CBS sees Q4 profit hike, Netflix pact

Ted Danson in "CSI" CBS is at predicts offer an original series for Netflix since it develops its content business, moving beyond selling the streaming service its old series.CBS chief professional Leslie Moonves didn't provide particulars in the new show. Nevertheless the Eye's readiness to produce content for Netflix is proof that Moonves doesn't see Netflix just like a rival to CBS. "Unless of course obviously they are doing 22 several hours each week of premium content, we don't have a look their way just like a competitor," he mentioned.Streaming certification pacts with Netflix together with other shops plumped up CBS profits last quarter whilst revenue dipped simply on lower political advertising. But that will change fast since the primaries warm-up, he guaranteed within a business call Wednesday to go over earnings. CBS is "searching toward numerous nastiness on sides" to fill its coffers, Moonves mentioned. "They're speaking in regards to the number $2 billion. Generally, we have 9%-10%. That's usually ballpark," he mentioned. That was the figure spent for local broadcast spots inside the political 2008 cycle. Moonves sees it flowing nicely to radio additionally to TV.CBS Corp. profit rose 30% last quarter to $370 million. Professionals guaranteed that existing output contracts with Netflix, Amazon . com . com and Hulu Plus and completely new ones would keep the gold gold coin flowing each year.Earnings slid to $3.78 billion inside the fourth quarter from $3.9 billion on tough critiques in the prior year, which incorporated second-cycle distribution acquisition of "CSI."The entertainment division -- made up of CBS, CBS Television Art galleries, CBS Art galleries Intl., CBS Television Distribution, CBS Films, and CBS Interactive -- saw revenue ease 1% to $1.9 billion. Advertising revenue was flat.But operating earnings rose to 31% to $275 million on streaming deals, retransmission pacts reducing costs.Professionals mentioned scatter pricing is up in mid-teens from last year's upfront and major groups are rebounding introduced by automotive. CBS has appeared most likely probably the most upbeat among large media companies up to now round the condition in the ad market carrying out a dour fourth quarter. "Because of our ratings we are commanding a lot of the scatter market," Moonves mentioned.Local broadcast, including TV and r / c, saw revenue fall by $100 million to $721 million. Operating earnings was lower 18% to $242 million.Cable network revenue rose 10% to $1.62 billion. Modified operating earnings nosed up 3% to $169 million. They're heady occasions for Showtime, which passed 21 million clients and basically won two Golden Globes including best television drama series for "Homeland." At Simon & Schuster, revenue reduced 1% to $229 but sales of digital content elevated 83%. Digital sales are are less costly and so are more profitable, which introduced with a 50% rise in operating earnings to $27 million. Outdoors revenue firmed 1% to $514 million. Operating earnings elevated 80% to $76 million on more profitable contracts. Briefly remarks within the opening in the call, CBS chairman Sumner Redstone referred to as Moonves "a genius" 4 or 5 occasions. "Thanks Sumner, greatly, for the excessively kind introduction," Moonves mentioned. Contact the number newsroom at news@variety.com