CEO says ad-free CBS All Access for $10 is 'very possible'
Nov. 04, 2015
LOS ANGELES (AP) — CBS is contemplating offering its online service CBS All Access free of ads for $10 a month, a $4 surcharge that matches what online video service Hulu charges for stripping out commercials.
CEO Les Moonves told analysts Tuesday "it's a very possible thing for the future" to charge $9.99 for an ad-free version of the service. His statement, following the release of the company's quarterly earnings, came just a day after CBS announced it would run a new "Star Trek" series exclusively on the online platform in 2017.
Moonves said CBS All Access had its largest subscriber growth yet in September, helped by new shows, without specifying further. He called the service "a major priority" as young people's viewing habits increasingly shift to mobile devices and away from appointment viewing.
The New York company said revenue fell 3 percent to $3.26 billion in the quarter through September, coming up short of the $3.27 billion expected by analysts polled by FactSet. It blamed fewer sporting events and the lack of an election for hurting ad revenue.
Net income fell 74 percent to $426 million, or 88 cents per share, a decline largely cause by a one-time revenue boost last year from splitting off its outdoor billboard business. The earnings still topped estimates for 80 cents per share.
Shares rose 3 percent, or $1.47, to $49.71 in after-hours trading after the results were released.