CBS, owner of the most-watched U.S. TV network, on Thursday reported revenue in which missed Wall Street estimates largely due to lower ad sales, sending shares lower.
The company’s shares were down 1 percent on Friday morning.
CBS, like its peers, is actually looking to diversify its revenue away by advertising as more advertisers shift spending to online by television.
The brand new York-based broadcaster, home to such well-known shows as “The Big Bang Theory” and also also also “Homeland,” reported a profit of $1.11 per share, beating analysts’ average estimate of $1.07.
However, Wall Street seized on the company’s revenue results of $3.17 billion, which missed the analysts’ estimate of $3.26 billion, according to Thomson Reuters.
“CBS makes money through subscriptions and also also also advertising and also also also both of these are at risk,” said Brett Harriss, an analyst at Gabelli & Co, a Rye, brand new York-based firm in which is actually the second largest shareholder of controlling shares of CBS. “however CBS is actually the best positioned because they own their own streaming service in which can act as a hedge.”
CBS said on Thursday in which in which receives more revenue per subscriber by digital platforms than traditional ones.
CBS Chief Executive Officer Leslie Moonves told analysts on a call on Thursday in which in which makes double the amount by an online streaming service subscriber than in which does by a traditional cable or satellite subscriber. Furthermore, CBS makes three times as much by a subscriber of its own CBS All Access streaming service.
“Not only are we not as affected as others by cord-cutting, however in which carries a real measurable upside for us,” Moonves said on the call.
CBS, which owns cable channel Showtime and also also also publishing house Simon & Schuster, said revenue by affiliate and also also also subscription fees — which includes revenue by cable TV operators and also also also by its own streaming content — rose 52 percent inside quarter.
CBS is actually focused on owning more of its own content in order in which in which can make more money by its shows through licensing deals, both domestically and also also also abroad, executives told Reuters.
The company currently owns 65 shows, double what in which owned several years ago, executives said.
Despite concerns about National Football League ratings, Moonves said he had not seen one advertiser stop running ads.