CBS Corp. is nearing a deal to license its broadcast network and some cable channels for Hulus forthcoming cable-style, live-streaming service, people familiar with the matter said.
CBS will bring in more than $3 per monthly subscriber initially for its channels, with increases over the multiyear deal that could get to more than $4, the people said, which is more than what it makes from traditional pay-TV distributors. The arrangement includes carriage of CBS Sports Network and Pop, the pop culture cable channel CBS co-owns with Lions Gate Entertainment Corp.
The pact also offers the option for Hulu to include CBSs Smithsonian Channel and the CW Network in the future, and allows it to sell CBSs premium network Showtime as an add-on to the live-streaming service. Hulu already allows subscribers to its subscription video-on-demand service to buy Showtime for an additional $8.99 a month.
Hulu wont be getting full current seasons of popular CBS shows like NCIS on demand, which will remain exclusive to CBSs own streaming service CBS All Access, the people said. Hulu will receive a few recent episodes of such shows to offer on-demand for customers of the new live service.
Hulu has already signed up other major network groups, including Walt Disney Co., 21st Century Fox and Time Warner Inc., to offer channels on its live-streaming service, set to be priced around $40 a month and debut in early 2017. The streaming service hopes to offer a more personalized, intuitive version of cable TV than that offered by traditional pay-TV distributors and even newer streaming entrants.
