By Kenneth Li and Michele GershbergTue Nov 22, 2:36 PM ET
U.S. television network CBS is in discussions with Internet media company Google Inc. for video search and on-demand video, CBS chairman Leslie Moonves said on Tuesday.
Viacom-owned CBS, which is in the process of splitting itself apart from the faster growing MTV cable networks and Paramount film studios, is seeking other distribution outlets for its top ranked shows including the CSI franchise.
"We're talking to them about a whole slew of things including video-on-demand, including video search," Moonves told Reuters in an interview regarding Google, ahead of Reuters's Media and Advertising Summit next week.
Such talks are occurring across the media industry at a time when entertainment companies are wary of new technologies like the Internet and video games that appear to siphon off consumers of traditional media.
Moonves, however, said he saw more opportunities on the Internet to boost CBS's reach and bottom line.
CBS's discussions have not been restricted to Google and have also included talks with Yahoo Inc. (Nasdaq:YHOO - news), although no deals have yet been struck.
"They need our content, we need their technology," he said, referring to broader discussions with Internet companies. "We argue about which is more important. I think ultimately my content, no matter how you get it, content is still the most important thing."
In September, Viacom's UPN television network struck a deal with Google to offer exclusive video streams of its "Everybody Hates Chris" comedy show. The premier show was offered for four days at Google Video service.
Google is just one of a handful of big Internet companies that seek to offer video programming on the Web. Yahoo is seeking to license more video for its service.
But finding a way for media and Internet companies to work together has not been without snafus. Shortly after Google debuted its video search in June, copyrighted videos from random users crept onto the service, drawing the ire of the very media companies Google aimed to attract.
Google removed the videos after a few days.
Then there's digital video recording technology company TiVo Inc., whose early plans to let some of its customers send recorded videos directly to Apple Computer Inc.'s new iPod digital media player could set the stage for the next copyright fight.
"There's some intellectual property questions about the situation," Moonves said about TiVo's plans.
What's certain is big media needs to offer legitimate alternatives. "Video on the Internet is taking off like mad," said Josh Bernoff, an analyst at Forrester Research, which has reported that about 46 percent of online households were already watching videos.
Eyeing how the music industry's slow reaction to new technology ravaged sales, U.S. television networks have been busier experimenting online, Moonves said.
"They'd be better off moving as quickly as possible to embrace these technologies," Bernoff added about television networks.
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More shows are expected to be offered to cable, satellite television and wireless services as well, Moonves said.
CBS announced a one-year deal to let Comcast Corp. cable customers view episodes of some of its shows at the click of their remote for 99 cents earlier this month.
Moonves, who is also co-chief operating officer of Viacom, said the company was in talks with satellite television operator DirecTV Group Inc. for similar deals, although he did not specify when, or if, any deal would be struck.
"We've spoken with DirecTV, sure," he said. "I think you'll see more and more of those deals happening along the way, as well as you'll see more and more deals like ABC did with the iPod."
Although Moonves did not address discussions with Apple's iTunes service, which began selling episodes of ABC's "Lost" and "Desperate Housewives" in October, sources have said the two are in discussions.
Viacom's widely held class b shares rose 3 cents to $33.67 on the New York Stock Exchange in afternoon trading. Google shares rose $6.03, or
1.47 percent to $415.39 on Nasdaq.Copyright 2005 Reuters Limited.
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