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CNET: A Good URL Does Not a Business Make

by: Ashkan Karbasfrooshan posted on: May 16, 2008 | about stocks: CBS / CNET

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By virtue of being one of the oldest Web companies out there, CNET (CNET) has a lot of really neat-sounding URLs on its balance sheet.

The problem, however, is that a good URL does not a business make.

While CNET has launched TV.com, it is not a must-see-destination. It also owns Radio.com, but that too does not cause waves. Sorry for the pun.

In fact, historically generic names are not favored at all:

Search.com (incidentally, owned by CNET, too) is no Google (GOOG).
News.com (incidentally, also owned by CNET) is no CNN.com

Even things like Cars.com, Travel.com, etc. have competing business such as Autobytel.com and Expedia, for example.

Ultimately, there can be a hundred ways to go about developing (if at all) Radio.com, News.com and TV.com. After all, CBS (CBS) is:

The #2 in Radio (after Clear Channel).
The #1 in TV (ahead of ABC, NBC and FOX).

However, these URLs are double-edged swords: creating any business and brand around a generic name is a bad idea legally. It is very hard to trademark - and defend - something generic like Mojo, but WatchMojo.com? That is doable.

Ultimately, managing all of the assets within the CNET empire is going to an enormous challenge, but one that CBS CEO Les Moonves is sure to welcome. After all, CNET has its denigrators, particularly in Web 2.0 gaga San Francisco… but much like 2005’s shopping spree catapulted Rupert Murdoch into the webosphere, Quincy Smith has started to digitize CBS to some extent.

Armed with CBS’ billions, admittedly that is the easy part.

When News Corp. (NWS) bought IGN Entertainment, the idea was that between IGN’s content businesses (IGN.com, RottenTomatoes.com, etc.) and technology (digital download business, in-game advertising), the sum of the parts would be moving the needle. But in the end, IGN has been a relative disappointment… and a flop next to News Corp.’s other big purchase: MySpace.

All to say, while CNET brings alot of good stuff to CBS, sometimes trying to shove too much in a bag creates a mess.

All in all, it will be interesting seeing how this plays out… As they say: talk is cheap, execution is all that matters (not sure who says that second part, but you know what I mean).