Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Time Warner Inc (TWX), CBS Corporation (CBS): Why TV Loves March Madness

The Florida Gulf Coast Eagles are the reason that March Madness is America’s greatest sports spectacle.

And that’s why CBS and Turner Sports, the networks that are showing the games this year, love the tournament.

“The Florida Gulf Coast who?” you may well ask. My point, exactly. This little-touted team, based in Fort Myers, Fla. — which is anything but a traditional hotbed of basketball prowess — has captured the nation’s imagination. It is the first time that a 15th-seeded team (out of 16) has advanced to the round of the Sweet Sixteen, on the strength of its highly entertaining and decisive victory on Sunday night against the vastly outclassed San Diego State squad.

Time Warner Inc (TWX)

That a team virtually nobody outside of the Sunshine State had ever heard of could advance in the tournament as far as such perennial collegiate powerhouses as Kansas, Duke, and Michigan State means everything. The networks appreciate the two-pronged spectacle, meaning, first, the tournament is a truly national affair and, second, Cinderella is right at home here. Sports fans love rooting for the underdog, the David versus the Goliath, and there is no shortage of that sort of drama this year in the tournament.

That’s precisely why Time Warner Inc (NYSE:TWX)’s Turner Broadcasting and CBS Corporation (NYSE:CBS) secured a $10.8 billion, 14-year deal to broadcast NCAA’s March Madness basketball tournament beginning in 2011. The arrangement meant that for the first time, every game would be televised live across four national networks: CBS, TBS, TNT, and truTV.

The tournament is booming. CBS, which has shown March Madness games since 1982, and newcomer Turner could wind up airing more games than ever before. The NCAA, whose slate of teams increased to 68 from 65 in 2011, could go, before too long, as high as 96 teams, college basketball pundits have speculated.

And why not? America loves this annual national Mardi Gras. In every office in the nation you’ll find otherwise serious, well-educated men and women spending more time examining the progress of their NCAA brackets than their boring old spreadsheets.

For CBS, which will be showing the Final Four and championship games, “March Madness” has a bonus this year. The final weekend of action will occur on April 6, with the two semifinal contests, and April 8, the championship game. This means that CBS Corporation (NYSE:CBS) will benefit on the bottom line in its second quarter, too. Having the NCAA’s final weekend and the Masters golf tournament on back-to-back weeks in April will virtually guarantee a huge television audience and strong advertising dollars for the network.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.