NBC's Streamed Online Video Lands Ad Partners

Includes: CNET, GE
by: Frank Barnako

Procter & Gamble (NYSE:PG) and JP Morgan Chase (NYSE:JPT) will be charter advertisers on NBC's new joint venture with affiliates to stream video programming on their Web sites.

The National Broadband Company [NBCC] said two dozen other media producers, including CNET (NASDAQ:CNET), Forbes.com and Ziff Davis, will also make their content available for syndication. Web sites can either share in revenue from pre-roll ads NBC will insert or they can pay fees for showing the content and selling their own ads. There was no announcement of when the new venture will begin operations.

Fred Wilson, a VC in New York, calls the NBCC move a big deal. "Video is being watched on the Web and it's going to move to the living room," he blogged. Wilson suggests program producers might be happy with getting a slice of ad revenue from NBCC sites, but imagine how much happier they'd be if YouTube.com had the content, too, as they'll be able to. That could mean huge advertising revenues.

The New York Times has a story about NBCC this morning, too. Quoting Randy Falco, NBC Universal Television Group (NYSE:GE) president: "If we really want to compete with big aggregators like Yahoo and Google, we need our video in as many places as possible."

Also, NBC and Warner Bros. Television Group (NYSE:TWX) announced a partnership for streaming and video sales of WB's "Studio 60 on Sunset Strip" series which debuts on the TV network next Monday. NBC gets streaming and on-demand cable and satellite rights; WB gets to sell "permanent downloads of episodes" after they are broadcast.

Meanwhile, Radar Online reports "Peacock staffers are sweating bullets over the impending release of what the company is calling TV 2.0, a proposed top-to-bottom reorganization of the network to streamline it for the Internet age." An NBC staffer is quoted saying "Everyone is waiting for the ax to fall."

Disclosure: The author owns shares in Time Warner and P&G