Political ads shore up CBS in downturn-Moonves
By Gina Keating
LOS ANGELES, March 11 (Reuters) - An unexpectedly long presidential primary season has helped CBS Corp (CBS.N) avoid the worst of U.S. economic doldrums, Chief Executive Les Moonves told analysts on Tuesday.
Moonves reiterated an earlier projection that CBS would take 10 percent of the total amount spent on political advertising, estimated at between $2.5 billion and $3 billion in 2008.
"We want this to be as long and as dirty as humanly possible. May it continue to be long and rough," Moonves said at the Bear Stearns 21st Annual Media Conference. "The amount of political advertising we are taking in is more than surpassing any potential downturn,"
Advertising rates in major markets continued to hold up, despite weakness in the economy overall and in local markets, with particular strength showing in live broadcasts such as sports, he said.
Advertising for the National Collegiate Athletic Association basketball tournament, scheduled to start later this month, already is 95 percent sold out at "very high (rates)," Moonves said.
CBS reaps 72 percent of its revenues from advertising.
"The scatter market is very healthy," he said. The scatter market is spot advertising sales, as opposed to advance advertising sales.
The company was looking for acquisitions in content and new media in the next couple of years but had no plans to sell radio or television stations unless prices go up, he said.
"There might be some terrific deals that are out there," he said.
The CBS network is "back to normal" after the writers strike, with all shows in full production, Moonves said.
The company planned a stripped down version of its "up front" ad sales in New York for its fall shows as a result of the strike, he said.
Syndication of the CBS network's hit shows was expected to produce "a banner year" of revenue in 2009, Moonves said.
The company also was looking to the Internet for new revenues streams, with projections that revenues from online content sales would grow quickly in three or four years. (Reporting by Gina Keating; editing by Carol Bishopric)
