MUMBAI: CBS CEO Les Moonves said he expects the media company to expand content license distribution agreements with Netflix and other subscription video-on-demand services.

Talking at the UBS Media conference, he said that demand for high quality content is growing as cable networks, and overseas distributors try to satisfy subscribers.

"We?re looking at a variety of ways to get paid from things that truly didn?t exist. The world has changed drastically the last few years. We can get paid for a new programme 12 different ways. Five years ago, it was one or two.?

Moonves also said that weaker ratings for the new TV season are due mostly to special factors and measurement systems that don?t fully capture audiences on new platforms.

MUMBAI: US media conglomerate CBS has posted operating income of $771 million in the third quarter of this fiscal, up 10 per cent. Revenues were $3.4 billion, up by two per cent, while OIBDA grew seven per cent to $898 million.

Revenue growth was led by an eight per cent increase in content licensing and distribution revenues, which were driven by higher domestic and international television license fees. Affiliate and subscription fee revenues rose by 12 per cent, reflecting growth at Cable Networks, higher retransmission revenues, and fees received from CBS Network affiliated television stations.

Advertising revenues were down by three per cent, primarily driven by lower advertising for CBS Radio, the impact of foreign exchange rate changes, and the impact of pre-emptions for the Republican and Democratic national conventions on six nights of the CBS Television Network?s primetime schedule.

CBS Corporation executive chairman Sumner Redstone said,"CBS has continued its remarkable run with yet another record quarter. Our world-class content and multiplatform distribution strategy remain at the center of our success."

CBS Corporation president, CEO Leslie Moonves said,"The transformation of CBS continues as reflected in these record third quarter results. We have taken a number of significant steps during the last several months to execute our strategy and grow the company. These include three major retransmission consent agreements, an important reverse compensation deal, new international and domestic streaming contracts, and the sale of our two new hit dramas, ?Vegas? and ?Elementary?, into international syndication. As we continue to take actions like these, we are increasing our recurring revenue from non-advertising sources and setting ourselves up for even more record results in the future. Going forward, we will continue to expand the ways we achieve value for our content, and we are confident we will hit our goal of a record 2012 and an even better 2013."

The growth in OIBDA and operating income was primarily driven by higher revenues and increased profits on television licensing revenues.

Free cash flow was $163 million for the third quarter of 2012, compared with $29 million for the third quarter a year ago. Free cash flow for the third quarter of 2012 included payments of approximately $60 million associated with the early extinguishment of debt, primarily for make-whole premiums. As of 30 September, 2012, the company?s debt outstanding was $5.93 billion and its cash balance was $947 million, which was $287 million higher than 31 December 2011.

Entertainment revenues of $1.68 billion for the third quarter of 2012 grew by three per cent from $1.63 billion in the same prior-year period, driven by increased domestic and international television license fees and higher retransmission revenues.

Advertising revenues were down from last year?s third quarter, primarily resulting from the broadcast of summer programming against the highly rated 2012 Summer Olympics and the impact of pre-emptions for the Republican and Democratic national conventions on six nights of the CBS Television Network?s primetime schedule.

Entertainment OIBDA for the third quarter of 2012 decreased 5 per cent to $384 million from $405 million driven by costs associated with the timing of theatrical releases and the mix of revenues.

Cable Networks (Showtime Networks, CBS Sports Network, and Smithsonian Networks) revenues for the third quarter of 2012 increased by four per cent to $436 million from $420 million for the same prior-year period driven by higher affiliate fee revenues, which reflect increases in rates and subscriptions at Showtime Networks (which includes Showtime, The Movie Channel, and Flix), CBS Sports Network, and Smithsonian Networks. Licensing revenues were down from the third quarter of 2011 reflecting the timing of digital streaming revenues. For the first nine months of 2012, streaming revenues increased significantly from the same prior-year period.

Cable Networks OIBDA for the third quarter of 2012 grew 12 per cent to $227 million from $203 million for the same prior-year period. This increase reflects the growth in affiliate revenues.

MUMBAI: This could be a game changer move if it goes through. Leslie Moonves, the Chief Executive of CBS Corporation, has confirmed that the American media major would be interested in buying the film and TV studios business of Sony Corporation if it‘s put up for sale.

Moonves, who recently extended his contract with the company till 2017, however cautioned that there were no specific plans right now to do a deal.

"We love our current portfolio, but as a content company, we would want to look at them," Moonves told Wall Street Journal in an interview.

