This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

CBS Makes Old New

NEW YORK ( TheStreet) -- Star Trek and I Love Lucy are making CBS (CBS - Get Report) an emerging winner in the media space.

The media conglomerate reported profit more than doubled in its second quarter, lifted by its domestic streaming content deal with Netflix (NFLX - Get Report) which rakes in new money for old shows.

CBS' revenue grew by 8%, driven by a 21% surge in content licensing and distribution.

Most recently, CBS also struck a similar deal with Amazon (AMZN - Get Report), the benefit of which was not realized during the quarter, but which CBS expects to get a boost from in the second half of the year.

"When you look at our current content, our ownership position, we have a pretty phenomenal library. And what we like to say about both Amazon and Netflix, none of the things we sold are currently shows that are on the air," Chief Executive Leslie Moonves said during a conference call with Wall Street.

While the deals include original episodes of old classics, as well as staples like Cheers and Frasier, they also include more recent series like Medium, which went off the air this past year.

"What we've been able to do successfully is continue to replenish our library, Moonves said. We have three CSIs that are now on the air that aren't part of these Netflix deals or Amazon deals. One day, they will come off the air, and we will get a lot of money for those in those platforms."

CBS' library also includes the old Paramount library, the Aaron Spelling library (which includes hits like Beverly Hills 90210 and Charmed) and Teen World library.

These deals boast a very high margin, with Chief Financial Officer Joseph Ianniello putting it at about 60%.

On top of this, CBS foresees new entrants coming into the marketplace, and says it will look to negotiate online distribution deals with these players in the future.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $128.46 0.00%
AMZN $380.16 0.00%
CBS $59.10 0.00%
DISH $75.04 0.00%
GOOG $558.40 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs