Parsons will be a part-time adviser says the New York Times and will keep his current job as Citigroup (C) chairman as well. Providence’s media bets include MGM and Univision, which haven’t worked out, and Hulu, which has.

Providence and Parsons have worked together at least once before: In 2004, Parsons sold Warner Music Group (WMG) to a consortium that included Providence, Thomas H. Lee Partners and Edgar Bronfman Jr.

Perhaps Providence will tap Parsons’s knowledge of his former employer for another deal: Time Warner executives keep murmuring about the need for magazine publisher Time Inc. to shed some of the 115 titles it operates.

CBS (CBS) will join previously announced partners Time Warner (TWX), which is offering up programming from its Turner channels and HBO; Liberty Media’s Starz; and smaller players like Scripps, Rainbow and A&E. The twist is that CBS is the only broadcaster to sign up for the trial.

I noted that this was in the works last month, and it makes plenty of sense: For one thing, CBS would like to tie up with Comcast (CMCSA) as a way to extract “retransmission fees” from the cable company for the rights to carry its programming, which it currently doesn’t get paid for. The broadcaster also needs a big ally, as its broadcast competitors at GE’s (GE) NBC, News Corp.’s (NWS) Fox and Disney’s (DIS) ABC have already tied up with Hulu.

Comcast’s trial program, which is supposed to start this month and which parallels plans being promoted throughout the cable industry, is in many ways a response to Hulu, which has unnerved the pay TV business. The industry is worried about the specter of “cable cutters” who dump their cable TV subscriptions and watch free Web TV instead. So it’s trying to convince subscribers that if they keep paying up, they’ll get to see whatever they want online, legally.

CBS, meanwhile, passed on the chance to join with Hulu early on, and has since been complaining that the joint venture’s business terms undermine broadcasters’ chances of making real money on the Web.

CBS and Comcast aren’t talking about what the economics of this tie-up look like, but given that it’s a trial, it’s likely there isn’t much to talk about yet. But ultimately, CBS imagines a world where cable companies pay it for the right to put its shows on the Web and where it can charge Internet advertisers the same rates it gets for on-air TV.

That’s a long way off, but this is a start. “This is about extending the economics of the television market to an already independent, healthy online market,” says CBS digital boss Quincy Smith.

UPDATE:  Comcast has a few more programmers on board. In addition to Scripps, A&E and Rainbow, which I’ve written about before, but which have not been formally announced, Comcast is bringing in BBC and MGM Impact, a VOD channel it runs with MGM.

Here’s the release.

CBS TO PARTICIPATE IN COMCAST’S ON DEMAND ONLINE 
NATIONWIDE TRIAL

As the First Broadcaster To Participate, CBS Agrees to Test Standards and Principles for
“TV Everywhere” Model

NEW YORK and PHILADELPHIA, July 14, 2009–CBS Corporation (NYSE:  CBS.A) and Comcast Corporation (Nasdaq: CMCSA, CMCSK) announced today that CBS is the first broadcast network to participate in Comcast’s technical trial of On Demand Online. The new service will significantly expand the number of top-rated TV shows available online and across platforms at no additional charge to Comcast’s cable customers while delivering increased advertising value to content owners. During the course of the trial, CBS plans to test various types of current and library content.

“CBS and Comcast share the same vision of giving consumers more–more content, in more places,” said Matt Bond, Executive Vice President of Content Acquisition, Comcast Cable. “On Demand Online is a major step in extending consumers’ television experiences online, and ultimately across platforms by giving any television network, including top brands like CBS, the ability to make their content available on the Web.”

“CBS is very supportive of initiatives that help extend our content to new platforms in such a way that we gain new audiences and additional value for our advertisers,” said Quincy Smith, Chief Executive Officer, CBS Interactive. “Comcast is already a trusted platform to distribute CBS content on air as well as on demand; expanding this relationship online is a logical step. In addition, CBS’s strategy has always been about open, non-exclusive distribution of our content in a consumer friendly way, which is a core tenant of TV Everywhere and On Demand Online.”

