Networks executives have been slammed over their apparent doublespeak when it comes to digital media. How can digital represent such a boon, but there still not be any extra money to pay the striking writers? A month into the strike, it looks like they may be getting better at threading the needle — or at least Les Moonves has. During his keynote interview at the UBS Global Media Conference, Moonves spelled it out very slowly for the audience: “The future looks very bright… that day is not here.” So while the pie will be big, “right now, we don’t know what that pie is.”
Writer’s strike: In addition to explaining the above, Moonves described himself as “hopeful, but not terribly optimistic” about the state of negotiations right now. As he noted, there are new discussions today, and the company hopes to see some movement. As for the material impact, there will still be a full slate of content, and the network should be good for at least the next few months.”
Digital: Again, some very political statements from Moonves. While the company is looking to put more content online, “Most of this is about clips, not full episodes.” Read: nothing for the writers to get too upset about. On new initiatives: “It is very exciting, Quincy [Smith] is a force of nature…Quincy really believes it’s about community.” As an example, he mentioned music social net Last.fm, which he said would prove solidly profitable in 2009. He added that Last.fm is 80 percent international. “Quincy comes into my office three times a day, and I probably understand 50 percent of what he says. Everyday he mentions new companies — names like Bebo.” So, we can expect a lot more involvement in social networking type stuff, though nothing specific at the moment. Also, company not buying into massive valuations for social nets: “When you look at the price paid for 10 percent of Facebook, it’s a lot of money.” Eventually, the company will have social networking that ties into all of its programming (sports, news, entertainment, etc.)
Digital revenue: Not thinking of digital as a discreet business that has its own revenue. For now, it’s all tied into each unit.
Google: “We look at them as a friend, but we look at them cautiously.” CBS (NYSE: CBS) must get paid for its content. On the company’s YouTube channel, Moonves described it as a promotional tool that it also collects advertising revenue from.
Other digital: Effort underway at Simon & Schuster to convert its library into digital. Streaming radio will become a significant source of revenue at that unit.
Overall “There isn’t a business segment that we have that I’m pessimistic about.” On TV, recent ratings declines were partly chalked up to the way measurement has changed, with DVRs. Ultimately, still bullish on TV: “People have accused CBS of being too stable… If having three CSIs in the top ten, I’ll take stable any day of the week.” During the Q&A someone suggested that the company might get a better valuation on Wall Street if it were more transparent — perhaps then, investors might be able to buy into Moonves’ optimism. Moonves shot back, saying the company’s businesses are too intertwined, “I wouldn’t know how you would break those out.”
News: “Nobody is racing home to get the news… by the time they get home, they’ve gotten news.” They’re currently in discussions with the news writers in an attempt to avert a strike, though Moonves didn’t seem particularly concerned about this — then again, it’s his job to assure investors.
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