CBS Corporation (NYSE:CBS) affiliates that are participating in the CBS All Access through contribution of their linear signals within the market have the chance to earn between 50 cents and $1 per subscription per month, as said by a CBS affiliate who was familiar with the deal.
As further said by the source, the revenue apportion is embedded in a ‘’template’’ which has been negotiated between the CBS Corporation (NYSE:CBS) and the CBS affiliate board. However the individual affiliates have the option to either use the template or negotiate their own terms.
The earnings of the affiliates through the CBS-board deal would be dependent on the number of subscribers that sign on. The greater is the number of subscribers, the greater is the cut- limited up to $1. In the last October, CBS has launched All Access, offering it directly to customers at an amount of $5.99 per month, in 16 markets where it has CBS stations set up.
Along with the live signals of the O&Os, the service includes on-demand access to most current and popular past CBS shows. Remarkably absent is the NFL service, the authorization to distribute online is yet to be received by CBS.
Last Wednesday, at the Deutsche Bank media conference, Leslie Moonves, CBS CEO, declined to tell the number of subscribers of the All Access, however he did mention that it was more than 1 lakh that the Dish Network is known to have accumulated for its all-cable Sling OTT service.
The CBS O&O markets, where CBS Corporation (NYSE:CBS) All Access is now available, has 43 million homes, 1 lakh subs is just a tiny fraction. The subs only will generate $7.2 million annually, at $5.99 per month.
Moonves also remarked that CBS was about to close a deal with the affiliates that would extend the reach of service, and that the CBS expect All Access to be launched throughout the country within a few months.