In an interesting move, CBS announced yesterday that it will create a separate business unit for its online music assets called The CBS Interactive Music Group. The new unit will be a part of CBS Interactive, and will incorporate all of the Company’s digital music assets including the websites and streams of more than 100 CBS radio stations, various mobile applications, and Last.fm, the CBS owned music discovery site. The idea behind the reorg is to form a single division that will create richer and more immersive experiences for millions of music fans around the world.
The announcements were made by Leslie Moonves, President and Chief Executive Officer, CBS Corporation. Leading the new entity will be David Goodman who has been named President, CBS Interactive Music Group. A veteran of CBS RADIO since 2002, Goodman has served as President, Digital Media and Integrated Marketing for the division since December 2007.
Goodman is well suited to this new position. Over the past year or so, with Goodman at the helm, CBSRadio had lead the industry in terms of audience as well as buzz. They first purchased Last.fm, adding the large online based music discovery site to their portfolio. CBSRadio’s Digital Division then assumed operations of AOL’s streaming radio platform and Yahoo’s Launchcast streaming platform as well. Recently, speaking at the RAIN Summit in Las Vegas, Goodman reported that CBSRadio’s online music platform was second only to YouTube in terms of audience size. “By forming the CBS Interactive Music Group, we are able to create richer content experiences, deeper targeted advertising opportunities driven by experts in local and national sales, increases in overall audience and time spent with our brands, as well as implement common operating systems and shared technology resources to realize cost efficiencies,” commented Goodman.
It’s an excellent move that underscores the need to for broadcasters to view digital music platforms as new media rather than extensions of broadcast radio efforts. CBS has built an impressive digital music platform. Giving Goodman the reins and freedom to take it to the next level makes sense and leaves me wondering what’s next…