UBS Media Conference: CBS Sees Ad Rebound, Predicts Strong 2010 Upfront

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CBS Corp.'s broadcast network is finally reaping the benefits of an advertising rebound, and will be able to grab even more ad dollars once Nielsen is able to count viewing to other platforms said CEO Leslie Moonves, speaking at the UBS Global Media Conference in New York.

Monves also noted that the company's flagship, the CBS network, only had five to six spots left to sell for next year's Super Bowl.

The network has also been taking back promo spots from the marketing department to accommodate the demand from advertisers even as pricing runs 25% above the upfront. Moonves said CBS had three extra spots in primetime and two in late-night to fill demand for airtime. He said a few other networks were also in the same boat. CBS has added $100 million in volume in the fourth quarter as a result of the high demand.

On the retransmission front, Moonves said he was glad to hear Comcast issuing support for payments, now that it has a deal to acquire a 51% stake in NBC Universal. Traditionally, those fees have not been shared by broadcast networks, only cable channels. "That will be the second revenue stream," said Moonves. CBS has completed retrans deals which also include carriage for its Showtime pay-TV channel with Time Warner Cable, Cablevision and Dish.

As for how any new revenue would be split with non-owned station affiliates, Moonves said. "Nobody has a fixed amount," explaining that many factors affect how negotiations would go, including how much stations pay in reverse compensation and what they kick in to NFL payments. Such a figure is yet to be hammered out. "We want the affiliates to stay strong. It is not our goal to cripple them." When asked why CBS doesn't just transmit directly via the MSOs, Moonves explained that its because CBS has a strong commitment to local businesses, given its ownership of TV, radio stations and billboards in local markets.

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