He also said that CBS is prepared to distribute its content directly to viewers should there be disruption in its business model due to a la carte pricing and cord-cutting.

"We like the system now and we are being adequately paid for it," Moonves said. "But if the universe changes and they [viewers] want us to bring the content directly to them, then we can."

The media landscape of the US has changed considerably with the emergence of new technologies and platforms.

Even as online video is consistently eating into the viewership of traditional TV, pay TV operators like CBS are vying for a bigger share of subscription revenues which is leading to tensions between TV networks and pay-TV distributors.

Moonves believes that eliminating low-rated channels could be a solution for television operators if they want to improve bottom-line which is increasingly coming under pressure due to rising content costs.

"The truth is that he who has the most eyeballs wins. If that means eliminating some of the smaller channels, then so be it," he added.

Widely credited for turning around the CBS when the network was languishing at the bottom Moonves had joined CBS in 1995 as president of entertainment. He will complete 22 years at the media conglomerate at the end of his new five-year contract.

As per the SEC filing, Moonves will receive $3.5 million in annual salary with a $12 million target bonus. He will pocket $14.5 million in restricted stock on top of the restricted stock that he and other top execs receive each year.

MUMBAI: US media conglomerate CBS has announced a new agreement with president, CEO Leslie Moonves. The agreement supersedes his prior contract, which was to conclude in 2015, and extends his term with CBS through 30 June 2017.

Under the terms of the agreement, Moonves‘ salary remains at its current level. As before, he will continue to be eligible for an annual performance-based bonus and will receive equity-based compensation that further ties the value of the agreement to the performance of the Company‘s stock. At the end of his new term, Moonves will become eligible, at his discretion, to hold the position of an executive advisor to the Company for an additional four years. In addition, during that term, Moonves has the option to establish a production company under CBS‘ auspices.

CBS executive chairman, founder Sumner Redstone said, "This is terrific news for CBS and all of its constituencies. Leslie‘s record as a CEO is not only among the best in media, it‘s among the best in all of business. This agreement secures the company even further into the future, and it also further aligns and strengthens the interests of the chief executive with those of our shareholders. I look forward to all Leslie will continue to do as the genius that he is."

Moonves said, "I take great pride in all the tremendous success we‘ve enjoyed at CBS. And the good news is that I feel even more enthusiastic about what my terrific team and I will accomplish going forward. I am very gratified that my relationship with CBS will continue into the future, and I look forward to building on all of the exciting opportunities that lie ahead."

MUMBAI: DHX Media has entered into a definitive agreement to acquire the business of Cookie Jar Entertainment to create Canada‘s largest children‘s entertainment company.

DHX has acquired Cookie Jar at an enterprise value of $111 million, to be paid through a combination of approximately 36 million DHX shares, $5 million in cash, and the assumption of $66 million of debt.

The combined company will own the world‘s most extensive independent library of children‘s entertainment, including more than 8,550 half hour episodes.

"The acquisition of Cookie Jar is a transformational event for DHX that will significantly enhance our scale and our growth opportunities," said Michael Donovan, Chief Executive Officer of DHX. "Through this combination, we will strengthen our portfolio of brands, global reach, management depth and our position in the rapidly emerging digital distribution channels to become the market leader."

"Today is an exciting day for Canada‘s children‘s entertainment industry. Cookie Jar joining forces with DHX results in a company that is an independent global market leader in all aspects of children‘s entertainment from distribution to production to licensing and merchandising. There is an insatiable appetite for kids‘ content in the new digital streaming universe and we are very well positioned with our extensive library of evergreen, popular and recognizable brands to satisfy the market demand," said Cookie Jar‘s CEO Michael Hirsh.

Following the closing, Michael Donovan, current CEO of DHX, will continue to serve as CEO. Michael Hirsh, current CEO of Cookie Jar, will become Executive Chairman of DHX. Steven DeNure and Dana Landry will continue in their current roles of President & COO, and Chief Financial Officer, respectively. Cookie Jar‘s current President & COO Toper Taylor will continue to focus on digital distribution and business development. Aaron Ames, CFO of Cookie Jar, will assume the role of Chief Integration Officer reporting directly to the CEO.

