broadband Video Service

--Quincy Smith Promoted to CEO of CBS Interactive

CBS Interactive has released initial results from an ongoing study of
around 50,000 consumers who have watched full episodes of CBS
shows streamed online across its Internet distribution network, the CBS
Audience Network (note: the latter consists of around 300 partners
including TV.com, AOL, Microsoft, Yahoo, Comcast, Joost, Bebo,
Netvibes, Sling Media, Veoh, Automattic, Brightcove, Clearspring,
Goowy Media, meebo, MeeVee, Musestorm, Ning, RockYou!, Slide,
VideoEgg, Voxant and vSocial, as well as the Web sites of CBS's own
TV, radio and affiliated stations). According to CBS, the study, which
was conducted by Magid Media Labs, demonstrates 1) that its
streaming of full episodes attracts a younger audience; 2) that online
viewers are incremental to broadcast viewers; and 3) that online video
streaming actually drives Web viewers to traditional television.

Among the new study's specific findings:

• The median age of those streaming full episodes of CBS
  programming online is 38.
• 35% of the online video-watching audience said they were now more
  likely to watch CBS programming on traditional TV as a result of
  having connected with the shows online.
• Nearly half of CBS's online video streaming audience is incremental,
  with 46% saying they watch only or mostly online. A majority of these
  viewers said that having programming available online is not a factor in
  their decision not to watch it linear TV, meaning that their online
  viewing is additive.
• 68% of respondents said that the CBS Audience Network has the
  "right amount" of advertising.
• 50% of respondents correctly recalled the brand featured in an ad they
  saw during their viewing experience.
• 18% of those who recalled an ad said that they were more influenced
  to make a purchase decision, and purchase intent was even higher
  (31%) for certain items like consumer packaged goods.

"The results are clear: by making their programming available through
the CBS Audience Network, CBS has expanded the reach and audience
for its content without impacting their traditional television
viewership," Jaime Spencer, director of Magid Media Labs, said in a
prepared statement. "In fact, nearly half of CBS's online audience is
composed of viewers who only or mostly watch online, which opens
the door to a net gain of 21% of Web-only viewers who are now more
likely to watch TV because they connected with the show online."

In other CBS Interactive news:

• The company has launched an HD broadband video service on
  CBS.com, called CBS HD Gallery, and has secured Intel as the new
  service's exclusive sponsor. At launch, the service offers full
  episodes and clips from such shows as "CSI," "Survivor," "How I
  Met Your Mother," "Big Brother," "The Amazing Race," and
  "The Big Bang Theory." The content is delivered through
  CBS.com's recently updated video player. As part of its
  sponsorship deal, Intel is receiving prominent and immersive
  placement throughout the service, via an advertising campaign that
  includes site skins, display ads, sponsorships and community
  integration (through, for example, real-time chats and activity
  feeds). "Everyone knows that the world of entertainment is quickly
  shifting to digital video, from the creation of original Webisodes
  and home videos, to streaming TV shows online and an increasing
  amount of high-definition programming," Heather Dixon,
  consumer marketing manager at Intel Americas said in a prepared
  statement. "We're loading Intel-based laptops and PC's with a
  variety of HD and video technologies and blazing fast processors so
  consumers can enjoy a stunning online experience from innovative
  sites like CBS HD, on the go or in the home. In fact, the timing of
  the CBS HD player couldn't be more perfectly aligned with our
  own introduction of Intel Centrino 2 mobile technology for
  notebook PC's that offers native HD support and the battery life to
  enjoy several CBS online shows with one charge."
• The company recently released three more classic TV shows,
  together with related clips, on the CBS Audience Network and
  CBS.com: "Dynasty" (Seasons 1 and 2), "Beauty and the Beast"
  (Season 1), and "Have Gun--Will Travel" (Season 1). Classic TV
  series that the company has previously made available on the
  service include "The Love Boat," "Beverly Hills 90210," "Twin
  Peaks," "Star Trek," and "The Twilight Zone."
• Following the completion of its $1.8 billion acquisition of
  high-tech news service, CNET, CBS has promoted Quincy Smith
  from president to CEO of CBS Interactive, and has appointed
  former CNET CEO, Neil Ashe, as president of the division. CBS
  Interactive now has five business units: Entertainment (includes
  CBS.com, the CBS Audience Network, and CNET's Gamespot.com
  and TV.com), Technology (includes CNET's flagship news service),
  Sports (includes CBSSports.com and CBSCollegeSports.com),
  Business (includes ZDNet and CNET's BNET.com), and News
  (includes CBSNews.com and CNET's News.com). CBS recently
  began offering programming from its CBS News arm on
  CNET.com. The first CBS News video to air on the service was an
  in interview between "Early Show" anchor, Harry Smith, and
  CNET senior editor, Natali Del Conti, in which they discussed
  hands-free mobile devices. The interview originally aired after an
  "Early Show" report on a new California law that outlaws use of
  handheld mobiles while driving.