Update: Fox4 in Dallas (Kills) Content Deal with Pegasus

Update: Fox Corporate has actually killed the deal. But I’m leaving the post up because it is still interesting as a model. See Mike Orren’s version of why the deal was killed here.

Fox4 in Dallas has entered into a content sharing relationship with Pegasus News, a social network site. The deal doesn’t call for any revenue sharing, but it brings more traffic and credibility to both sites, says Pegasus News head Mike Orren. It also gives Pegasus some on-air time.

“They’re going to run us occasionally on their shows with some hyperlocal stuff. When we have a good story, they’ll run it. And they’re giving us carte blanche to run their video on Pegasus. We are a hacker with permission.” That side of the relationship can only help Fox, which sells pre-roll advertising on some of the video and can gain from the additional traffic.

“They’re also populating our national and international news box on the home page –replacing Topix — and we’ll replace AccuWeather with them as soon as we figure out the logistics,” says Orren. Pegasus and Fox4 also have some tentative plans to team up on some election coverage.

Orren says he has actually been in talks with several Dallas area TV stations, but others wanted exclusivity, which was a deal killer. Fox itself has asked Pegasusor to crack down on its irreverent mocking of Fox’s news programming. But the latter issue is becoming a non-issue. Orren says that his site is moving away from some of the shoot from the hip stuff anyway. “We want to focus more on neighborhood, hyperlocal stuff. No more making fun of the weatherman!”

Fox, of course, has a reputation for having a conservative political slant. And there would seem to be some danger in alienating some of Pegasus’ users. But Orren says it should be a non-factor. “People look at the local affiliate apolitically,” he says.