CBS expands TV affiliate access for OTT

DetailsMichelle Clancy | 10 April 2015

A new set of carriage agreements with affiliates means that the CBS streaming service CBS All Access will soon reach 55% of US households.

CBS announced deals with a number of local TV station groups, including Gray, Meredith, Nexstar, Raycom, Graham Media and others, and the broadcaster says more deals are on the way.

Markets added include Atlanta, Phoenix, St Louis, Kansas City and Las Vegas.

Last month CEO Les Moonves said the $5.99 per month service had 100,000 subscribers, largely on the back of the company's owned-and-operated stations in major markets.

Obviously, CBS' local TV stations are less than pleased about facing a competing service that can take ratings and ad revenue away from them. But after tough negotiations, the parties have agreed that participating affiliates will get an undisclosed "piece" of the monthly subscription fees, and that their percentage will go up as subscriber count does.

In general, affiliate groups can opt in to the affiliate board's deal, or can negotiate with CBS directly on individual pacts.