Media decoder: In agreement with Netflix, new revenue for CBS

CBS will likely earn approximately $ 200 million over the next two years under the deal that has reached this week with Netflix to stream TV shows from the library's network, an analyst estimated on Wednesday.

The two companies have announced a non-exclusive deal for some TV shows on Tuesday, giving CBS a new source of incremental revenue and giving Netflix promote its customers a little more streaming content.

The content includes "Medium", which has recently been cancelled; "Flashpoint", which is shared with CTV in Canada; and a series of old shows as "Frasier," "family ties" and "Cheers." (Some of the shows included in the package are associated with other networks, but were distributed from the study of CBS).

Above all, the deal excludes all largest exhibitions of CBS, reaffirming the position of network television is first and the Web is in second place for now.

Terms of the agreement were not disclosed. Barclays analyst note, said Wednesday that the deal was worth about $ 200 million to CBS.

"We believe that the deal is a clear positive for CBS, the network is now able to monetize its library content in new ways and incremental without detracting from that content or undermine existing revenue streams from ad buyers or distributors," said analyst note.

Scott Koondel, President of CBS Television Distribution, struck a similar tone in a statement announcing the deal. "We will continue to pursue distribution partners that are not exclusive extra additive to our global business," said Mr. Koondel.

The two-year agreement gives CBS an opportunity to renew for another two years.

For now, CBS remains the only one of the four major networks that do not share any TV shows with Hulu, the site Web TV which is partly owned by ABC, Fox and NBC. NetFlix has already offered by other major networks, but don't have the rights for as many shows as Hulu does.

The fact that companies like Netflix are bidding for the rights to transmit TV programmes is seen as a positive for networks like CBS, as long as the networks don't give their main source of income, the old-style broadcast.