TV, Affiliates and Digital Deals
CBS has joined the ranks of networks who are sharing profits with affiliates, their local stations, not affiliate marketers, in return for those stations driving traffic to the networks sites. Fox recently made a deal with their affiliates to distribute media in return for about 12% of revenues. I see many parallels between this and affiliate marketing. From Broadcasting & Cable.
CBS and its affiliates have agreed on the framework for a new revenue-sharing agreement that clears the way for the network to distribute its content on digital platforms and deals affiliates in on potential profit.
The pact, announced Thursday, gives CBS more flexibility to funnel shows to the Internet, video-on-demand (VOD) and other emerging platforms. In return, stations will receive a cut of proceeds, including incentives for driving traffic to CBS’ Website and other network platforms where they sample ad-supported CBS fare.
Sounds like a deal most affiliates should be involved in, driving traffic to merchants on a CPC or CPM basis in addition to a cut of the sales, well, maybe not all affiliates, just the ones who actually add value.
“In a rapidly changing multiplatform, multimedia universe, CBS and its affiliates must develop new business models and methods that best position us to maximize revenue and branding opportunities,” Freedom Broadcasting President Doreen Wade, chairman of the CBS affiliates board, said in a statement. “This agreement moves us in the right direction, recognizing the unique programming and promotional value that both parties bring to network broadcasting.”
Can I get an amen? This is comparable to getting the consumer in a buying mood before sending them off to the merchant site, and promoting the merchant in general.
“We recognize that, in today’s marketplace, it’s in our collective long-term best interest that the Network and the affiliates each leverage the full value of the assets they own,” said Peter Schruth, president, affiliate relations, CBS Television Network.
Merchants, do you have any affiliates you would hate to lose? There are many websites that have similar deals, why not branch out and secure trusted and loyal affiliates, not just the big boys like Fatwallet, by giving them a little monthly “bonus” or some kind of incentive to push your products and feature them on the front page. A little extra can go a long way, even if it is performance based, I know I always try to hit the bonus levels whenever I can. And the next big affiliate used to be the small affiliate getting only a sale or two a month.
