"By taking a big cut of its affiliates’ retransmission consent revenue, CBS now believes it can reap as much as $700 million in annual retrans-related revenue," in the next three to five years, according to a report by our good friends at TVNewsCheck.com.
The article, by Mark K. Miller, continues, "With long-term retransmission consent deals in place with cable giants Comcast and Time Warner for its O&Os, CBS is on course to meet its goal of $250 million in annual retrans starting in 2012, and ‘that does not include any of the fees that we are going to get from our affiliates,’ [CBS CEO Leslie] Moonves [said on an earnings conference call on Aug. 1, 2011]. Once that is added in, the number could climb into the ‘$600 million to $700 million range’ in the next three to five years, he said. In other words, the fees from affiliates — a portion of their retrans revenue — would amount to between $350 million and $450 million a year."
Moonves also noted that local TV ad revenues had a slight uptick. Says the article, "The increase in TV revenue came despite ‘a temporary slowdown’ in advertising from Japanese car manufacturers, Moonves said."
The piece continues, "CBS CFO Joseph Ianniello added that domestic auto spending was up by a percentage in the ‘high-teens’ over the second quarter of 2010. ‘Other categories leading the way were financial services, pharmaceutical and telecom.’ In the third quarter, nonpolitical TV stations revenue is pacing up in the low-single digits, he said."