Is CBS the next partner for TV Everywhere?

Time Warner and Comcast announced their TV Everywhere partnership plan today. My guess is that it won’t be long before we hear that CBS is next to join the party. The eye network has worked hard to protect its programming and has steadfastly refused to join Hulu, a separate online internet venture, owned by News Corp., NBC Universal and Disney-ABC TV, arguing it wanted to retain control of its highly rated programming.

CBS seems likely to join forces with the TV Everywhere initiative precisely because it increases the likelihood it can extract retransmission fees from cable operators such as Comcast. CBS, for instance, might agree to provide its shows online, as long as it gets paid for the programming that runs on cable systems.

Commenting on the Time Warner/Comcast agreement, CBS appeared to open that very door: “We are in favor of any proposal to help extend our business in such a way that is open and non-exclusive; consumer friendly; and responsible to our advertisers and shareholders. Initiatives like TV Everywhere and [Comcast’s] OnDemand Online are the very reason why we believe it’s imperative to control our own programming online. We look forward to continuing discussions with cable operators — and all distributors — to seek partnerships that recognize the value of our content.” CBS had no comment for this item.

The trial, announced today, will give 5,000 Comcast subscribers the ability to access Turner cable programming and other shows online for the first time. The TV Everywhere plan helps Time Warner protect its valuable cable programming business while giving Comcast the opportunity to expand its content business on a new platform. Still, even as the open-access plan has been heralded as ground breaking, it is essentially aimed at preserving the financial status quo for existing TV businesses since it is aimed at moving the ad load from TV to online.

Websites like Hulu, owned by News Corp., NBC Universal and now Disney-ABC, are offering broadcast network programming for free online to consumers, albeit supported by advertising. Some think that is a crazy idea given the recession and the lack of a strong for-profit model, though the partners have said Hulu could become a subscription site at some point in the future.

Time Warner and Comcast meanwhile have been discussing how this plan to migrate cable programming online might qualify for TV currency, the C3 commercial ratings. All parties are eager to preserve the $70 billion TV ad market, alongside the $120 billion subscription business. Online video advertising accounts for a tiny fraction of that figure, even as more viewers discover long form online video.

A spokesman for Nielsen said: “We have been working closely with Comcast and Time Warner on this issue and we expect that if the ads that run in the TV Everywhere programming are the same ads that appear in the original broadcast, then we will include the viewing in our TV ratings, including the C3 ratings.” Nielsen says it would regard such viewing as akin to DVR playback, though a spokesman said both parties had a lot of work to do before they were anywhere close to gaining C3 ratings for the shows online.

Speaking on a call today, Comcast CEO Brian Roberts said: “We are talking to Nielsen…for this to be part of the C3 ratings.” Burke is also confirmed that the Hulu video player would be used to serve up the content wherever viewers were accessing it online. Where else Hulu sits in this is yet to be determined.

But it would appear that if TV Everywhere gains momentum online and its sought after C3 accreditation, then viewers of online video can expect to be watching a whole load more ads in return for their shows.

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