Reply #3: If only we were so lucky... [View All]

[ALoeppert]

I would love for the networks to go out of business, because others would surely take their spots, and could hardly do a worse job...

But no... and have you noticed the that the networks and the cable business are one in the same.

Let's just look at CBS. I just went to their website and got shareholder information on its parent company.

It owns, or partially own:


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CABLE NETWORKS: The Cable Networks segment operates MTV MUSIC TELEVISION, SHOWTIME, NICKELODEON/NICK AT NITE, VH1 MUSIC FIRST, MTV2 MUSIC TELEVISION, TV LAND, TNN: THE NATIONAL NETWORK, CMT: COUNTRY MUSIC TELEVISION, the BET CABLE NETWORK and BET JAZZ: THE JAZZ CHANNEL, among other program services.

TELEVISION: The Television segment consists of the CBS and UPN television networks, the
Company's owned broadcast television stations and its television production and syndication
business, including KING WORLD PRODUCTIONS and PARAMOUNT TELEVISION.
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And then looking at the where it's revenues come from:

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For the year ended December 31, 2002, contributions to the Company's consolidated revenues from its segments were as follows: Cable Networks 19%, Television 30%, Infinity 15%, Entertainment 15% and Video 23%.
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Hmm, their television business seems to generate the most revenue... doesn't seem like it's dying. Wait... maybe it's still losing money.


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Television (CBS and UPN Television Networks, Television Stations; Television Production and
Syndication):

                        2002     2001      2000
Revenues              $7,490.0  $7,247.7  $5,426.4
Operating income (OI) $1,202.4  $  402.1  $  351.0
OI as a % of revenues       16%       6%        6%

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Interesting. It almost looks like they've been making more and more money over the pass few years. I wonder if the networks know their business is almost dead.


Information taken from:
http://www.viacom.com/pdf/Viacom10KWExhibits3-27-03.pdf