Moonves mulls entry into movie business
CBS mulls films
June 22, 2006
NEW YORK -- CBS Corp. has received more than 20 offers in a first bidding round for radio stations in 10 markets, president and CEO Leslie Moonves said here Wednesday.
He also provided a few new tidbits about CBS' look at potentially entering the film business.
Moonves said his company would likely focus on six to eight movies a year and reiterated that "we are exploring it," without saying when a final decision is likely to come. He also reiterated recent comments that CBS would concentrate on films in the $20 million-$50 million budget range and look for financing partners from the private equity world (HR Web site 6/14). "We are not looking to do 'Superman.' We could get in in a small way that is risk free," he said.
Moonves also for the first time explained how the idea for a film business entry came about. "The day after our split (from Viacom Inc.), I got a call from Harvey Weinstein who wanted to do a Showtime deal" with CBS, arguing that it is tough to launch a film operation without a channel relationship.
Discussing the sales process for up to 40 radio stations, Moonves said "we are very pleased with the first round (of bids) we have seen come in this past week." He didn't specify the types of suitors, price tags nor the likely timetable for the process. A CBS spokesman declined further comment.
Moonves also said Wednesday that the upfront was "successful" for CBS and for the big broadcast networks, with three of them bringing in CPM increases. Plus, the to-be-formed CW network got prices equal to the WB network last year, he added, without providing financial specifics.
Moonves also reiterated his prediction that retransmission fee revenue received by CBS from cable operators and other distributors could over the next three to four years reach "a few hundred million dollars."
Asked about the best business model for a content company like his to make money online, the CBS CEO Wednesday said so far "the advertising model worked much better than the (subscription-based) video on demand model" for CBS, as evidenced by the additional Internet money the firm made with its NCAA tournament online video coverage this year.
CBS reaped more than $4.2 million in incremental online ad revenue, Moonves reiterated, compared to only $200,000 when the company charged consumers for the NCAA online offering.
He also provided a few new tidbits about CBS' look at potentially entering the film business.
Moonves said his company would likely focus on six to eight movies a year and reiterated that "we are exploring it," without saying when a final decision is likely to come. He also reiterated recent comments that CBS would concentrate on films in the $20 million-$50 million budget range and look for financing partners from the private equity world (HR Web site 6/14). "We are not looking to do 'Superman.' We could get in in a small way that is risk free," he said.
Moonves also for the first time explained how the idea for a film business entry came about. "The day after our split (from Viacom Inc.), I got a call from Harvey Weinstein who wanted to do a Showtime deal" with CBS, arguing that it is tough to launch a film operation without a channel relationship.
Discussing the sales process for up to 40 radio stations, Moonves said "we are very pleased with the first round (of bids) we have seen come in this past week." He didn't specify the types of suitors, price tags nor the likely timetable for the process. A CBS spokesman declined further comment.
Moonves also said Wednesday that the upfront was "successful" for CBS and for the big broadcast networks, with three of them bringing in CPM increases. Plus, the to-be-formed CW network got prices equal to the WB network last year, he added, without providing financial specifics.
Moonves also reiterated his prediction that retransmission fee revenue received by CBS from cable operators and other distributors could over the next three to four years reach "a few hundred million dollars."
Asked about the best business model for a content company like his to make money online, the CBS CEO Wednesday said so far "the advertising model worked much better than the (subscription-based) video on demand model" for CBS, as evidenced by the additional Internet money the firm made with its NCAA tournament online video coverage this year.
CBS reaped more than $4.2 million in incremental online ad revenue, Moonves reiterated, compared to only $200,000 when the company charged consumers for the NCAA online offering.
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