CBS Affiliates to Get $1/Subscriber on Streaming Plan

As reported by sources, affiliates of CBS Corporation CBS, which are part of the CBS All Access streaming network, are expected to get an amount of roughly $1 per subscriber, per month.

These affiliates are entitled to this payment as they contribute to CBS’ over-the-top (“OTT”) service by lending signals to the channel in their markets. Further, the share of revenues for these affiliates will be decided as per a template generated between CBS and its affiliate board. Per sources, affiliates are free to negotiate for their share or simply go by the template.

However, the income generated by CBS affiliates is directly proportional to the number of subscribers, as is clear from the anticipated $1 per subscriber payment.

CBS had introduced its standalone “All Access” streaming network in Oct 2014 across nearly 16 markets. Through this OTT service, the company offers consumers the option of streaming broadcasts as well as access to videos on demand for episodes of existing and old seasons.

The CBS All Access is available on the company’s website as well as on Apple Inc.’s AAPL iOS and Android apps on mobile phones. This network, which is available to consumers at $5.99 per month, highlights the company’s strategic focus on expanding the reach of its content across as many platforms as possible.

The service has already garnered a significant number of subscribers. Per sources, in a recent conference, the company was in the process of making an agreement with its affiliates to further the reach of this service, countrywide. This move, along with the aforementioned $1 per subscriber payment, is likely to motivate CBS affiliates to advertise this network, enhancing its popularity.

CBS currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include Starz STRZA and Tribune Media Co. TRCO, each with a Zacks Rank #1 (Strong Buy).

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