Advertising-supported cable networks are having a good year, and much of that is at the expense of traditional broadcast operations. The one of those which is a standalone company is CBS (CBS). Perhaps that is why it has made a desperate bid to get further into the online ad business by overpaying to acquire CNET (CNET).
According to The New York Times "Cable channels have been eroding broadcast viewership for years, and comparisons between them are inexact. This television season, though, the shifts are especially sharp."
CBS relies almost exclusively on its broadcast operations to drive revenue. The company’s shares are down over 15% so far this year. If cable keeps picking up ratings and pulling advertising away from networks, the problems at the CBS could get worse fast.
Douglas A. McIntyre