CBS RAKING IN INTERNET BUCKS

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CBS will make a reported $25 million in ad sales with its internet broadcasts of March Madness this year.

By comparison, that’s nowhere near the $450 million dollars that the network will bring in for ad sales of its television broadcast of the NCAA basketball tournament. Still, it’s double what the network made just last year on its “March Madness On Demand” internet broadcasts.

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Plus, because of the low cost of broadcasting games on the internet, that 25 million represents $ 18 million in pure profit.

It also represents a trend. More and more sports content is going to be offered online.

“This is only the beginning,” said James McQuivey, an analyst at Forrester Research Inc. in Cambridge, Massachusetts. “More events will find this success in the coming year. The Beijing Olympics is an obvious one.”

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Major League Baseball is another sport that has been raking in extra cash because of people watching games on their computers.

Also, keep in mind, this is basically found money for the networks. Internet sources of revenue didn’t even exist when CBS negotiated its current tv deal with the NCAA. In fact, March Madness On Demand itself didn’t exist until 2006.

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Now CBS has exclusive rights for the internet broadcasts of March Madness. And they didn’t have to pay a cent for those rights.

That’s certain to change in the future.

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