The WSJ (sub req’d) is reporting this morning that CNN has struck a reciprocal linking/syndication deal with the publisher of a large network of local TV station websites:
The deal, with Internet Broadcasting, a privately held Minneapolis-based company that publishes the Web sites of 70 local TV stations, allows CNN to use local stories from any of those sites, and vice versa. As part of the deal, CNN is also taking a minority equity stake in the company.
From a consumer perspective, the new arrangement won’t look much different from what now exists on the sites of CNN’s chief rivals in online news, MSNBC and Yahoo. Like those sites, CNN.com will include local news among its top stories of the day, and surfers will be able to move back and forth between national, international and local news.
The big difference will be in the business arrangement that CNN has struck with its partner. MSNBC and Yahoo syndicate stories from outlets such as the Associated Press and Reuters. CNN, by contrast, hopes that the content-swap arrangement will drive up user traffic both on CNN.com and the local sites, allowing all parties involved to charge higher advertising rates. That would theoretically pave the way for Internet Broadcasting affiliates to expand their national ad sales.
And here’s more from Internet Broadcasting’s site:
As part of the relationship, CNN and Internet Broadcasting will also create a unique advertising opportunity that leverages CNN.com’s national audience with Internet Broadcasting’s local reach. To reinforce the strategic alliance, CNN will acquire an equity stake in Internet Broadcasting, joining Hearst-Argyle Television, Post-Newsweek Stations, McGraw-Hill Broadcasting and Split Rock Partners as investors in the company…
As part of their agreement, the companies will share local, national and international content important to online news consumers. Leveraging its network of TV station Web sites, Internet Broadcasting will supply local news content to CNN.com, which will appear on the home page as well as in the “U.S. News” and “Weather” sections. In turn, national, political and international content from CNN.com will appear on the home page and national news pages of Internet Broadcasting sites.
This appears very much like what Yahoo! is doing with its newspaper consortium partners.
