At a conference this week public TV network CBS again mentioned the possibility of the NFL offering games on its streaming service CBS All Access.
Joe Ianniello, CBS COO said, “The math from where we sit, is pretty exciting. There's definitely upside value. The $6 seems to be the right price point without it, and we'll see where it goes if we can obtain it.”
CBS claims it will be a “win-win”. The consumer, the NFL and CBS will all have an upside in the deal. These announcements were made at Nomura's Media & Telecom Conference.
Clearly, the deal between the NFL and CBS is moving slowly as CBS CEO Leslie Moonves announced five months prior his goal to use CBS All Access to host NFL games. Although negotiations are in process, it will be unlikely that fans see this season’s games on CBS All Access. Thus far only Yahoo Inc. has agreed to terms with the NFL to stream a single game, the league’s annual visit to London.
As Walt Disney and Viacom suffered over the last week, media stocks suffered noticeably. Ianniello assured consumers on Thursday that despite the nature of the stock market, CBS cannot lose with their CBS All Access as its network will certainly not be left out of cable bundles. He stated, "Any successful new tier, new package, we're going to be part of it.”
It turns out CBS All Access is more lucrative than when traditionally televised. The network only receives a $2 fee for each sub while the streaming device receives $5.99 per sub. In addition, ads can’t be skipped on All Access and a CBS makes money on a CPM basis.
In order to keep the whole CBS package only available through CBS, Ianniello has purposefully spread the content around and not focused it in one area.
According Ianniello, CBS All Access isn’t hurting for subscribers as it outnumbers, SlingTV, the streaming service offered by Dish Network. Defending Netflix from being called a monopoly, he said that CBS makes much more money from licensing content internationally than to Netflix.