Lower Advertising And Higher Programming Costs Weigh Over CBS’ Q1 2015 Earnings

The company continues to see significant growth in retransmission fees and expects it to surpass $2 billion mark by 2020. CBS had one less Playoff game in Q1 of 2015 and this led to a 5% decline in advertising revenues. The company’s management stated that the scatter market is strong and up double digits currently. This is positive for the media industry at large and should aid the advertising for the upcoming 2016-17 television season. However, CBS continues to increase its reliance on more stable sources of income, such as subscription and retransmission fees. The company has so far been successful in doing that and the contribution of non-advertising income to total revenues has increased from 43% in 2009 to a little under 50% in Q1 2015.

Vía Forbes Real Time http://ift.tt/1RzgWs1