CBS CEO: Online Video Subscription Seen Boosting Revenue
06 Agosto 2009 - 5:09PM
Noticias Dow Jones
Les Moonves, chief executive of CBS Corp. (CBS), said Thursday
that the company's participation in the cable industry's push
towards an online video subscription model will boost its
revenue.
CBS recently struck a deal with Comcast Corp. (CMCSK, CMCSA) to
participate in its test of an online video subscription offering,
which allows video customers to watch pay-TV programming on the Web
by confirming their subscription through an online authentication
process.
The test comes as pay-TV operators, like cable and satellite
providers, and cable TV networks are moving to preserve their
subscription business model amid the rise of online video.
Broadcasters, like CBS, are more reliant on ad revenue - a
shortcoming in their business model that they're trying to remedy
by negotiating for higher carriage fees, or retransmission fees,
from TV service providers. The move to online video subscription
brings another opportunity for broadcast networks to share more in
subscription fees.
"The good news is that new initiatives like authentication
appear to have us on a track towards closer economic parity online
and on air," said Moonves. "Whether you call it authentication,
reverse comp or retransmission fees our content is increasingly
benefitting from multiple revenue streams."
-By Nat Worden, Dow Jones Newswires; 212-416-2472;
nat.worden@dowjones.com