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CBS Shows to Feature in Hulu's Upcoming Live TV Service

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CBS Corporation have reached an agreement with Hulu that will enable it to live-stream the U.S.’s most-watched broadcast network, CBS Sports Network and POP, an entertainment channel. Moreover, the deal includes the option of adding more networks in the future.

Per agreement, all networks in the deal will not only be available to live stream but will also be accessible on-demand, through Hulu's new multichannel. The company will launch the new multichannel services in the coming months.

After this deal, Hulu subscribers can enjoy popular programming of CBS like Big Bang Theory, Big Brother, NCIS, 60 Minutes and Blue Bloods, both live and on-demand. Per sources, CBS will charge monthly subscription fees of more than $3 per month. However, the subscription fee may increase above $4 with increase in subscription. Notably, the deal will boost to its subscription-based revenues considering the fact that Hulu is one of the biggest names in online video streaming.

This deal follows Hulu’s earlier live streaming agreement with CBS competitors The Walt Disney Company (DIS - Free Report) , Twenty-First Century Fox, Inc. (FOXA - Free Report) and Time Warner Inc. .

CBS shares, which have outperformed the Zacks categorized   Broadcasting-Radio/TV industry in the past one year, further gained 2.1% yesterday, following the announcement. The company’s shares have surged 42.5% in the past one year compared with the Zacks categorized industry’s gain of only 4%.

CBS focuses on increasing its subscription-based revenues, which is likely to drive long-term growth. Additionally, the company has an extensive library of premium content that it monetizes over multiple platforms. Evident from its launch of over-the-top (OTT) services, namely CBS All Access and CBSN, alongside launching an independent streaming service for its premier channel, Showtime. The company also boasts several new prime time shows as well as reruns of hit series along with NFL on Thursdays and Sundays.

CBS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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