CBS radio and Yahoo! join forces

By: Allison McNeal

Along with newspapers that are constantly reorganizing and combining forces with other companies, radio stations and Internet sites are merging as well.

CBS radio recently announced that it will be joining with Yahoo! music’s Launchcast radio, which combines Launchcast’s 150 stations with the more than 150 stations operated by CBS.

According to crainsnewyork.com, a new CBS radio player will become part of the Yahoo! music site and will be incorporated into news and sports sites as well, giving new exposure to stations like WFAN-AM.

Along with Yahoo! music, CBS will sell advertisements to other stations, which could expand their company even more.

“This announcement… reinforces our company’s position as the No. 1 Internet radio company in the world,” said David Goodman, president of digital media and integrated marketing at CBS.

CBS also is looking to combine with AOL radio this coming spring.

Even though these companies are increasing their ad-sales sharing, growth of online radio is continuing to lose advertising dollars to the Web.

According to this article, the current ad recession has intensified the pain for radio and pressured operators to find new revenue streams.

At the same time as the ad recessions, stations like WCBS-FM and WWFS-FM are prospering from Yahoo! and CBS radio’s local ad sales expertise. Internet radio operators have been building large audiences for their online stations, but have not managed to make money from the new medium.

Observers say that Internet and terrestrial radio have reached a point where they need each other. “Both sides are reaching across to see if they can tap into the strengths of the other party," said Paul Verna, senior analyst at eMarketer.

Even though advertising sales are in a slump, CBS and Yahoo! main objective is to be a exponential force in the radio industry.