Google has signed a deal to carry CBS on the internet TV service it soon plans to introduce, the Wall Street Journal reported, citing sources familiar with the matter. The deal makes CBS the first major TV network to sign on to the new TV service, to be called Unplugged. The service will be housed on Google’s YouTube platform and is set to launch early next year. Google is also close to inking a deal to distribute channels owned by 21st Century Fox and is in advanced talks with Comcast’s NBCUniversal and Walt Disney, the sources said. 21st Century Fox and News Corp, which owns The Wall Street Journal, share common ownership.
Unplugged wants to be a low-cost option targeting consumers who either have resisted subscribing to traditional pay-TV or cut the cord due to rising subscription costs. Google is looking to offer a “skinny” bundle of live TV channels priced at USD 25-40 per month, according to media executives. YouTube declined to comment. The service will probably be separate from YouTube Red, the ad-free subscription offering the company launched last year. A curated portion of YouTube Red videos will be included as part of the skinny TV bundle, one of the people familiar with the matter said.
The Google initiative is being overseen by YouTube content partnership executives Kelly Merriman and Heather Moosnick, the sources said. Beside CBS, other channels from CBS that will be part of the YouTube offering include Pop and CBS Sports Network. 21st Century Fox channels under discussion include Fox Broadcasting, Fox News, FX, Fox Sports and National Geographic Channel, the people familiar with the matter say, while Disney-owned channels that could be part of the service include ABC, ESPN, Disney Channel and Freeform.
CBS has said it would seek a rate for its content on such services at around USD 2-5.99 per consumer per month.
One sticking point that has emerged in YouTube’s discussions with some programmers that YouTube is pushing for rights to overlay data on network feeds, for example, fantasy or sports stats on top of ESPN’s channel feed, or tweets alongside a show, people familiar with the talks say. TV networks are very protective of their live feeds. One worry about overlaying a Twitter feed next to a show, for example, is that trolls can overtake a conversation and turn things ugly easily—insulting an anchor. Media companies are also wary that YouTube will bundle their premium content alongside web-native videos and YouTube stars, which they perceive as lower value content.
