It's all over the news. Media conglomerate Disney (NYSE: DIS) and Google's (NASDAQ: GOOG) YouTube have entered into a deal for the former to supply content to the latter. Not for free, of course. There will be an ad-revenue-sharing model in place. The transaction calls for short-form content at first. This will be derived from ABC and ESPN properties. I assume that, if the short-form stuff works, then long-form stuff will follow pretty soon.

According to Julia Boorstin at CNBC, Disney will have full authority over the ad sales. That's good for shareholders of Disney. But YouTube wins a lot here, too. Google paid quite a bit of money to acquire the platform, and so far, monetization of the user-generated model has not been going smoothly.

YouTube needs to sign deals like these to legitimize its presence. It doesn't want to be known simply as the Cyberland of Copyright Infringement, a wicked, evil digital kingdom where content is stolen, used, and abused. That's how Viacom (NYSE: VIA) sees the site. It has engaged litigation against the company.

CBS Corp. (NYSE: CBS) is in need of a solid new hit. While CBS has consistently been America's "most-watched network" for several years, the trend may be in danger. Perennial ratings powerhouses such as the CSI franchise, Two and a Half Men and Survivor are getting a little long in the tooth and may only have a few years left before fickle viewers tire of them.

Meanwhile, fall season has started off slowly for the venerable network, as two of its returning drams ... the two-year-old James Woods vehicle Shark and the procedural drama Cold Case -- beginning its fifth season -- saw sagging ratings. At 10:00 p.m. Eastern, Shark attracted an all-time low of 11.5 million viewers, roughly 6 million less than Without a Trace drew when it premiered in the same time slot last year.

12.3 million viewers tuned in to Cold Case, airing at 9:00 p.m., down from the fourth-season premiere, which drew 17.6 million households. Next week, the competition builds as Walt Disney's (NYSE: DIS) ABC Network premieres Desperate Housewives and Brothers and Sisters.

For the night, CBS took second place, behind General Electric's (NYSE: GE) NBC Network, which won the night easily with Sunday Night Football.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

It is already that time of year again, when networks begin to align their fall schedules. Fans of cult favorites like Veronica Mars worry about their shows teetering on the bubble, writers and stars associated with top-20 shows may become a little bit greedy, and the nation wonders who, exactly, is still watching The Bachelor.

Late Wednesday, ABC, a division of Walt Disney Co. (NYSE:DIS), announced 14 early confirmations for the 2007-2008 television season. Coming back for a second season are three breakout hits: Brothers & Sisters, Men in Trees, and Ugly Betty. Also on the list are Boston Legal, Desperate Housewives, Dancing With the Stars, Extreme Makeover: Home Edition, Grey's Anatomy, Jimmy Kimmel Live, Lost and, in fact, The Bachelor. This group joins three programs the network already committed to for the fall season: Supernanny, Wife Swap, and America's Funniest Home Videos (that's still on? News to me.)

Among the network's shows still awaiting a verdict are What About Brian, According to Jim, and George Lopez.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Companies start to believe their own PR hype. Investors push a stock past logical limits. A company seems about to break down or break out. These are just a few things that can signal a stock with attitude. And... That attitude can be good or bad for the stock price since attitude always catches up with reality. At least on Wall Street that is.

Disney (NYSE:DIS) was up $0.60 (+1.70%) Thursday to $35.85 on news about a robot named Wall-E starting to appear in promotions for one of their computer animated movies scheduled for release in June 2008 . Or could it have been the announcement that Moody's may raise the company's debt rating because of of improving profits from operations? I'll bet it was the second one that got investors excited enough to give this stock a hefty boost in trading yesterday. Disney already has the highest possible S&P 5 STAR rating, and out of the 17 other analysts who cover the stock 4 give it a strong buy, 3 a moderate buy, 9 a hold, and one lone party pooper gives it a sell.

What other company has an end-to-end entertainment production, promotion, and delivery system like Disney? None that I know. Who else can promote that June 2008 animated feature release for months on several cable TV channels and on the ABC Network during Desperate Housewives and Lost? Then, after you've seen the movie, catch the ride at one of the Disney theme parks.

Other entertainment companies like General Electric (NYSE:GE), News Corp (NYSE:NWS), Tribune (NYSE: TRB), and even Time-Warner (NYSE:TWX) just can't put together the kind of grand-scale media leverage that Disney seems to have down to a paint-by-numbers science. If you're looking for a bullish hedged play on Disney, consider an April covered call around the 35 level. You might even catch a bit of this stock's small dividend and wait until you see what kind of perks they have for shareholders.

Vic Schiller is an analyst with attitude at Investors Observer.

DISCLOSURE NOTE: Mr. Schiller owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.