After the market close, CBS reported revenue of $3.51 billion, missing analysts' estimated $3.95 billion. Adjusted earnings were $1.11 a share, edging analysts' projected $1.10 per share.
The company's entertainment unit saw revenue of $2.39 billion, below Wall Street's expected $2.45 billion. CBS's cable network revenue was $501 million, down from the $562 million in 2015.
Affiliate and subscription fee revenue grew 13% year over year to $770 million, helped by retransmission revenue, fees from affiliated stations and digital distribution services, which includes the company's online streaming service, CBS All Access.
CEO Leslie Moonves recently said All Access reached 1.5 million subscribers this month, up from the 1 million it had in July.
"We are already exceeding our projections to generate billions of dollars in incremental revenue, thanks to our new, fast-growing revenue sources and the strength of our base business," Moonves said in a statement Wednesday. "Plus, our over-the-top subscription streaming services are contributing more meaningfully to our results all the time."
Earlier this month, CBS agreed to merge its radio division with Entercom Communications (ETM) - Get Report. Moonves said the deal, which is expected to close in the second half of the year, will let the company focus "even more" on content and other "fast-growing" revenue streams.