It is pretty obvious to investors that the Internet has accelerated the decline in print newspaper readership. It is also clear that the Internet is contributing to business model changes (and in many cases outright news/editorial budget reductions) at print magazines.

However, that the Internet would also compel changes in broadcast network news -- and in particular, the nightly network newscast -- might be viewed as less obvious. But that, in fact, appears to be the case.

Already dealing with a cable/satellite channel explosion that's decreased their viewership due to audience fragmentation (basically people have more channel choices), network news now must increasingly cope with the reality that adults tuning in have already seen and/or read about on the web the day's top news stories by the time the nightly newscast airs.

CBS (NYSE: CBS) said it has filed a motion to dismiss Dan Rather's $70 million, breach of contract lawsuit, calling Rather's claims "far fetched" and "baseless."

Rather, the former anchor of the CBS Evening News filed suit against CBS, its former parent Viacom (NYSE: VIA), CBS president/CEO Leslie Moonves, CBS and Viacom chairman Sumner Redstone, and one-time CBS News president Andrew Heyward, alleging that he was erroneously blamed for the 2004 "Memogate" scandal about President George W. Bush's Vietnam-era military record.

"There was no such nefarious scheme, and Rather's allegations bear no resemblance to reality," CBS said in its motion, Reuters/Hollywood Reporter reported. "CBS and its executives are not now, and never have been, out to get Dan Rather."

CBS's shares were virtually unchanged Friday, falling 8 cents to $27.14 in mid-day trading.

Media Analysis: Although Rather is unlikely to win his suit, the suit represents another demerit for CBS, a network adrift. Few organizations have done more to tarnish their reputation and trample on their tradition and legacy than CBS, the network of Edward R. Murrow and Eric Sevareid. The tasteless, disrespectful treatment of Rather during his departure stands in stark contrast to the respect, decorum, and professionalism that was the network's norm for generations.

It seems like the pressure has finally chipped away at the cheerful shell of Katie Couric, who has been under fire for months as ratings for CBS Corp.'s (NYSE: CBS) CBS evening news drift lower. Couric took over the lead anchor spot in early September, and ratings have steadily declined, putting the Eye Network's nightly news in a distant third place.

Now, apparently even Katie herself finds herself occasionally wishing she hadn't jumped from the cushy ship of NBC's Today show to the evening anchor gig. According to an AP story, she recently told New York magazine that "I have days when I'm like 'Oh my God, what did I do?'" but affirmed that "they [these doubtful days] don't happen that often."

Trying to speculate on the broadcast's plunging ratings, Ms. Couric opined that "people are very unforgiving and very resistant to change ... the biggest mistake we made is we tried new things." Further fueling the rumor mills that suspect Couric will be booted from the anchor chair before the end of her five-year contract, she said she looks forward to working more with the 60 Minutes crew and said that "If it turns out [the anchor job] wasn't a perfect fit ... I'll do something else that's really exciting and fulfilling for me."

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

Evidently, "perky" and "likable" aren't what the nation's network news watchers want with their nightly dose of headlines. This is a tough (and expensive) lesson being learned by the folks at CBS Corp. (NYSE: CBS).

Last week, the CBS Evening News, which has been anchored by Katie Couric since early September, attracted its lowest ratings since 1987. During the first week of May, which happens to mark the beginning of the television industry's spring "sweeps" period, an average of 6.05 million viewers tuned in to watch the former Today host deliver the news. Couric is currently the highest-paid news anchor, at $15 million per year.

ABC's World News offering, meanwhile, averaged 8.1 million viewers, while NBC's Nightly News saw 7.5 million viewers tune in. Charles Gibson mans the desk at ABC -- a division of Walt Disney (NYSE: DIS) -- while Brian Williams is the weeknight anchor for General Electric's (NYSE: GE) NBC.

Thank goodness for the CSI franchise and other programs that keep CBS moving at an enviable clip. The network still won the week, earning an average 11.2 million viewers in prime time to top its four competitors.

How do you solve a problem like Katie? According to recent theories from "CBS sources," she may gracefully bow out of her current role following the 2008 Presidential election and take on another position at the eye network. But even that is well over a year away, and there is the potential for plenty of sub-par ratings between now and next November.

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