• by Joe Mandese  @mp_joemandese, May 9, 2006

CBS has emerged as the most advertising-dependent of the major media companies, according to a breakdown of its post-Viacom spin-off filed this morning with the Securities and Exchange Commission. In it, CBS discloses that 72 percent of its revenues during the first quarter of 2006 came from advertising sales. That's a big leap from the old Viacom, which derived less than half of its revenues from advertising sales, and shows how indispensable Madison Avenue is to CBS' fortunes.

However, CBS appears to be weaning itself off that dependence, albeit modestly. The company's share of revenues derived from advertising sales actually declined three points from 75 percent during the first quarter of 2005.

CBS' biggest growth area came from licensing its TV programs to other outlets. Such licensing fees now account for 13 percent of the company's revenues up from 9 percent a year ago.

Affiliate related revenues were flat at 7 percent, as were publishing related revenues at 5 percent. "Other" revenues declined from 4 percent to 3 percent of CBS' base.

The downturn in advertising's share of CBS' revenues, however, does not appear to be intentional, and likely reflects a steep drop in radio advertising sales following the departure of shock jock Howard Stern from CBS Radio to the Sirius satellite radio network. During the first quarter CBS' ad sales dropped $12.5 million to $2.57 billion due mainly to radio losses. "Radio advertising revenues decreased 6% reflecting a decrease in average unit rates and units sold," the company disclosed.

Interestingly, CBS said TV advertising revenues were only "relatively flat" during the period, belying the network's claims that it is ascendant as it heads in the 2006-07 upfront advertising sales season.