On a day when traditional media stocks got hammered, CBS Corp’s CEO Leslie Moonves remains bullish.
Take, for example broadcasting: “At Local Broadcasting, the [CBS] TV and radio stations saw operating income fall 7.9% to $198 million with revenues down 1.7% to $654 [million],” reports Deadline’s David Lieberman. He adds, “Moonves told analysts that he isn’t worried: ‘The coming election cycle will trump anything we’ve seen before’ with total TV ad spending expected to exceed $4.4 billion. ‘Our TV stations are terrifically positioned to capitalize on this.’”
Furthermore, reports the Wall St. Journal, Moonves “said advertisers are paying as much as a record $5 million for a 30-second spot in Super Bowl 50, which CBS will air in February. Last season, the most an advertiser paid for a commercial during NBC’s coverage of the game was $4.5 million.”
The WSJ adds: “’The broadcast business is in better shape than basic cable,’ Mr. Moonves said, adding that CBS has its own online offering in CBS All Access and that its popular programming will make it must-have for any so-called skinny bundles of channels sold by pay-TV distributors.
“Mr. Moonves also noted that next year CBS will surpass $1 billion in fees from distributors and its own affiliates for the network’s content. That is a year earlier than CBS had forecast. ‘He who has the most viewers gets paid the most money,’ Mr. Moonves said.”