Wednesday, December 11, 2013

CBS's Moonves Talks 'Revenue Splits'

Les Moonves (CBS photo)
Leslie Moonves said CBS Films has experienced a "breakthrough" with Last Vegas, a $28 million film that has so far earned $80 million worldwide.

Still, according to The Hollywood Reporter, "I have to admit, I like the television business better than the motion picture business as an economic proposition."

Moonves was speaking at the 41st annual UBS Global Media and Communications Conference in New York on Tuesday.

The CEO of CBS Corp. also expressed confidence that his company would win its legal battle with Aereo, a service he said more people talk about than actually use. "I'm tired of talking about Aereo," he said.

Moonves told Wall Street analysts that when advertising revenue for CBS comes down from 70 percent of the total now to 50 percent next year, it won't signal a "crisis," but in fact it will be a good development.
The company's revenue split will change dramatically because of the impending spin-off of its outdoor unit, so a 50-50 split of revenue between advertising on one hand and retransmission fees and other sources on the other hand "is what we like," he said.

The CEO also reiterated that, given DVR programming, in the future CBS expects it will get paid for advertising viewed as many as 30 days after it first airs, up from three and seven days, which is more normative today. About 80 percent of the advertising CBS shows is not time sensitive, he said. "We may not get paid as much, but you're selling Kraft Macaroni and Cheese. What's the difference if you watch now or 22 days from now?"

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