CBS chief operating officer Joseph Ianniello flagged upcoming investments in the Australian TV network, telling analysts to “stay tuned”.
Ianniello said CBS grew its revenues 11 per cent in the quarter to $US3.9 billion. While TEN bolstered its advertising revenue, he said it wasn’t a significant proportion of CBS’ overall results.
“Without Network TEN we still would’ve still had [similar] growth,” he said.
“It’s not a significant deal on a $13.7 billion revenue base [over the year] – it’s hundreds of millions of dollars, in that magnitude.”
The planned investments in the Australian broadcaster would dilute TEN’s profit margin in the short term, he said.
Amongst its previously-announced plans is the launch of CBS All Access in Australia, after doing so in Canada, and thereafter Europe and beyond.
“Network TEN provides a number of compelling digital opportunities,” CEO Les Moonves said.
The company said it now has nearly 5 million subscribers for its CBS All Access and Showtime online streaming services. Its goal is to have 8 million (US) subscribers of the two services by 2020. CBS willlaunch “CBS Sports HQ,” an over-the-top sports service, later in February, and a streaming product based on the Entertainment Tonight entertainment-news program later this year.
Moonves said that CBS in 2018 was “poised to deliver results that will be by far the greatest financial performance in our company’s history.
“Trust me, you will not be disappointed.”