CBS Won't Take Commercials for Hard Liquor

  • by January 11, 2002
CBS has no plans to follow rival NBC and start accepting advertisements for hard liquor, Friday's Wall Street Journal reported.

Speaking at the twice-yearly Television Critics Association press tour in Pasadena, CBS Chief Executive Leslie Moonves said the network was against taking commercials for hard liquor. "We don't feel it is the right thing to do," he said. Although Moonves didn't completely rule out the possibility of the network eventually taking such commercials, his remarks echo those of his boss, Viacom Inc. President Mel Karmazin, who, while known for being an aggressive salesman, also has indicated a reluctance to tap that market.

Aside from concerns over a public backlash similar to the one NBC is enduring, CBS executives have privately said the network doesn't want to alienate beer manufacturers by taking spots for hard liquor. CBS carries a multitude of sports programs, which rely heavily on beer advertising. General Electric Co.'s NBC, on the other hand, has ceased airing professional football and baseball and will discontinue pro basketball after the current season.

Discussing CBS's recent takeover of operations for the sister UPN network from the Paramount studio, Moonves said there is a "fact-finding mission" under way to figure out how to integrate UPN with CBS. Since its inception in 1995, UPN has lost more than $1 billion.

While Moonves declined to speak in detail about UPN, executive changes are expected there within the next few days. Current UPN CEO Dean Valentine has sued the network over contract issues, and people familiar with the situation said settlement talks are ongoing. Valentine couldn't be reached for comment, and a UPN spokesperson declined to comment.

As for merging some operations of the two networks, people within CBS and Viacom have indicated that at least $10 million could be saved through such efforts. UPN also could carry additional games for sports such as the NCAA basketball tournament, Moonves said.

-- Dow Jones & Company, Inc.

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