CBS Corp. (TV broadcast & cable properties only)

Link

by Mike Liebenson

[1] CBS Logo

CBS Headquarters
51 W. 52nd Street
New York, NY 10019-6188
1-212-975-4321 [1.5]

KEY EXECUTIVES

[2] Leslie Moonves- President and Chief Executive Officer, CBS Corporation

[3] Sumner M Redstone- Executive Chairman

[4] Joseph Ianniello- Chief Operating Officer

[5] Anthony G. Ambrosio, Senior Executive Vice President, Human Resources and Administration, CBS Corporation.

OVERVIEW

CBS Corporation is an industry-leading mass media company that creates and distributes content across a multiple platforms to audiences worldwide. Spanning virtually every field of media and entertainment, CBS’s operations include cable, film, radio, publishing, local TV, and interactive/social media. [6]

Network Portfolio

[7] All of CBS’s Assets

CBS is home to one of the world’s largest libraries of media content, making it one of the most recognized brands in business. Specific to television, CBS’s businesses include CBS Television Network, The CW, Showtime Networks, TVGN, CBS Sports Network, Smithsonian Networks, CBS Television Studios, and CBS Television Stations [6].

CBS CURRENT FALL SEASON

[8] One of the Thursday Night Football games featuring San Diego at Denver.

The 2015 season has been kind to “The Big Eye,” with the network averaging 12.2 million viewers daily. This puts the network ahead of every other network, with NBC trailing behind at 9.8 million [9]. Part of this is due to their addition of Thursday Night Football to their fall line-up. Each week their installment of football, which replaced conventional series for the first two months of the season, topped Thursday nights for total viewership. The final game aired earned a 13.2 rating and 23 percent share [10]. That’s slightly less than the all-time high overnight household rating of 13.7 when the season opened on September 11. While Thursday Night Football has done well, analysts projected it to do even better. Yesterday RBC Capital Markets’ David Bank dropped his earnings forecast for CBS by 27 cents to $3.07 because of the ratings letdown [8].

Newcomers

Among CBS’s five other newcomers for the 2014-2015 season, only one was a half-hour sitcom. The Mccarthys, which debuted 1.7/5 in the 18-49 share and 8.08 total million viewers [12], but has fallen to 1.4 and 6.53 total million viewers [13].

[11] First Look

Of the four dramas that premiered this season, consisting of Madame Secretary, Scorpion, NCIS: New Orleans, and Stalker, Scorpion has the strongest for the 18-49 share while the NCIS spin off has the highest overall views. Scorpion debuted at 3.2 share, but has decreased to a low 1.9 as of their 11/24 episode [14].

[15] First Look

NCIS New Orleans debuted at 17.37 million views, and as kept most of its view with their most current episode garnering 14.47 million views. NCIS: New Orleans, along with its predecessor, both skew older and target viewers above the age of 50 [16]. All four of the new dramas have been picked up for full seasons as of 10/28/14 [17].

[18] First Look

Returning Shows

[19] The cast of The Big Bang Theory

Of its current series, CBS boasts the most watched scripted series by both total views and 18-49 shares. The Big Bang Theory, which moved back to Thursdays as of 11/20, has consistently had highest 18-49 share for a scripted series with their most current rating averaging a 4.1 as of 11/25 [20]. Their eighth year’s average is lower so far than their past season, which averaged a 5.1 rating in the 18-49 demographic with 17.65 million total viewers. The series is renewed until season 10, though, with higher salaries for their lead actors as well [21].

[23] The cast of NCIS

NCIS captures the most viewers for a scripted series every week with their 11/25 episode garnering 16 million viewers. This season is also down from last, with their 11th season of NCIS averaged a 2.8 rating in the 18-49 demographic with 18.5 million total viewers [22]. Even with their top shows dipping in the numbers slightly, CBS is maintaining a steady flow of cash revenue.

FINANCIALS

[24] 2014 Q3 earnings for CBS

CBS is publicly held. As of their 2014 third quarter report, CBS’s shares rose 2.3% from $3.30 billion in 2013 to $3.37 billion now [24]. This was mostly thanks to a 4% increase in content licensing and distribution revenues from higher domestic and international licensing of their television programming. The main Entertainment unit, which includes the CBS TV network and studios, saw a 1% increase in revenues to $1.91 billion. Thanks to the political revenues of the midterm elections and their introduction to Thursday Night Football on CBS, the corporation saw their advertising revenue increase by 2%. In cable networks, like Showtime, revenues were up 5% to $624 million due to the company’s increased rates and increased cash flow from license agreements for its original series [25]. As of December 1 at 4:02 pm, CBS’s stock closed at $54.47, a .75% decrease from the day before [26].

