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CBS Strikes Deal To License Channels For Hulu Streaming Service, Including Sports

Hulu has "struck a deal to license" CBS' broadcast network and cable channels for its live-streaming service, "bulking up the lineup for its highly anticipated launch in the coming months," according to Shalini Ramachandran of the WALL STREET JOURNAL. Sources said that CBS will "receive more than $3 per monthly subscriber for its channels initially, with its take under the multiyear deal possibly rising above $4." Those rates "exceed what it charges traditional pay-TV distributors." The arrangement also "includes carriage of CBS Sports Network." The pact allows Hulu to sell CBS-owned Showtime as an "add-on to the live-streaming service." Hulu already "allows subscribers to its video-on-demand service to buy Showtime for an additional $8.99 a month." Ramachandran notes Hulu "won’t be getting on-demand access to full current seasons of popular CBS shows such as 'NCIS,' which will remain exclusive to CBS’s own streaming service" (WALL STREET JOURNAL, 1/5). In L.A., Meg James notes sports programming, including NFL and NCAA basketball games, will be "included in the CBS network stream." Other live events televised by CBS, such as the Grammys, will also "be part of the package." James notes Hulu’s upcoming "skinny bundle" service is "expected to cost consumers about $40 a month." Hulu has "agreements in hand with Fox and Disney to include their TV channels in Hulu’s planned skinny bundle" (L.A. TIMES, 1/5).

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