CEO: CBS All Access, Showtime OTT Top 2 Million Combined Subs28 Jul, 2016 By: Erik Gruenwedel
Upstart subscription streaming video platforms CBS All Access and Showtime OTT, have reached 1 million subscribers per service, CBS CEO Les Moonves said on the company's July 28 fiscal call.
The data, which puts both services on par with HBO Now, showcases increasing consumer demand for standalone access to premium TV content, while underscoring the significant gap with OTT video pioneers: Netflix, Hulu and Amazon Prime Video.
“That’s well ahead of where we’d thought we’d be this early in the game,” Moonves said. “We anticipate a significant lift next year with the launch of our new 'Star Trek' series on CBS and 'Twin Peaks' on Showtime.”
THe executive said the season four premiere of "Ray Donovan" led to a significant lift in Showtime OTT streaming subscribers in July. The service plans to coordinate premieres of "Shameless," "The Affair" and "Homeland" in different months between now and January.
Content licensing revenue in the second quarter (ended June 30) increased 16%, due in large part to an international deal with Netflix for “Star Trek” catalog episodes. CBS also licensed "Carpool Karaoke" with James Corden ("The Late Late Show") to Apple Music, a first-time video content licensee with the network.
"This represents a significant new buyer in the SVOD marketplace," Moonves said. "We think it fits really well with Apple Music. Clearly their music service has gone from zero to many millions of subs really quickly, and they're very excited about promoting it."
Revenue, which topped $3.28 billion, benefited from 44% growth in retransmission revenues and fees from CBS Television Network affiliated stations, as well as revenues from new digital distribution platforms.
The entertainment segment, which includes CBS Television Network, CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS Interactive and CBS Films, reported $351 million in operating income, up 34% from operating income of $262 million. Revenue increased 9% to $1.94 billion.