CBS’s participation in Comcast’s technical trial comes on the heels of last month’s joint announcement between Time Warner Inc. and Comcast which introduced a set of principles called “TV Everywhere.” Developed by the two companies, the principles are designed to serve as a framework to facilitate deployment of online television content in a way that is consumer friendly and pro-competitive.

Comcast will begin its technical trial of On Demand Online with approximately 5,000 customers from across the U.S. in the coming weeks–the first national trial of its kind. A major focus of the trial is to test Comcast’s new “authentication” technology, which will allow Comcast customers to receive the same content online for free that they subscribe to on TV. The service will utilize a simple log-on system for streaming content and, in the future, will allow for download content to go. The On Demand Online service will roll-out in phases, adding new features, functionality and content over time to provide consumers with a new way to watch television.

On Demand Online is part of Comcast’s Project Infinity, the company’s long-term vision to give customers an ever growing amount of video content on multiple platforms, whenever they want.

What’s not included: almost any first-run TV show or newly released movie. That’s the content that’s made Hulu successful and what’s also driven traffic to offerings from CBS and Disney’s ABC.

You can’t accuse the Google guys of overselling this: In a press conference today, they described it as a “first step, a baby step.”

Google (GOOG) did say that it had added new content partners, but it was maddeningly imprecise about which ones it had signed up and what content they were providing. The company did confirm, however, that Sony (SNE), via its Crackle video site, would be providing content.

Google also said that it now has “thousands” of television shows and “hundreds” of movies; prior to this, the company said its catalog consisted of just “hundreds” of TV shows and “dozens” of movies.

But this is still primarily “long tail” stuff. The only first-run CBS (CBS) show YouTube offers, for instance, is “Harper’s Island,” which YouTube already offered. And if you recognize any of the following new YouTube partners, then it means you’re a show business insider: Endemol, Anime Network, Scott Entertainment, Entertainment Rights, Shout Factory, Telenext Media, Documentary Channel, First Look Studios, IndieFlix, Saavn, Snag Films, Venevision and Bandai.

Still, YouTube needs as much licensed content it can get its hands on in order to lure more advertisers to the site, which has underperformed to date.

Advertisers who do want to sign up will have a new option: a “Google TV ads” product that inserts ads into the shows, à la Google’s Adsense for Web publishers. Google said it will use “pre-roll,” “mid-roll” and “post-roll” ads–i.e., video ads that run before, during and after the movie or TV show–as well as the overlay ads that cover the bottom part of the screen, briefly, with a translucent pitch.

Google will also allow video providers to sell their own content, and in some cases, will allow them to use their own video player, a first for the company. Sony, for instance, will use its Crackle video player for its content.

Reports that YouTube had a deal with Sony to show full-length movies and TV shows on the site surfaced earlier this month. Last month, reports also indicated that YouTube was talking to Disney (DIS) about getting movies and ABC TV shows on the site, but since then I’ve been told that Hulu, the joint venture between News Corp.’s (NWS) Fox and GE’s (GE) NBC, has all but locked up ABC shows for an exclusive deal.

Here are two releases, one describing the new section and the other describing the new ad product. Screenshots follow.

Watch Shows and Movies on YouTube: Today we’re excited to announce a new destination for television shows and an improved landing page for movies on YouTube, where partners like Crackle, CBS, MGM, Lionsgate, Starz, the BBC and many others have made thousands of television episodes and hundreds of movies available for you to watch, comment on, favorite and share. This addition is one of many efforts underway to ensure that we’re offering you all the different kinds of video you want to see, from bedroom vlogs and citizen journalism reports to music videos and full-length films and TV shows.

