CBS Chief Suggests TV Channel Shakeout Could Be Good for Industry

By Karla Robinson
October 23, 2012

CBS CEO Les Moonves, who recently renewed his contract until 2017, recognizes the need for the TV industry to evolve in light of new digital offerings.
“Moonves has an answer for cable and satellite operators who complain their profits are getting squeezed by continually rising content costs: eliminate low-rated channels from their lineup,” reports the Wall Street Journal.
He says having hit shows helps networks avoid high-level fee disputes that can result in channel blackouts.
Moonves said he would be interested in expanding CBS’s content portfolio by buying Sony Corp.’s film and TV studios businesses. There are, however, no specific plans in the works right now.
“With online video options growing, overall viewership of traditional TV has slipped lately, according to Nielsen. At the same time, the push by broadcasters such as CBS for a share of pay TV subscription fees has intensified tensions between entertainment companies and pay TV distributors,” explains WSJ.
“Moonves also said CBS was prepared to distribute its content directly to viewers, via apps or Web portals, in the event that a la carte pricing and cord-cutting eventually threaten the company’s business model,” the article continues.
“We like the system now and we are being adequately paid for it,” Moonves says. “But if the universe changes and they [viewers] want us to bring the content directly to them, then we can.”

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