CBS to bring subscription video on demand service to Australia

CBS will look to bring its subscription video on demand service, CBS All Access, to Australia by the end of the year, the company has announced.

Leslie Moonves, CBS’ chief executive, told investors at the company’s earnings conference today how it planned to use Network Ten to launch the service service in Australia, as part of a wider strategy to scale its over-the-top (OTT) services globally.

Moonves has flagged CBS’ on demand service could be in market by the end of the year

CBS completed its acquisition of Network Ten six months agoThe company had been in administration from June, following the withdrawal of financial support by interests controlled by WIN owner Bruce Gordon, Lachlan Murdoch and James Packer.

At the announcement of the first quarter results for the US-based entity in New York overnight, Moovnes said by the end of the year, All Access would be launched in the local market.

CBS All Access is a subscription streaming video service. It offers original content and CBS library content and live streams of local CBS affiliate channels in certain US markets.

“Central to our success is the rapid expansion of our direct-to-consumer streaming services led by CBS All Access and Showtime OTT,” Moonves said.

“Some of our key competitors are just now entering the space, and we are already nearly two thirds of the way to our goal of 8 million subs between these platforms by 2020. Plus, by going over the top, we’re achieving higher rates per sub than any other form of distribution, which means these services are becoming more meaningful to our bottom line all the time.

“By year’s end, we plan to bring All Access to Australia using our acquisition of Network Ten as a gateway to launch in that market.”

Moonves also took the opportunity to discuss the company’s advertising revenue, which increased 8% in the first quarter.

“This growth was driven by Network Ten in Australia as well as a solid performance at the CBS Television Network, which was up 1% despite competing against the Winter Olympics,” he said.

“In addition, we also turned in our best ever results in profits. Operating income was up a solid 8% to $781 million. Net earnings from continuing operations was up a healthy 20% to $518 million and EPS was up 26% to $1.34, which once again was a new all-time high for us,” he said.


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