CBS invests $7 million in Electric Sheep

Electric Sheep, a company that develops 3-D properties in virtual worlds like Second Life, received CBS’s support in its recent round of financing. Apparently the virtual world adventures of MTV Networks (split up or not, I’m sure they all still email each other) have persuaded the company to pursue this venue more aggressively.

According to CBS Interactive President Quincy Smith:

“We believe that all these virtual worlds represent next generation communications platforms”

No surprises here. What does seem new is the public announcement of spending 7 million bucks. Sure, Electric Sheep holds a formidable portfolio of the *sigh* usual Fortune 500 suspects (Time Warner; NBC; Viacom). But I think this bunch of money is spend on the coat tails of CBS’s recent quarterly (4Q05) profit announcement. In the NYTimes today it reads:

“Revenue rose 2 percent, to $3.88 billion from $3.79 billion a year ago…”

This is a big deal since the split-up of Viacom and the massive write-offs last year. Fourth quarter in 2005 was the first one after the split, so posting a profit is great news. Anyway, the $7 million announcement should be read in context:

“The chief executive, Leslie Moonves, told analysts that he would continue to make small investments in new media, but that he believed in the long-term growth of the company’s core television, radio, and outdoor advertising units.” (NY Times, 02/28/07, C4)

Seems like all these virtual worlds will eventually amount to some type of new broadcasting model, only with pictures and avatars. Like a big mall with payola.