The CBS chief flipped the argument that Time Warner Cable CEO Glenn Britt made yesterday when he said that he may drop pricey cable channels that generate hash-mark ratings.
“That means for the channels that are getting viewers, he’s going to pay more,” Les Moonves told the UBS Global Media and Communications Conference today. “He should pay the most for the guy who’s the No. 1 network.” Moonves milked the laughs: “We’re going in next year for $7″ per month per subscriber. Although he acknowledged that he’s joking, he added that “it’s bugged us that cable channels showing reruns of our shows were getting paid more” than CBS was for its first-run programming.
Moonves kept things light, referring at one point to actor Angus T. Jones as “that kid on Two And A Half Men who’s getting paid $300,000 per episode to talk bad about me.” Jones recently called on people to stop watching the show due to its “filth.”
On a more serious note, Moonves reiterated his call for ads to be sold based on the number of people who watch up to a week after they air — up from the current three days. That would provide a 10% lift for CBS. He says the change should take place in a year and a half, “I’m willing to bet on that.” Moonves also repeated points that his chief researcher David Poltrack made yesterday in defense of broadcast TV. The weak ratings for CBS and other networks so far this season “is not a content issue,” he says. “This has been an aberration” with the election and additional NFL games airing on Thursdays. “By the end of the year…you’re gong to see the comps really level off.” He adds, though, that “one thing we need to have happen is for Nielsen to get better” measuring audiences on DVRs, VOD, and streaming platforms. He calls this season “a tipping point” to demonstrate that overnight ratings “are less and less significant than they ever were.” With all of the new technologies, “it’s a brave new world out there.”


I’d love to know how much each channel gets paid per subscriber per cable/satellite system, but I suppose that info is buried in a deep, dark vault…?
So hes saying broadcast networks are upset that cable channels get paid more per subscriber for showing content that they buy from broadcast networks’ studios, which the studios make billions on over the syndicated lifetime of the shows?
The financial situation is kind of pathetic if what Les Moonves says is on target. How does CBS, the KINGS of Syndication, get finagled so badly out of some prime earning dollars?
Correct me if I’m wrong here, but the reason why cable networks get so much more retrans $ than broadcast nets is that the cable operators get ad inventory to sell on cable networks and do not on the broadcast nets. It’s pretty simple.
Not really. Cable is not “retransmitted” as it was not available over the air for free. Broadcast has always been available for free and the FCC forced cable companies to give space to any network that could be picked up with an antenna. This included UHF stations. It’s a “must carry regulation”. The UHF stations take advantage of the law to keep channel space. The VHF stations originally went free, then stayed free in exchange for second tier cable networks they had an interest in getting picked up by the cable companies: ESPN 2, MSNBC, History etc. back when channel space was limited and cable networks would give programming for free to get carriage. With the change to digital and unlimited space there’s room for everyone, but what are viewers going to pay? Competition is fairly recent. It’s not the old days when you could have broadcast or cable from a single franchise. So the packages offered have to be attractive or people will go to: Dish, DirectTV, Fios, AEREO, Hulu, Netscape…It’s a different game. And the subscriber fee is the winner, not the local ad sales revenue.
When a head honcho makes a statement like this: “…that kid on Two And A Half Men who’s getting paid $300,000 per episode to talk bad about me.” in public, you can just imagine what he’s saying behind closed doors. Hardly a “light” moment if you read between the lines.
The US government should be charging CBS for all the free airwaves they are using. CBS should pay me because they air crap like 2.5 Men. THEN if you want me to pay $7 per month for good programs (without me seeing any commercials and shameless self-promotion which are also largely crap), then I’ll gladly pay.