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CBS' Moonves Says Costs For Sports Rights Are High, But Still Make Money For Network

CBS President & CEO Les Moonves yesterday said the net is "leading in total viewers by a fairly decent margin" so far this TV season, and added sports programming has been "phenomenal." Appearing on CNBC's "Closing Bell," Moonves noted the NFL has delivered CBS its "highest ratings in 19 years." He added the net is "going to be profitable" with the NFL, PGA Tour and college football and basketball both this year and "during the length of these contracts." Moonves: "It costs a lot of money, the NFL especially costs a lot of money. But guess what? It's worth it. You make money, the ratings are phenomenal, you don't have to worry about technology (because) people watch it live and it does extraordinarily well. So we're very happy with our profile" ("Closing Bell," CNBC, 12/10). Moonves yesterday also appeared at the UBS Global Media & Communications conference and said that advertisers are "increasingly willing to pay for those audience members who watch via digital video recorders, video-on-demand and online streaming." He added, "We're getting closer to getting paid for every eyeball that watches our shows." Moonves said that the window for ad revenue "could be extended even further to 30 days, though CBS would probably not be able to charge as much for those more-delayed viewers." However, in L.A., Ryan Faughnder noted advertisers for whom "timing is important, such as movie studios, probably wouldn't embrace a window of seven days or more" (LATIMES.com, 12/10).

LIVE SPORTS REMAIN MUST-SEE TV: VARIETY's Brian Lowry reports Time Warner Cable President of Sports, News & Local Programming David Rone yesterday said live sports are the "last vestige of must-see programming." Rone's comments came during a Hollywood Radio & Television Society panel, and help "explain the escalating rights fees for those events and proliferation of regional sports networks dedicated to specific teams and conferences." Warriors co-Owner Peter Guber "emphasized the unique appeal of live events in general," and spoke "enthusiastically about using cellphones to create second and third-screen experiences in concert with such events, both for fans in the arena and at home." NBC Sports Group Chair Mark Lazarus said that the "key for any of these major sports players remained in securing distribution, maintaining that phenomenon of cord-cutting ... is 'still a long way out'" (VARIETY.com, 12/10). Guber said live sports are a "vital element" along with other forms of live entertainment. CABLEFAX DAILY notes panelists also "marveled at how multiplatform has transformed the way networks relate to fans, cover sports events and value the content itself." Guber said that sports have "always been interactive, making mobile devices a vital part of the experience -- and one that nets and leagues must embrace" (CABLEFAX DAILY, 12/11 issue).

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