MAJOR HAPPENINGS

CBS All Access

[27]

On October 16, 2014 CBS announced a first for any of the major traditional broadcast networks; subscription based multi-platform access to their content called CBS All Access [28]. For $5.99, the network will offer subscribers episodes from their current and classic shows on-demand across computers, tablets, and smartphones. Subscribers will also have the ability to live stream local CBS television stations in 14 of the most popular U.S. markets; And that number will only grow [28]. The most important amenity of this new service is that customers do not have to be subscribers of a cable or satellite company to access this service; They just need to pay their subscription to seamlessly interact with CBS’s content across their multiple platforms.

TVGN to POP

[29] Redesigned Logo

The TV Guide Network, a joint venture between CBS Corp. and Lionsgate, is planning to receive a major facelift in January of 2015. TVGN will be rebranded as POP, a network centered on the celebration of American fan boy culture [30]. The theme has a much more unique POV, allowing the channel to look at anything that draws on the experience of high intensity fans. POP will launch with more than 400 hours of original programming, featuring A New Kids on The Block reality series, a scripted series, entertainment news, red-carpet specials, and other exciting new content. One series in particular, The Story Behind, will look inside the origin stories of successful hit series [29]. CBS is hoping to be able to obtain more money a month per subscriber. The current TVGN commands two cents a month in comparison to networks garnered towards similar audiences, like E!, that get 24 cents a month per subscriber. Their hopes extend to increased ad revenue as well, since it is on the smaller side [30].

CBS vs. Dish Dispute

[31]

Tensions are rising between CBS and the no. 2 Satellite Distributor over this past month. On November 14, CBS reached out to Dish Network subscribers to inform them of the impending loss of their affiliated channels due an unresolved deal between the two companies after their carriage contract expires at the end of November. CBS has extended the deadline twice, with their deal now supposed to close by the end of the first week in December [31]. The deal seems to me more about rights over CBS content rather than financial issues, specificaly Dish’s ability to include it in the over-the-top service that it aims to launch as well as offering out-of-home viewing rights to their subscribers. There is been concern over Dish’s Hopper DVR service that allows users to record large amounts of primetime with one button. The rollout of this new DVR launched lawsuits against Dish by the major broadcasters, not just CBS [32].

Works Cited

[1] CBS Logo, Deadline.com, RT: 12/1/14

[1.5] CBS Contact, cbscorporation.com, RT: 12/1/14

[2] Photo of Leslie Moonves, cbscorporation.com, RT: 12/1/14

[3] Photo of Sumner Redstone, cbscorporation.com, RT: 12/1/14

[4] Photo of Joseph Ianniello, cbscorporation.com, RT: 12/1/14

[5] Photo of Anthony Ambosio, cbscorporation.com, RT: 12/1/14

[6] About CBS, cbscorporation.com, RT: 12/1/14

[7] Assets of CBS, cbscorporation.com, RT: 12/1/14

[8] Photo of Thursday Night Football, deadline.com, RT: 12/1/14

[9] CBS 2014-2015 Ratings, tvseriesfinale.com, RT: 12/1/14

[10] ‘Thursday Night Football’ Ends on High Note, hollywoodreporter.com, RT: 12/1/14

[11] The Mccarthy’s- First Look, youtube.com, RT: 12/1/14

[12] Thursday Final Ratings (10/31), tvbythenumbers.zap2it.com, RT: 12/1/14

[13] Thursday Final Ratings (11/25), tvbythenumbers.zap2it.com, RT: 12/1/14

[14] Scorpion: Season One Ratings, tvseriesfinale.com, RT: 12/1/14

[15] Scorpion- First Look, youtube.com, RT: 12/1/14

[16] NCIS: New Orleans: Season One Ratings, tvseriesfinale.com, RT: 12/1/14

[17] NCIS: New Orleans, Scorpion, Madam Secretary, Stalker: CBS Orders Full Seasons, tvseriesfinale.com, RT: 12/1/14

[18] NCIS: New Orleans- First Look, youtube.com, RT: 12/1/14

[19] The Big Bang Theory Cast Photo, moviepilot.com, RT: 12/1/14

[20] The Big Bang Theory: Season Eight Ratings, tvseriesfinale.com, RT: 12/1/14

[21] ‘Big Bang Theory’ Renewed Through Season 10, hollywoodreporter.com, RT: 12/1/14

[22] NCIS: Season Twelve Ratings, tvseriesfinale.com, RT: 12/1/14

[23] NCIS Cast Photo, jenniferbadger.com, RT: 12/1/14

[24] CBS Corporation Earnings Release, cbscorporation.com, RT: 12/1/14

[25] CBS Narrowly Beats Q3 Earnings Estimates, deadline.com, RT: 12/1/14

[26] CBS Interactive Stock Chart, finance.yahoo.com, RT: 12/1/14

[27] CBS Offers Digital Subscription Service, youtube.com, RT: 12/1/14

[28] CBS New Multi-Platform Digital Subscription Service, cbscorporation.com, RT: 12/1/14

