CBS - WILL STRIKE GIVE CBS A BLACK EYE?

WILL STRIKE GIVE CBS A BLACK EYE?

Sumner Redstone's decision to split Viacom into two separate companies, Viacom and CBS, in 2006 may have been taken without reckoning the consequences that a major strike would have on CBS. Analysts warned Thursday that CBS will likely be hit hardest by the writers' strike if it continues into January since, unlike the other major media companies, it has few other businesses that can offset lower advertising income for its television network and owned stations. Lehman Bros. analyst Anthony DiClemente, in an interview with Bloomberg News, noted that TV network ad sales comprise two-thirds of CBS's sales and profit, while ABC, NBC and Fox are each a part of larger media conglomerates that include other businesses, including theme parks, publishing, and cable networks. CBS also includes fewer nonscripted programs in its schedule than its rivals, although CBS chief Les Moonves indicated on Nov. 1 that the network has stockpiled a "full slate" of programs that could be rolled out in case of a strike, and CBS News executive producer Susan Zirinsky said earlier this week that the news magazine 48 Hours will likely be called up to act as a "utility player" for the network, filling in for strike-canceled shows. And CBS said Thursday that it will hold New York auditions on Sunday for new players for a possible mid-season run of Big Brother -- the first time the reality series has not aired during the summer.

16/11/2007