Unlike Disney (DIS) and NBC U (GE) — both of which have boasted $1 billion in annual revenue derived from digital — CBS has made no such claims. But CEO Les Moonves said CBS sold $200 million in digital ads in 2007, and that figure would grow 30% to 40% over the next few years.
Moonves said the $200 million is restricted to digital advertising, and doesn’t include other digital revenue such as licence fees or revenue from digital video on demand. He said nearly all digital revenue flows directly to CBS’s (CBS) bottom line, less bandwidth costs.
“The conventional wisdom said it would take from other forms of advertising, but that hasn’t happened,” he said at the McGraw Hill Media Summit. “The things that will be hurt are print, to some extent radio and smaller TV stations. Our digital revenue is growing greatly and hasn’t slowed down the network pie. It’s additive in most cases.”
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