[29] Meet POP, variety.com, RT: 12/1/14

[30] TV Guide Network To Relaunch In Early 2015 As POP, variety.com, RT: 12/1/14

[31] CBS Will Star on Dish Through the Weekend, deadline.com, RT: 12/1/14

[32] Carriage Talks Progress, variety.com, RT: 12/1/14

Sinclair Broadcast Group

Posted on September 19, 2012 by stgeer

by Steven Geer

Logo courtesy of www.sbg.net

Headquarters – 10706 Beaver Dam Road, Hunt Valley, Maryland 21030

Telephone – (410)-568-1500

Social Media – LinkedIn, Facebook, Twitter (@sbgi)

Brief History

http://www.broadcastingcable.com/photo/262/262314-Credit_Nicholas_Griner_Baltimore_Business_Journal.jpg

David B. Smith, President & CEO – Photo courtesy of Nicholas Griner, Baltimore Business Journal

Sinclair Broadcasting Group is a telecommunications company located in Hunt Valley, Maryland, USA. Founded as Chesapeake Television Corporation in 1971 by Julian Sinclair Smith, its station ownership started in Balitmore (WBFF), Pittsburgh (WPTT/WPMY) and Columbus (WTTE). In 1985, the remaining stocks of the business were bought out by Smith’s four sons and its name was changed to Sinclair Broadcast Group.

Since 1988, David B. Smith has served as President & CEO while the remaining brothers hold executive positions as well. Their leadership brought the company to a new level, expanding both its audience reach and content variety. In 1995, the company became publicly traded on NASDAQ with the symbol SBGI [1][2].

Sinclair Broadcasting was a pioneer of local marketing agreements in the early 1990’s. Though many stations are owned and operated by Sinclair, others are affiliated through LMA’s. Sinclair’s stations are affiliated with major networks like Fox, NBC, CBS, and ABC. Also, this company was one of the first to experiment with “prepackaged” news programs, produced by the news organization, News Central [3].

Sinclair has a diverse array of holdings outside telecommunications as well. Ring of Honor Wrestling is just one of their many subsidiaries. They air the content they produce in certain markets and upload some episodes to YouTube.

Here is Ring Of Honor Episode 54 from October 11, 2012:

Recent Acquisitions and News

A buying spree in 2011 and early 2012 added the assets of Four Points Media Group, the Freedom Communications stations group, and six stations from Newport Television [4][5][6]. Sinclair Broadcast Group now operates the largest number of local television stations in the United States.

Their most recent acquisitions closed December 1, 2012 and include stations in new and previously established markets. In addition to increasing the audience reach of Sinclair 3%, these purchases also increased the number of affiliated stations in Sinclair’s portfolio. Some of the stations now owned by Sinclair are WTTA (MNT) Tampa, KBTV (FOX) Beaumont, WKRC (CBS) Cincinnati, WOAI (NBC) San Antonio, WHP (CBS) Harrisburg, WPMI (NBC) and WJTC (IND) Mobile, KSAS (FOX) Wichita, and WHAM (ABC) Rochester.

See all of Sinclair’s holdings and their information here.

Sinclair’s Markets – Map courtesy of Sinclair Broadcast Group

The failure of New Central and Sinclair’s profile as a “profit first, journalism second” broadcaster prompted the company to shift its focus to quality news in local markets. Sinclair’s recent acquisitions included many local news stations, atypical purchases for the company, but smart because of their powerful local presence. Sinclair has even joined the National Association of Broadcasters, a sign that they’re willingness to participate in Washington alongside competitors [7].

Hurricane Sandy had a large impact on many viewers in Sinclair’s markets, creating an opportunity for the company to serve its local constituents. During the storm, Sinclair provided non-stop coverage by “simulcasting” the news programs online. This allowed those without power to access it using mobiles phones and tablets. Online streaming and other technology platforms are being considered at Sinclair Group. Chief tech executive Del Parks spoke for the company claiming that the multiscreen experience is, “a very personal thing for our news operations.” Simulcasting was also used this fall in local office campaigns within certain Sinclair markets by streaming town hall debates on their website [8].

On November 13, 2012 it was announced that Sinclair Broadcasting would be partnering with Datasphere, a technology company aimed at small business solutions in major media and reaching the hyperlocal market. Sinclair’s television station websites will be retrofitted with Datasphere’s event calendars for local event lists in each market. An example of this calendar can be seen on WBFF Baltimore’s event website. This will be used alongside a whole new technology platform at Sinclair Group. It is a full-sized service that connects local small businesses to media companies for advertising needs. Datasphere’s services will be introduced into 21 markets including Austin, Baltimore, Columbus, Dayton, Nashville and San Antonio [9].

