CBS Ad Prices Up, Total Revs Dip Slightly

CSI Miami

CBS Corp. said advertising this year is up in both volume and pricing at its broadcast network and group of local stations. Still, that includes ad dollars from the high-rated Super Bowl, and falls in comparison to a difficult period in early 2009.

The company said scatter pricing is up 30% over upfront levels, benefiting the CBS network. Ad dollars at the 27 TV stations -- which include 14 that carry CBS -- have increased more than 15%, the company said.

"We're now being helped by a marketplace that is steadily improving," CEO Leslie Moonves said on an earnings call.

The notable growth at the CBS network appears to have started in the final quarter of 2009, when advertising was up 8%. Revenues overall at the CBS entertainment division -- which also includes interactive operations -- rose 4% to $1.8 billion in the October-December period.

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Total CBS Corp. revenues were $3.5 billion, down .8% for the final quarter of 2009. Radio and outdoor operations continued to struggle, helping to drag down total company ad dollars by a 1.5% to $2.4 billion. Advertising accounted for 67% of all CBS Corp. revenues.

TV station total revenues fell 3% to $358 million in the fourth quarter (however, they were up 11% when political dollars were stripped out). But radio was down 12% to $322 million, while outdoor dropped 8% to $484 million.

Overall, company profit was $59 million, down from $136 million a year ago.

Perhaps in reference to the impending return of Jay Leno to late night on NBC, Moonves said CBS is well-positioned with its David Letterman and Craig Ferguson-fronted shows. Moonves also said that NBC's impending new 10 p.m. lineup "doesn't really scare us very much." CBS has strong performers in the time slot with "CSI: Miami" and "The Mentalist."

Moonves also indicated that a celebrity golfer who generates high ratings is coming back soon -- a benefit for CBS, which will air a slew of tournaments starting in April. "The return of Tiger Woods is a welcome one," he said.

Plus, CBS should be helped next month by the coming March Madness tournament as advertiser interest in live, high-profile events appears to be robust. CBS could, however, lose rights to the hoops event after this year if the NCAA opts out of a contract.

Moonves said there is "ongoing dialogue" with the NCAA. "We're talking to them about all sorts of different ways of redoing the contract," he said.

In 1999, CBS signed an 11-year, $6 billion deal for NCAA rights that went into effect in 2003. Since then, however, the media landscape has changed drastically. Ad dollars, for example, that are attached to online streaming have emerged.

Several weeks ago, CBS Films released its first movie, "Extraordinary Measures," but it grossed little more than $12 million. The production budget was $31 million, according to boxofficemojo.com, and it was heavily promoted. Moonves said "we were disappointed," but expressed optimism about the three additional films coming this year.

There has been talk that networks would look to grab some of the growing retransmission consent fees that station groups are getting from cable, satellite and telco TV providers. Moonves indicated that CBS already is.

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