Cookie Jar has a significant content library and features some of the world‘s most recognizable series including Caillou, Inspector Gadget, and Johnny Test. The company controls Cookie Jar TV, the weekend morning block on CBS. Cookie Jar has offices in Toronto, Los Angeles and in addition, throughout Western Europe, as part of its Copyright Promotions Licensing Group, a leading licensor and merchandiser of third party brands and characters.

Cookie Jar has experienced significant growth in digital distribution, growing revenue from that channel to $8 million in the 12 months ending 31 May. Over the same 12-month period, Cookie Jar had total revenue of $56.7 million and EBITDA of $12.6 million.

MUMBAI: US media conglomerate CBS has posted net earnings of $427 million for the second quarter ended 30 June 2012, up eight per cent.

Operating Income was $769 million, an increase of five per cent.

CBS executive chairman Sumner Redstone said, "CBS?s content continues to fuel the success of this great company. In a world where greatprogramming commands premium pricing, we continue to hit on allcylinders. I am extremely pleased with our terrific second-quarter results, and I am confident that Leslie and his management team willbuild on our momentum in the quarters and years to come."

CBS expects to show stronger performance in the second half of the year due to the US presidential elections and the Olympics. The prospects for 2013 also look good as the network has Super Bowl.

CBS president, CEO Leslie Moonves said, ?For all of these reasons, we?re confident 2012 will be a record year, and we will produce exceptional results in 2013 and beyond as well.?

Two factors in the second quarter of 2011 ? the Company?s initial multiyear digital streaming agreement (under which dozens of the Company?s library titles were first made available for streaming) and the semifinals of the NCAA Division I Men?s Basketball Championship (which aired during the first quarter in 2012) ? had an impact on the revenue comparison.

Second quarter 2012 revenues came in at $3.48 billion compared with $3.59 billion for the same quarter a year ago. Some of the impact was offset by growth in high-margin affiliate and subscription fee revenues, while underlying advertising revenues for the second quarter of 2012 reflected a steady marketplace. In addition, the OIBDA margin improved two percentage points, to a record 26 per cent and the operating income margin expanded two percentage points, to 22 per cent, in the second quarter of 2012.

Those increases, as well as the company?s record performance in the three key metrics mentioned above, reflect a higher profit margin on 2012 television licensing revenues as well as the growth in high-margin affiliate and subscription fees.

Free cash flow was $558 million for the second quarter of 2012, compared with $646 million for the second quarter a year ago. For the first half of 2012, free cash flow was $1.17 billion compared with $1.50 billion for the first half of 2011, reflecting higher investment in content (primarily television programming) and higher income tax payments. The company generated cash flow from operating activities of $1.26 billion for the six months ended June 30, 2012, versus $1.59 billion for the comparable prior-year period.

Entertainment

Entertainment (CBS Television Network, CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS Films, and CBS Interactive) revenues of $1.71 billion for the second quarter of 2012 decreased 7 per cent from $1.84 billion in the same prior-year period. Last year?s second quarter benefited from the initial licensing of the company?s programming for digital streaming, the third-cycle domestic syndication sale of Frasier, and the semifinals of the NCAA Division I Men?s Basketball Championship, which aired during the first quarter of 2012 versus the second quarter of 2011. Some of the impact was offset by growth in high-margin retransmission revenues and higher international syndication revenues in the second quarter of 2012.

Cable Networks

Cable Networks (Showtime Networks, CBS Sports Network, and Smithsonian Networks) revenues for the second quarter of 2012 increased by eight per cent to $446 million from $413 million for the same prior-year period. The results were driven by higher affiliate revenues, which reflect increases in rates and subscriptions at Showtime Networks (which includes Showtime, The Movie Channel, and Flix), CBS Sports Network, and Smithsonian Networks, as well as higher licensing revenues from the digital streaming of Showtime original series.

Outdoor

Outdoor revenues for the second quarter of 2012 decreased by two per cent to $481 million from $490 million for the same prior-year period, driven by the unfavorable impact of foreign exchange rate changes. In constant dollars, revenues increased 1 per cent from the second quarter of 2011.

Revenues for the Americas (which includes North America and South America) increased by two per cent in constant dollars for the second quarter of 2012, principally driven by growth in the US billboards and displays businesses, partially offset by the impact from the nonrenewal of the Toronto transit contract.

Revenues for Europe increased by one per cent in constant dollars, primarily reflecting higher advertising sales associated with the 2012 Summer Olympics in London. Some of this increase was offset by weakness in the European economy and the nonrenewal of certain contracts.