Analyst: CBS Expecting $1 Billion Windfall

Sep 12, 2012  •  Post A Comment

CBS is expecting a $1 billion windfall, writes Sanford C. Bernstein analyst Todd Juenger, according to our friend Joe Flint at the Los Angeles Times’ Company Town blog.

The windfall consists of retrans monies CBS should be getting in 2016.

Says the article, "According to Juenger, that figure is based on a subscription fee of $1.22 per-month, per-subscriber from multichannel video program distributors (MVPDs) for the stations the network owns, including KCBS-TV Los Angeles. It also includes a 50% cut of whatever their affiliates get from MVPDs, which Juenger thinks will be the same price CBS gets for its stations."

The billion-dollar number is expected to be collected by CBS a year earlier than previously thought, Flint notes.

While both Fox and ABC are on similar retrans tracks, NBC is not, the story says. That’s because, according to the article, "NBC’s parent is Comcast, a cable operator with more than 20 million subscribers. NBC, [Juenger] wrote, ‘seems mired down in the inter-company complications of Comcast being NBC’s biggest distributor, and the contradictory motivations and unintended consequences that causes.’"

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