Outlining robust growth for his company's emerging revenue stream, CBS Corp. COO Joe Ianniello told investors that his company expects to be taking in about $800 million in annual revenue from both its CBS All Access and Showtime streaming platforms by 2020.
In his bullish investor-day presentation, Ianniello also said that CBS expects to be taking in about $2.5 billion in broadcast retransmission licensing and reverse compensation fees by 2020.
In forecasting CBS' streaming endeavors, Ianniello said the $800 million revenue figure would be split about evenly between All Access and Showtime's a la carte platform. He was told by one investment analyst that CBS would have to secure 4 million subscribers for Showtime's platform over the next four years in order to make that happen.
Ianniello said it was doable, given that Showtime has a linear TV base of about 90 million subscribers.
Meanwhile, boiling over with good news for investors, the CBS COO said the company is also bullish on dynamic ad insertion, implying that it could add as much as $250 million annually to CBS's bottom line, monetizing audiences who are not viewing programming within the confines of Nielsen's C3 and C7 audience windows.
Ianniello also echoed chest-thumping sentiments expressed by CBS Executive Chairman Les Moonves: the conglomerate's programming, he said, is too essential not to make the cut into skinny bundles.
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