CBS Misses Revenue Estimates Despite Jolt From Super Bowl

  CBS Misses Revenue Estimates Despite Jolt From Super Bowl

    Revenue from its direct-to-consumer streaming services reaches a record level.    

Subscribers to the company's CBS All Access product and its Showtime OTT streaming service grew 71% from a year earlier. PHOTO: LUCY NICHOLSON/REUTERS.

By Micah Maidenberg and Benjamin Mullin
May 2, 2019 8:04 p.m. ET

Analysis By Kevin Nguyen
https://www.wsj.com/articles/cbs-misses-revenue-estimates-despite-jolt-from-super-bowl-11556831103

CBS is one of the largest broadcasting companies in the U.S. According to CBS Corp, the Super Bowl helped raise its first-quarter profits, but they also missed a lot of revenue due to weaker production. The importance of live sports for CBS's performance is very critical. Executives have begun talking to many sports organizations especially the NFL (National Football League). One of the ways the company gets its revenue is from its direct-to-consumer streaming services. According to CBS acting Chief Executive Joe Ianniello, CBS plans on spending around $8 billion on programming in 2019. By doing this, the company will be matching themselves with other companies. The Super Bowl gave the company a18% rise in revenue. However, the revenue in the company's cable networks business declined by 3% because of lower programming sales. CBS's first-quarter revenue went up 11% from the previous year to $4.17 billion.

This relates to marketing because CBS is trying to take advantage of large events like the Super Bowl to marker its network. The more branding and commercials they have on their network, the more money they will acquire. I know that they host the SuperBowl every year, so with this mindset, I think they can do other large sports events too like the NBA finals, Soccer, Golf, etc. By branding towards other sports and larger scale events such as the SuperBowl, CBS can create a larger audience which will also create a larger stream of revenue. I chose this article because I love watching the Super Bowl and thinking about all of the highly anticipated commericials just made sense for me to elaborate my thoughts on the topic. There is a lot of money to be made during the Super Bowl, especially through the commercials!