TV Networks to Try Online Syndication

In an attempt to increase audiences for their programs, CBS, NBC, and Fox will turn to online syndication of their top shows. According to an article in Variety, the new trend is a major departure from the old strategy of having only one place at one time to see a particular show.

As Variety notes, the new move comes in response to declining revenues for traditional network TV as online sites continue to increase their share of advertising dollars. To quote Variety, "It's an expand-or-die bid by broadcasters."

The new plan involves putting hit shows out into cyberspace in order to build audiences among the estimated 80-100 million people who use such sites as Yahoo, MSN, and AOL each month. Current estimates put the online advertising amount at $15-17 billion a year just in the United States. That is estimated to increase to $26 billion in the next 4 years.

According to CBS Interactive President, Quincy Smith, as quoted by Variety, "You no longer have the leverage of scarcity. Now you have just the opposite situatiion. So you want to put your {shows) in as many places with different distributors who attract a slightly different audience."

NBC is counting on the quality of its programs. George Kliavkoff, who will head the online program for the network, says, according to Variety, "We think that on any platform, quality always wins. We have the quality content that will aggregate an audience." The NBC approach to online programming will include free movie and TV series downloads. The network will receive its money from the advertising that will be embedded in each program.

Why the move away from exclusivity? It is simply a recognition that younger viewers-who are also computer users-have a variety of options for their entertainment, not just TV. It's also an attempt to find ways to raise advertising rates by getting more viewers in the form of online viewers. Another reason for the new venture is to create more promotion for network programs, current and yet to be introduced. Network executives are hoping that "word-of-blog"promotion will make it easier for fans of shows to get the word out to others, according to Variety.