To help you navigate through all this great content, we’re introducing two new tabs to the YouTube masthead: the “Shows” tab allows you to browse shows by genre, network, title and popularity, while the “Subscriptions” tab will grant logged-in users one-click access to fresh content from their favorite creators.

Another change you’ll notice today is the wider roll-out of in-stream ads, which we’ve been testing since October, to support our shows and movies content — not unlike what you might see when viewing this type of content on TV.

While shows and movies are currently limited to users in the US, we look forward to expanding to other regions as soon as possible.

We hope you enjoy watching shows and movies on YouTube. There’s still work to be done and we look forward to iterating with you, whether that’s rolling out new engagement features, expanding our content offering or improving your viewing experience. And, as with everything we do, we’ll track your usage and feedback to preserve your fundamental YouTube experience while we take these steps to enhance it.

Yours,
Sara Pollack
Entertainment Marketing Manager
The YouTube Team

Reach TV viewers through more than one screen
By Geoff Smith, Product Manager for Google TV Ads

Google TV Ads makes it easy for advertisers of all sizes to reach customers watching television. These days, many full-length television programs are also available for Internet users to watch online. These programs may appear in various places, including the websites of the networks which originally broadcast them and on other sites that specialize in video content. What if an advertiser wants to reach the audience of a particular program, no matter whether they’re watching on a television or online?

We’re excited to announce the beta launch of Google TV Ads Online. This is a new feature of Google TV Ads that lets advertisers place commercials into the ad breaks of TV programs watched online. It works in the same way as Google TV Ads: advertisers can target specific programs and select their cost-per-thousand (CPM) bid. Based on their targets, budget and bid, ads are inserted in the same program breaks that were designed for advertising when the programs first aired. (Ads may also be shown “pre-roll”, before the program begins, or after the online presentation of the program “post-roll.”) And like Google TV ads, we provide advertisers with measurement tools that give greater insight into how their ads perform with users.

One website where viewers are consuming more and more full-length content online is YouTube. Today, YouTube launched a new destination for full-length shows and movies, and advertisers will be able to use Google TV Ads Online to reach the millions of people who come to YouTube to watch this content. That’s not only good for advertisers, but content partners who are looking to generate revenue from their videos online. Ads will also be shown on other websites that carry full-length video programs.

Google TV Ads Online is still in beta and available to advertisers by invitation only. If you’re interested in learning more about it or would like to be considered for the program, please contact Erin Bouchier at erinb@google.com.

Here’s what the new YouTube video player looks like in full-screen mode (click to enlarge):

And here’s a “landing page” for YouTube TV shows:

New tack, which YouTube has slowly been adopting: Run longer stuff that will theoretically appeal to advertisers. Like, say, indie movies. Or shows from CBS (CBS). And now, a handful of movies from the MGM library, starring the likes of Chuck Norris (“Bulletproof Monk”) and Yul Brynner (“The Magnificent Seven”).

So far, YouTube’s catalog of studio-sanctioned movies and TV shows pales in comparison to those offered at Hulu. But that’s going to change sooner than later: At some point in the not-so-distant future, all of the Web video sites will have the same access to the same catalogs. Video industry executives predict that even NBC and Fox, the JV partners in Hulu, will end up distributing their stuff widely once the video site’s exclusive ends next year.

Trickier question: Just because these sites have long-form video, will there be enough eyeballs, and advertising dollars, to make a real business out of showing them?

Hulu, for instance, is supposed to be the gold standard for Hollywood-approved Web sites. But as Rafat Ali at PaidContent points out, it’s unclear exactly how much money Hulu is actually making.

The site’s boosters never fail to point out that 100 percent of its inventory is advertiser-friendly (as opposed to a small fraction at YouTube). But that doesn’t mean that 100 percent of views have been sold to advertisers, despite frequent reference to inventory being “sold out”: Watch Hulu for any length of time and you’ll quickly start seeing freebie public service ads–the kind you don’t see on TV until the middle of the night.

Something doesn’t add up right now. When will it?