Due to the resession The CBS corp. reported a quarterly loss Thursday as its core business, broadcast television, becuase the advertising dollars have no been what they were. CBS reported a net loss of $55.3 million, in contrast to a profit of $244.3 million in the same quarter last year. This is equal to a loss of about 8 cents a share. CBS's revenue declined to $3.2 billion, compared with $3.7 billion in the same quarter last year. Becuase of this resession highly produced shows such as CSI are lacking the production they once had but CBS is still doing well in spite of this. CBS other shows have picked up the slack for this problem giving CBS the ratings it needs. The worst is said to be over according to Rupert Murdoch.
Its no suprise how much businesses are struggling from this economic decline but it amazing to see actually how much money some businesses (such as CBS) are actually losing. There is a possiblity that becuase of the resession that people are canceling their cable subscribtion also known as audence churn. This would give some reason as to why CBS has lost so much money becuase there are not as many people as there was with cable. Some ways CBS could try and increase revenue is by zoning. They could give the small businesses in a particular area the exposure they need and in return CBS would be having an income from those busniesses. Another way CBS could bring in money is by roadblocking. If they did this the adverisers may be more willing to put money into CBS as well as the other stations because they know that their ad will be aired at the same time all over the stations air time so more people will see their ad.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment