CBS Radio on Wednesday introduced a video creation technology at four of its New York stations that will package traditional radio content such as celebrity interviews as online videos and distribute them to multiple locations on the Internet.
Radio, like other forms of traditional media, has seen its audience fragment as younger listeners gravitate to MP3 players, Internet radio, and other forms of digital entertainment. But radio is seeking to capitalize on the popularity of online video to win younger fans back, along with advertisers who have misgivings about the makeup of the radio audience and the reach of their ads.
The video creation and distribution technology, which is being supplied by New York-based WorldNow, will allow the stations to create and distribute videos and also insert advertising and add sponsorships.
"In the radio business we talk to a lot of newsmakers, celebrities, musicians, and sports stars in our studios on a daily basis so there are a lot of opportunities for radio stations to manifest themselves visually," said David Goodman, president, Digital Media and Integrated Marketing, CBS Radio.
Radio stations also cover events that have broad appeal such as concerts and professional sports, and events of mostly local interest such as parades, fairs, sponsored expos, and video simulcasts of radio shows.
"We needed one video platform to integrate across the entire company to not only take advantage of the things we do but to also go ahead and grab video feeds from other places on the web that are of interest to our audience," Mr. Goodman said.
CBS Radio did not divulge how much money it is committing to its video project, but parent company CBS Corp. has been very aggressive in its pursuit of content distribution opportunities on the Internet and on mobile phones.
CBS Sports streams the NCAA Division 1 Men's Basketball online, which has grown into one of the most popular unique events on the Internet. In May, CBS acquired Internet media company CNET for $1.8 billion in cash. And in February CBS Mobile signed a deal with Loopt that will allow CBS to incorporate awareness of a consumer's location in its mobile ad campaigns.
"CBS has carved out great niches in radio with entertainment, sports, and news which allows us to help them discover whole new affinity relationships with their audience," said Gary Gannaway, CEO of WorldNow.
The radio industry took a long time to embrace the Internet and when it finally did, its engagement was limited to audio feeds of its programs on the Internet and podcasts.
But as social networking and online video have grown in popularity, the industry is beginning to see potential for fundamental growth away from its exclusive dependence on over-the-air broadcast.
"There are huge benefits happening as a result of new distribution for radio," Mr. Goodman said. "We see it every day in our ability to engage our streaming audience and to integrate with mobile devices."