CBS - LOCAL TV SALES CRASH

As auto sales slow in the wake of the current recession -- and, in particular, soaring gasoline prices -- auto manufacturers are cutting back on advertising expenditures, something that has had dire consequences for local television stations, where auto dealers often account for a significant percentage of sales. However, with fewer cars being sold and with manufacturers reigning in contributions to the dealers' ad buys, stations are reportedly being impacted by the recession more severely than the networks. On Thursday, CBS Corp. reported that although it showed a 2 percent increase in revenue, its operating income fell 12 percent. In a conference call, CBS chief Les Moonves blamed the downturn on "softness in the local advertising marketplace at our TV stations" and, in particular, the drying up of revenue from automotive accounts.

01/08/2008