CBS considers cost-cutting measures as program expenses skyrocket
Article Abstract:
CBS Corp. is considering staff reductions and other cost-cutting steps to contend with skyrocketing costs for sports and entertainment programming. Cable networks are continuing to make strong profits, while broadcast networks' earnings are under pressure. As a result, TV executives are exploring a variety of ways to save money. CBS may sell its New York City Broadcast center, and "outsource" its technical jobs to outside contractors. Faced with declining audiences and exploding programming costs, the 3 major networks are scrambling to reduce their overhead. The soaring costs are the result of the networks aggressive spending on programs to draw viewership. This month, CBS reported net income quadrupled in the second quarter, to $4 million , but overall stock fell nearly 6% the day of the profit report.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Hollywood's plunge into German TV looks like flop
Article Abstract:
A blocked merger with Bertelsmann AG by the European Union has forced the DF-1 satellite television operations of the Kirch Group to the brink of financial collapse. Kirch now may not be able to meet its programming obligations to companies, such as Viacom Inc.'s Paramount Pictures, Time Warner's Warner Bros., Sony Corp., Seagram's Co.'s Universal Studios, and Walt Disney Co. Kirch, which also has $579 million in start-up losses and a shortage of subscribers in a limited German market, is seeking to unload its estimated $4 billion programming obligations before it is forced to shut down its DF-1 broadcasting operations. Premiere, owned by rival Bertelsmann, has agreed buy 75% of Kirch's movie rights and Deutsche Bank AG has given Kirch a fresh loan.
Comment:
Kirch Group receives new loan to prevent financial collapse
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
News Corp. holds talks with Kirch on buying stake in German media firm
Article Abstract:
Kirch Group is talking with News Corp. about a $600 to $650 million deal in which News Corp. would acquire a minority stake in the German media company. Industry analysts have said that while News Corp.'s Rupert Murdoch is interested in gaining a foothold in the profitable German media business, the Kirch Group, whose assets include one of Germany's largest television networks, is seeking an injection of badly-needed capital. An agreement between the two companies would give News Corp. a significant share of about $4.4 billion in advertising revenues for Europe's largest television market.
Comment:
In talks with Kirch Group about $600-650 mil deal in which News Corp. would acquire minority stake in German media company
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Cool, cooler, coolest: Web awards proliferate. The enforcer
- Abstracts: CBS affiliates to share costs for first time. High-stakes battle for momentum. Can football revive CBS?
- Abstracts: G.M. dealers see dwindling supply of hot models. Bit of progress in talks to end strikes at G.M. As G.M. idles plants, talks make progress
- Abstracts: GM is closing rest of North American operations. GM to make Delphi Unit independent GM shutdown looms in North America
- Abstracts: Cisco planning an alternative to traditional switch systems