Recently, CBS News, a unit of CBS Corporation (CBS) entered into a strategic deal with GlobalPost, a global news provider, whereby the latter will provide international news coverage to CBS for a monthly fee. The terms of the agreement were not disclosed yet.
Immense competition from cable and online media, and the shrinking print advertising revenue had compelled CBS and other broadcasters to scale back on international coverage by laying off reporters and editors to save costs, and to look for other cost effective way to get international news.
As per the deal, GlobalPost would offer its network of 70 correspondents placed in 50 countries readily available to CBS News. Since its launch in January 2009, the site has been gradually increasing its video contents and reportedly has an average of 400,000 unique visitors every month.
GlobalPost has already signed strategic deals with 25 other news organizations similar to CBS News that pay syndication fees for GlobalPost articles. Apart from syndication fees, GlobalPost’s other source of revenue includes online advertising and individual paid memberships to the site.
Based in New York , CBS Corporation owns top media franchises and reports under four segments Television, Outdoor, Radio, Publishing and Interactive. CBS News stressed that the deal with GlobalPost reflects an effort to spread its global reach.
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