November 12, 2019
Over-the-top video distribution is beginning to generate real money for CBS. The media company now re-merged with former corporate parent Viacom, Nov. 12 said third-quarter (ended Sept. 30) revenue from OTT ventures CBS All Access and Showtime OTT increased 39% compared to the previous-year period.
Indeed, retransmission compensation, reverse comp and virtual MVPD revenue grew 18%, and total affiliate and subscription fees grew 12%, representing more than a third of CBS’ overall revenue in Q3.
Entertainment revenue increased 4% to $2.29 billion from $2.19 billion last year. The growth was led by affiliate and subscription fee revenue, which were up 22%, driven by increases in station affiliation fees and revenue from online TV, as well as subscriber growth at CBS All Access.
Content licensing and distribution revenue increased 7%, mainly from higher sales of series produced for third parties. Advertising revenue decreased 5% from the third quarter of 2018, primarily as a result of the timing of the broadcast of sporting events and lower revenue during the CBS’ 19-day carriage dispute with AT&T/DirecTV.
Entertainment operating income declined nearly 22% to $302 million compared with $384 million in the prior-year period. The decrease was driven by an increased investment in content, including a higher number of series produced for multiple platforms, as well as the company’s direct-to-consumer streaming services.
“We are building great momentum as we near our merger with Viacom and head into 2020,” Joe Ianniello, acting CEO, said in a statement.
Viacom reports fiscal results on Nov. 14.