CBS originally set 2020 as a deadline for its streaming service All Access and Showtime to have 8 million combined subscribers. The company said it will now hit that goal next year.
Further, CBS is forecasting the two services will amass 16 million total subscribers by 2022.
“During the quarter, each of our three revenue types enjoyed solid growth, led by affiliate and subscription fees, where we continue to see healthy gains in both traditional distribution and new digital platforms. Once again, our total subscriber base—including retrans, virtual MVPDs, and our own direct-to-consumer streaming services—continues to grow, and our average rate per sub is increasing as well. In particular, our direct-to-consumer platforms, CBS All Access and Showtime OTT, are greatly exceeding our expectations,” said CBS CEO Les Moonves in a statement.
The new forecast for streaming subscribers came as part of CBS’ second-quarter earnings announcement today. Revenues for the quarter rose 6% to $3.47 billion, up from $3.26 billion during the year-ago quarter. The company’s affiliate and subscription fee revenues were up 17%, led by 25% higher retransmission revenues and fees from CBS Television Network affiliated stations and 70% in digital lead by CBS’ streaming subscription services.
However, operating income at CBS fell 4% to $659 million due to restructuring and other corporate matters.
CBS’ entertainment revenues during the quarter rose 8% to $2.37 billion, thanks in large part to affiliate and subscription fees. Advertising revenues rose only 3% because CBS did not broadcast the national semifinals and national championship games of the NCAA Tournament like it did in the year-ago quarter.
CBS’ cable networks revenue rose 4% to $591 million, helped along mostly by the Showtime subscription streaming service. And CBS’ local media revenues rose 2% to $420 million, thanks to higher retransmission revenues that were partly offset by the absence of the NCAA Tournament.