Sinclair attends many industry conferences. Their next conference is the JP Morgan Global HYLFC in Miami Beach, February 25-27, 2013.

Financial Overview

Sinclair’s income statement for December 2, 2012 shows the stock price settling at $11.03; this is still low compared to their period of $14.00+ shares back in 2003-2004. This company has battled through the economic recession, however, showing staggering growth in returns over a three year period. In fact, they’ve quadrupled the 3 year return percentage of their competitor Belo Corporation from 2009 to 2012 [10].

SBGI Total Returns Comparison

Chart courtesy of www.ycharts.com

Three year returns are a significant figure for a long-term shareholder of this company. High returns indicate a growing business. Sinclair has rebounded from the recession and continues to show steady growth.

High third quarter revenues this year were reported following Hurricane Sandy’s aftermath. The 44% increase from $181 million to $260 million was attributed to political advertising associated with the campaign season and a spike in automotive advertising on Sinclair’s stations. After reaching retransmission agreements with networks like Comcast and Dish, Sinclair found that higher retransmissions revenues also contributed to the figure [11][12].

Hear or watch the rebroadcast of the 3rd quarter 2012 earnings results here.

Sinclair’s financial calendar is as follows:

February 6, 2013 – Fourth Quarter 2012 Earnings Report
May 1, 2013 – First Quarter 2013 Earnings Report
June 16, 2013 – Annual Shareholders Meeting
August 7, 2013 – Second Quarter 2013 Earnings Report
November 6, 2013 – Third Quarter 2013 Earnings Report

Controversies

Sinclair Broadcasting, though successful and respected in the industry, is not immune to scrutiny by its competition and the public eye. The company is known for blatantly taking sides on social and political issues including political campaigns. A conservative bias can be noticed in the programming Sinclair chooses to air around election time. Even so, they deny any partisanship and claim to only be informing and engaging the public.

Photo courtesy of cbs12.com

The 2012 Presidential Campaign was another opportunity for Sinclair to garner the profits of political advertising at the cost of their audience’s scheduled news programming. The decision to preempt regular programs in order to air the “ABC 6 Election Special – VOTE 2012” didn’t sit well with supporters of Obama [13]. The special was aired in markets all located in battleground states.

A writer for The Baltimore Sun wrote in an article that, “the only thing that was lower than the attack-ad-dominated style of campaigning by both sides was the performance of an increasingly superficial and partisan press,” [14][15]. Sinclair has since rejected the criticism, claiming that the specials were focused on the issues and not so much the candidates, and that the markets where they were aired had more “news value.” [16]

Watch a recap of the election special here.

In a dispute with Dish Network this past August, Sinclair was ready to black out 74 of its stations carried by Dish when they wouldn’t accept a new retransmission agreement. A public exchange of words between the two companies resulted in high tensions and little motivation for Sinclair to bargain with the distributor. Dish claimed that Sinclair was charging more than any other broadcaster, resulting in higher subscription fees for customers. Sinclair, however, views retransmission fees as an important resource for the company. A multi-year consent agreement was finally reached after several weeks. Sinclair has become increasingly aggressive towards television providers and retransmission fees. Similar disputes between Mediacom, Time Warner, and Comcast all ended with agreements favoring Sinclair [17].

Sources

[1]: http://www.sbgi.net/about/history.shtml

[2]: http://www.nasdaq.com/symbol/sbgi

[3]: http://www.sbgi.net/about/profile.shtml

[4]: http://www.broadcastingcable.com/article/473517-Sinclair_Grabs_Four_Points_Stations_for_200_Mil.php

[5]: http://www.reuters.com/article/2012/07/19/sinclairbroadcast-acquisition-idUSL4E8IJ3M120120719

[6]: http://www.reuters.com/article/2012/07/19/us-sinclairbroadcast-acquisition-idUSBRE86I0OY20120719

[7]: http://www.broadcastingcable.com/article/481963-Local_TV_s_Death_Star_Gets_in_Sync.php

[8]: http://www.tvnewscheck.com/article/63574/second-screens-now-a-necessity-at-sinclair

[9]: http://www.sacbee.com/2012/11/13/4981878/datasphere-teams-up-with-sinclair.html

[10]: http://ycharts.com/companies/SBGI/performance

[11]: http://www.google.com/hostednews/ap/article/ALeqM5hmOfM9u5nekq4hbPyXAmLOj9OErg?docId=365c480866ce41d9b245673a0f614900