Earnings call

WCBS Gets $1M For Super Bowl Spot

"Pretty incredible,” says CBS CEO Leslie Moonves of the million-dollar local spot in a third-quarter earnings call with analysts. And spots in the network broadcast of the big game have sold for more than $4 million, he says. CBS scatter is "very strong...accelerating as we speak," he says, and retrans fees and reverse comp from affiliates are expected to continue to drive revenue growth in coming years.
By
TVNewsCheck,

CBS Corp. President-CEO Leslie Moonves is bullish on the current quarter after reporting record third quarter results—and says the company is “set up to perform even better in 2013.” One reason for that is the Feb. 3 Super Bowl broadcast, which is not only a hot seller for the CBS Network, but for the O&O stations as well.

In his quarterly conference call with Wall Street analysts, Moonves said spots on the network broadcast have already been sold for “north of $4 million” for 30 seconds. “And, in New York alone, we sold a spot on WCBS for just shy of a million dollars. Just think of that—a million dollars for a local spot in one market. Pretty incredible,” Moonves said.

Story continues after the ad

And while there may be talk at other networks of scatter pricing being a bit soft, the CEO insists that’s not the case at CBS. “Scatter demand remains very strong and is, in fact, now building. Yes, our pacing in network advertising is accelerating as we speak,” Moonves said. Both he and EVP-CFO Joe Ianniello stated that scatter is up mid-teens.

With local TV revenues up 7% in 3Q, Ianniello said a lot of political advertising was placed closer to Election Day than had been expected, so 4Q is pacing up over 20%.

Local Broadcasting segment revenues were up 1% to $661 million in 3Q, with a 5% drop by CBS Radio countering the 7% gain for the O&O TV group, which was driven by political advertising and retransmission fees. Operating income before depreciation and amortization (OIBDA), however, rose 16% to $213 million.

Entertainment segment revenues — including the CBS Television Network, CBS Television Studios, CBS Global Distribution Group, CBS Films, and CBS Interactive — were up 3% to $1.68 billion, driven by higher TV program license fees and higher retransmission revenues. Advertising, however, was down, blamed in part on the Summer Olympics on NBC and preemptions for the national political conventions. OIBDA dropped 5% to $384 million.

Brand Connections

Retransmission fees and reverse comp from affiliates are expected to continue to drive revenue growth in coming years. Moonves noted that CBS recently signed retrans deals with DirecTV, Cablevision and AT&T that, together with a Dish Network deal earlier this year, amount to 40% of the footprint of the O&Os.

“In total our new retrans deals were done on terms significantly higher than anything we’ve done before and will help us get to our stated revenue goals even quicker than we’d hoped,” he said. Moonves noted “heated” and “intense” negotiations, including personal dealings with Cablevision CEO James Dolan, but said he was happy that CBS never had to pull any of its signals.

Another 20% of the footprint is up for renewal in 2013.

“As we recently said, our new target is to reach at least $1 billion in revenue from retrans and reverse comp by 2017 — and we are confident that we will be there ahead of that,” Moonves declared.

Including the upcoming retrans deals and reverse comp from affiliates, Ianniello told analysts that CBS will approach the half-way point to that $1 billion in 2013.

Earnings performance for CBS Corp. in 3Q beat Wall Street expectations, with net earnings of a 3Q record of $391 million, or 60 cents per share. Excluding a special debt extinguishment item the earnings per share worked out to 65 cents, beating the analysts’ consensus by four cents. Revenues were up 2% to $3.42 billion, also a 3Q record.

With the new television season underway, Moonves said “CBS continues to be the most-watched network on television.” He said the season got off to an unusual start, with ratings all over the place — which he attributed to people increasingly time-shifting their viewing with DVRs, streaming and VOD. “Nielsen is doing a good job of finding ways to measure this viewing, but not all of it is captured yet,” he said.

With disruptions for presidential debates and the unusual comp from Ashton Kutcher’s debut on Two and A Half Men last Fall, Moonves insisted that ratings thus far are “atypical.” He also noted that there is a lot of “sampling” of new shows at the beginning of the season.

“We fully expect as the season goes on — and when the season ends — we will once again win in viewers, in 25-to-54 and be right there in 18-to-49 as well,” he said.

