CBS dances alone ... for now

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Will CBS jump on the Hulu bandwagon?

Such a move would seem to make sense. Hulu already has ABC, NBC and Fox on its service, not to mention tons of library product. It doesn’t make any money, but then again what online video site does? At least by becoming the online home for television content, Hulu has a chance to succeed.

Certainly the heat will be on CBS, which has been criticized by Wall Street for its pricey $1.8-billion acquisition of online portal CNET last year. CNET was to become the cornerstone of CBS’s Internet strategy. Its own video site, TV.com, which looks remarkably similar to Hulu, is growing but does not have nearly as much product or buzz as Hulu. CBS has had tremendous success with its online coverage of the NCAA basketball tournament, but that happens only once a year.

CBS’ issue with Hulu is exclusivity. CBS’ strategy is to put its content all over the Web while keeping control of advertising. By partnering with Hulu, CBS would have to allow Hulu to act as distributor and salesman. In the wake of the Disney deal, CBS said it believes ‘controlling our own rights...in all media preserves its value in a multi-platform system.’

Another issue for CBS may be more philosophical. While Disney, News Corp. and NBC Universal have lots of partnerships with rivals, CBS has generally embraced a go-it-alone strategy under its chief executive, Leslie Moonves, with the exception of its joint venture with Time Warner’s Warner Bros. in the CW network. But that was out of necessity and face-saving.

So for now, CBS will likely sit tight. Joining Hulu, however, would mean acknowledging that the CNET deal hasn’t panned out as hoped, and that might be a tough pill for Moonves and his Internet guru Quincy Smith. Furthermore, its ratings are on the rise, a claim no other broadcast network can make this season, so it doesn’t need to rush to a deal for defensive purposes. And, as Broadcasting & Cable’s Claire Atkinson noted, CBS may not want to alienate cable operators by joining up with Hulu. CBS counts more heavily on compensation from cable operators in return for carrying its TV stations than rivals NBC, Fox and ABC.

But ultimately if Hulu’s popularity continues to explode, CBS will likely have to go play nice with everybody else.

--Joe Flint

Photo: Moonves by Nicholas Roberts / AFP/Getty Images