As of October, Yahoo’s LAUNCHcast radio site had lost 43% of its monthly listeners compared to the same month last year, according to comScore. But help is on the way. Yahoo is announcing Wednesday that it is adding CBS’s nearly 150 digital radio stations – offering a mix of music, news, sports and talk – to its own 150 stations, which only program music.
CBS will take over ad sales for the two companies’ radio programming. Yahoo and CBS will share ad revenues. They declined to disclose further further financial details. These changes will begin early next year. (CBS will continue to operate its own digital radio stations outside of Yahoo.)
It’s no surprise that CBS would want to join forces with Yahoo, one of the Internet’s largest digital media players. CBS ( CBS , Fortune 500 ), after all, is known primarily for its terrestrial radio offerings and needs to ,show investors that it can be a force on the Internet, too. The deal also makes sense for Yahoo. As recently as October 2007, Yahoo’s LAUNCHcast had 5 million monthly users, according to comScore. A year later, it had 2.8 million. By contrast, CBS Radio’s online audience grew by 4% to 3.9 million digital radio listeners.