18.1 Mission and Purpose of .CBS
The intended mission and purpose of the .CBS gTLD is to serve as a trusted, virtual platform to offer CBS Corporation and its qualified subsidiaries’ and affiliates’ content to global audiences, while also deepening and broadening relationships with those audiences. CBS Corporation has created a wholly owned subsidiary, CBS Domains Inc. (“CBS Domains”), as the entity to file this application and bring the .CBS gTLD to market.
CBS Corporation intends that as its online strategy evolves, so will its strategy for use of the .CBS gTLD. CBS Corporation is a leading mass media company with operations that include the following segments:
-ENTERTAINMENT: The Entertainment segment is composed of the CBS® Television Network; CBS Television Studios; CBS Studios International; CBS Television Distribution; CBS Films®; and CBS Interactive. Its premium television programs include the three CSI series, NCIS, NCIS: Los Angeles, The Good Wife, Hawaii 5-0, along with CBS Evening News and the award-winning 60 Minutes. CBS Interactive operates one of the leading global publishers of premium content on the Internet. CBS Interactive’s worldwide content reached approximately 246 million unique monthly visitors, during December 2011, according to Score Media Metrix, December 2011. It operates well-known websites including: CBS.com, CBSNews.com, CBSSports.com, CNet.com, and GameSpot.com. In particular, CNet.com is one of the preeminent websites for technology and consumer electronics information, and features news, reviews, downloads, and instructional and entertaining video and audio shows about technology.
-CABLE NETWORKS: The Cable Networks segment is composed of Showtime® Networks, the Companyʹs premium subscription program services; CBS Sports Network®, the Companyʹs cable network devoted to college athletics; and Smithsonian Networks™, a venture between Showtime Networks and the Smithsonian Institution, which operates Smithsonian Channel™, a basic cable program service.
-PUBLISHING: The Publishing segment is composed of Simon & Schuster, which publishes and distributes consumer books under imprints such as Simon & Schuster®, Pocket Books®, Scribner®, and FreePress™. Its award-winning and best-selling books include Steve Jobs by Walter Issacson; A Stolen Life, by Jaycee Dugard; and 11⁄22⁄63 by Stephen King.
-LOCAL BROADCASTING: The Local Broadcasting segment is composed of CBS Television Stations, the companyʹs 29 owned broadcast television stations; and CBS Radio®, through which the Company owns and operates 130 radio stations in 28 United States markets, including iconic radio stations such as WCBS, KCBS, and KROQ.
-OUTDOOR: The Outdoor segment displays advertising on media, including billboards, transit shelters, buses, rail systems (in-car, station platforms, and terminals), mall kiosks, retail stores, and stadium signage principally through CBS Outdoor®.
CBS Domains intends to initially limit registration and use of domain names within the .CBS gTLD to CBS Corporation and its qualified subsidiaries and affiliates. This initial limited use will allow CBS Domains to establish its operations and achieve full sustainability. This limited distribution coupled with the other requirements set forth in Specification 9 of the template Registry Agreement is intended to exempt CBS Domains from its annual Code of Conduct Compliance requirements.
After Stage 3 (see below), CBS Corporation will evaluate whether opportunities exist to carry out the business strategy for the gTLD through expansion that continues the sustainable operations of the registry through fee-based registrations to parties other than CBS Corporation and its qualified subsidiaries and affiliates.
CBS Domains currently plans a four-stage rollout for the .CBS gTLD:
1. Stage 1
The initial stage of implementation of the gTLD will involve CBS Corporation registering a limited number of .CBS second-level domain names. This initial use will provide CBS Corporation’s IT and security personnel the time to run a number of tests to ensure seamless and secure access using the .CBS gTLD domain names, interoperability with various software and Web-based applications, and unbroken and secure use of all names. This initial allocation will also allow the appropriate CBS Domains staff to coordinate with the internal and external staff responsible for the delegation and setup phases of the .CBS gTLD to ensure a proper transition from delegation to full operation.
2. Stage 2
Once all testing has been successfully completed, CBS Domains will likely begin allocating domain names in the .CBS gTLD for more widespread internal corporate use at CBS Corporation. During this same time period, CBS Corporation will begin evaluating strategies to potentially migrate traffic to CBS Domains’ new gTLDs, .CBS and .SHOWTIME.
It is in Stage 2 that CBS Corporation will evaluate expanding the operations of the .CBS gTLD to potentially permit registration by other registrants, such as select licensees or strategic partners. Should an assessment of its expansion strategy lead to a decision to extend registration rights to other parties, this expansion is currently planned to take place in Stage 3. However, any expansion would be conditioned upon a review of Specification 9 (Registry Code of Conduct) set forth in the template Registry Agreement to ensure compliance with CBS Domains’ business model.
3. Stage 3
Depending on the analysis of the evaluations undertaken in Stage 2, CBS Corporation may begin to implement the migration of Internet traffic toward the new CBS Domains gTLDs, .CBS and .SHOWTIME. It is in this stage that CBS Domains also may implement CBS Corporation’s decision to extend registration rights to licensees or strategic parties, depending upon compliance with Specification 9, as noted above. The dates of any such expansion are subject to change depending upon business, strategic, and industry factors at the time.
After consideration of the following factors: analysis of CBS Corporation’s existing domain name portfolio; internal analysis of marketing initiatives; and the fact that CBS Corporation will have full control over the number of registrations in the .CBS gTLD namespace, CBS Domains is confident that the number of domain name registrations will be less than 10,000 in the first five years of operation.
4. Stage 4
Based on their experience with any expansion implemented in Stage 3, CBS Domains and CBS Corporation will assess whether their business plan and expansion strategy should be augmented by extending registration rights to a broader class of licensees. It is anticipated by CBS Corporation that changes to the domain name industry, and particularly the impact of .BRAND gTLDs, will take at least five years to be realized and assessed. Any decision to expand the gTLDs beyond corporate, qualified subsidiary⁄affiliate, and licensee⁄partner use will take into account this experience as well as the technical analysis of potential expansion.
CBS Corporation intends to use the .CBS gTLD in ways that are consistent with its business as identified in its annual report and investor filings, see http:⁄⁄investors.cbscorporation.com.
Utilizing current projections based upon CBS Corporation’s existing businesses, business plans, current domain name portfolio, and other strategic factors, CBS Corporation estimates second-level domain name registrations to be in line with the projections set forth in the financial template provided in response to Question 46 of this application.
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