CBS Corp. (CBS-A) reported this week that its second-quarter TV ad revenues fell, while its radio advertising also did poorly.
"TV revenue fell by 1% to $2.3 billion compared with the year-previous quarter. The company's TV segment includes a broad range of properties, including the CBS and UPN broadcast networks, TV stations group, pay-TV operations as well as TV production and syndication. CBS attributed the revenue drop was lower DVD sales of its popular programs. Leslie Moonves
Photo Credit: AP
"Radio revenue was down 8% this quarter compared to last year, to $519.1 million from $566.5 million, due to weak radio advertising. CBS is hoping to focus more on higher-growth markets and is likely to sell radio stations in 10 smaller markets. More than 100 staff positions were axed this quarter as CBS Radio attempted to reduce its cost structure. Radio sales were hurt by the departure of Howard Stern to Sirius Satellite Radio in January."
"Radio revenue was down 8% this quarter compared to last year, to $519.1 million from $566.5 million, due to weak radio advertising. CBS is hoping to focus more on higher-growth markets and is likely to sell radio stations in 10 smaller markets. More than 100 staff positions were axed this quarter as CBS Radio attempted to reduce its cost structure. Radio sales were hurt by the departure of Howard Stern to Sirius Satellite Radio in January."
When CBS Corp. CEO Leslie Moonves was asked concerning the potential for Internet growth in the future he replied, "It's going to grow more than 100% in 2006 from 2005 ... In terms of giving a specific number, it is very hard because these initiatives are coming in every single day. It will be in the hundreds of millions of dollars, though."
The only area that offered relief for CBS was its CBS Outdoor, which increased its revenue by 7%, growing from $499.3 million to $534.4 million.
This is going to be what the majority of media companies look like for years to come.
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