Look for CBS Corp. to start cutting deals with streaming companies, such as Netflix and Amazon, which will license past seasons of current CBS Network and Showtime shows. To date CBS has only licensed series that are no longer airing on its networks, but Moonves is now convinced that streaming past seasons of current shows can be beneficial to building ratings for the current season, not to mention bringing in more revenue.

Tags

Comments (0) -

Marketshare Blog Playout Blog

Twitter

TVNewsCheck

Ratings

Overnights, adults 18-49 for September 28, 2016
  • 1.
    2.8/10
  • 2.
    1.9/7
  • 3.
    1.7/6
  • 4.
    1.4/5
  • 5.
    0.6/2
  • 6.
    0.4/1
Source: Nielsen

Reviews

  • Rob Owen

    Easily fall’s best broadcast network comedy pilot, NBC’s The Good Place offers a clever high-concept premise that’s complemented with intelligent, sometimes absurdist humor. Created by Michael Schur, co-creator of NBC’s Parks and Recreation, The Good Place is a highly serialized series that’s essentially set in heaven and stars Kristen Bell and Ted Danson. NBC made five episodes of The Good Place available for review, and the show not only holds up, but also it improves, deepening characters that initially feel one-note and frequently leaving viewers guessing with cliffhanger endings to many of the episodes. The combination of snappy dialogue and winning but flawed characters makes The Good Place a great bet for fans of smart TV comedy.

  • Maureen Ryan

    Pitch has swagger, for good reason. It gets the big things right; the Fox drama about the first female baseball player in the Major Leagues is one of the year’s most assured and exciting debuts. But part of what impresses about the pilot is also the way it confidently strings together so many small but telling details. Ginny (Kylie Bunbury) is the first woman to be called up from the minors to the big leagues, and no show since Friday Night Lights has done a better job of portraying the internal and external pressures that weigh heavily on young athletes asked to do much more than merely succeed on the field. Pitch will likely do a good job of getting viewers to root for it. The hope is that the show won’t be an impressive, short-lived curiosity, but rather a long-term phenomenon.

  • Kevin Fallon

    In a fall TV season that’s already making a splash for championing diverse, distinctive voices in an array of projects that they created, wrote, and starred in, Better Things on FX stands out. The show is created by, written by, and starsPamela Adlon. She plays Sam Fox, the single mother of three daughters modeled after her own reality-show-ready experience raising three girls in Los Angeles following a divorce. Sam is also, like Adlon, a working actress — on shows both raunchy, a la Californication, and animated for children, like her role on Recess. It’s a refreshingly blunt take on single motherhood without sacrificing the warmth of parental love, portraying the dance between selfishness and selflessness that’s at the heart of being a parent — especially one weathering the hormonal fireworks of a household of four women at different ages.

  • David Wiegand

    The fall TV season doesn’t count as much as it used to — we already know that. But no matter how many retreads the broadcast networks throw at viewers in the next few months, this fall will be memorable because of the premiere of Atlanta on Tuesday, Sept. 6, on FX. The half-hour comedy created by and starring Donald Glover (Community), simply and brilliantly recalibrates our expectations of what a TV comedy is and how black lives are portrayed on the medium.

  • Louisa Ada Seltzer

    The second reboot of the 1980s John Candy movie Uncle Buck, bumped by ABC from midseason, has the same tired jokes you'll find on any second-rate sitcom. Too bad, because Mike Epps is appealing and ABC would be wise to keep him around for future shows, but there’s just not enough to this show to suggest it will last past summer. It also airs against NBC’s America’s Got Talent, summer’s No. 1 program on broadcast, which may make it even harder to find an audience.

  • Neil Genzlinger

    Bryan Cranston brings his Tony Award-winning interpretation of President Lyndon B. Johnson to television in an adaptation of the Robert Schenkkan play All the Way, and it’s still quite a sight to behold, just as it was on Broadway in 2014. Nothing beats witnessing this kind of larger-than-life portrayal onstage, of course. But the television version, presented by HBO, offers plenty of rewards, allowing Cranston to work the close-ups and liberating him from the confines of a theater set. Cranston’s performance is a gem — in his hands, this accidental president comes across as an amazing bundle of contradictions, someone who seems at once too vulgar for the job and just right for it.

This advertisement will close automatically in  second(s). You will see this ad no more than once a day. Skip ad