) - a diversified media conglomerate - declared that it has
entered into a non-exclusive, multi-year licensing agreement with
Hulu, in order to telecast CBS's television library content on
the Hulu Plus subscription services. The financial terms of the
deal were undisclosed.
CBS Corp has always shown it eagerness to add diverse revenue
streams to hedge against economic cycles and its agreement with
Hulu is in sync with this strategy. The CBS content will start
featuring on Hulu Plus subscription services from the beginning
of calendar year 2013.
Moreover, over the coming months in 2013, Hulu Plus
subscribers will be able to enjoy more than 2,600 episodes from
CBS library series of '
' and '
,' along with classics such as '
I Love Lucy'
The Twilight Zone
Additionally, the company said that the clips from '
' will be accessible on Hulu and Hulu Plus on the day of its
telecast. A sorted collection of CBS library will also be
accessible on the free Hulu.com services.
Management at CBS Corp believes that this agreement has opened
up avenues for earning additional revenue going forward.
Moreover, the agreement is believed to demonstrate the strong
demand for CBS's rich library content.
Earlier, CBS Corp entered into a licensing agreement with Hulu
for CBS-produced programming, which is telecasted on 'The CW' and
for CBS content on Hulu's subscription services in Japan.
With an aim to add diverse revenue streams to its portfolio,
CBS Corp recently expanded into the fastest growing live gaming
and eSports market. Through CBS Interactive - one of its
divisions - the company has entered into a partnership with
TwitchTV - a leading video game broadcasting network- and Major
League Gaming - the world's most renowned eSports league.
We believe CBS is well positioned to drive growth in the
coming quarters through its strategic initiatives and operating
efficiencies. Management remains optimistic and expects growth
momentum to continue in fiscal 2012 based on reverse compensation
from affiliates, strong demand of its content and online video
streaming, retransmission consent, and political advertising.
The media industry remains highly competitive, and CBS
Corporation faces intense competition from other broadcast radio
and television stations; cable television networks; motion
picture studios such as
). This may weigh upon the company's results in the future.
We maintain our long-term Neutral stance on the stock, until a
top-line growth is being witnessed by the company. CBS Corp
carries a Zacks #3 Rank, implying short-term Hold rating for the
next 1-3 months.
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