CBS Corporation (CBS)’s Advertising Sales Remain Healthy

Over on Showtime, several juicy new series are also on tap. We anticipate that Showtime subscription figures will continue to increase, boosting fee revenues. Although not contributing a sizable proportion of revenues, the cable segment is a key to profit gains.

For comparisons, The Walt Disney Company (NYSE:DIS)’s ABC network is planning to launch seven or eight new programs in its primetime lineup this fall. ABC is trailing in the ratings books, causing The Walt Disney Company (NYSE:DIS)’s broadcast revenue and earnings to decline in the March quarter. The Walt Disney Company (NYSE:DIS), though, does not rely heavily on ABC, and profits are growing nicely behind its cable network, theme park, and even its film business. I recommend DIS shares, too, for long-term price appreciation.

What to Expect

CBS Corporation (NYSE:CBS)’ upfront ad sales are a sign that the broadcast TV market is still potent, despite its ongoing bleeding of share to cable, the Internet and other digital sources. This year’s advertising revenues should be stable. Still, CBS should continue to invest in newer forms of entertainment and capture young audiences. Such assets consist of premium cable, where it is already present, as well as video-on-demand services and online content, assets that are already contributing to profit gains for some of CBS’ fellow media firms.

Damon Churchwell has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Damon is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article CBS’ Advertising Sales Remain Healthy originally appeared on Fool.com is written by Damon Churchwell.

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