Les Moonves Threatens to Pull CBS from Dish Network Over the Hopper

[Zoneboy]

CBS Corp. CEO Leslie Moonves kicked off Wall Street's fall conference season by laying down an ultimatum regarding Dish Network's Hopper DVR service and touting the strength of the Eye's advertising biz as the presidential race heats up.

The AutoHop feature on Dish's new Hopper DVR makes it super easy for viewers to skip through all commercial spots on primetime network shows.

"Hopper cannot exist," Moonves told investors at the Bank of America Merrill Lynch Media Conference Wednesday. "If Hopper exists, we will not be in business with (Dish). We cannot produce episodes for $3.5 million a piece and have the people at Dish say they will pull out the commercials. We will not be on Dish. We will go elsewhere."

Moonves talked of "money rolling in" from political advertising ahead of the presidential election but said it's early to gauge the overall market before the new TV season starts.

"Every day they're writing a few million dollars. It's coming in a little bit later (but) it's very healthy," he said of political ad spend, noting CBS local station strength in battleground states like Pennsylvania, Florida, Michigan and California.

Moonves said half of local ad revenue comes from primetime and late night, which haven't started yet. "People are waiting to see results and who delivers," he said.

To financial folk who came seeking clarity on ad trends, digital content and possible deals in the media space, he said tune in two weeks from now. "As soon as there are some clear winners and losers the market starts to change. It happens fairly quickly," he said. "We're ready to go. Let the games begin. We feel a lot of the scatter market will come our way."

He said cancellations from the upfront to now have been minimal.

The main story in the market continues to be the return of the automakers. "The fact that they are back has changed the whole climate," he said.

In other categories, "some are up some are down, nothing else stands out either way particularly good or particularly bad."

He said the Super Bowl in February is 90% sold out for up to $4 million a spot, way ahead of where it was when the net last aired in three years ago.

Non-advertising related revenue led by retransmission fees and reverse compensation will be north of $250 million this year, he said, and hit $1 billion by 2017 if not sooner.

Over the past year, CBS also took in over $1 billion in international content sales.

As for deals, he said "there's no burning desire on our part to acquire anything" but hinted that cable nets would be attractive to him.

"We are a content company, the number one television network. Looking down the road you always say 'Could we manage some of the cable assets that are out there better than other people?' Absolutely. Would we like to add a general cable channel? Perhaps. We are programming people. We know how to do this."

At the same time, Moonves left no doubt about where his focus remains.

"Cable networks like to talk about their original content but 'NCIS' is still the highest rated show on USA," he said, and "The Big Bang Theory" on TBS. "I know there's a lot of bells and whistles, (but) the originals are following the big shows off-network."

Moonves once again defended CBS' conservative stand on selling content. "We are still very protective of our content. Other networks (who aren't) aren't in first place," he said. Putting too much out there could threaten the company's core revenue streams from advertising, domestic and international syndication and retransmission.

"All are buckets that are potentially in jeopardy if you put their content out there too much and too soon. We are more conservative (but) our business model is working for us. Our network is very profitable."

CBS has no plans of offer pay cabler Showtime as an over-the-top service. "We like the ecosystem as it is," he sad.

He expects CBS will ink a program licensing deal with Comcast's Streampix digital service. "We like them," he said.

Asked about news, he acknowledged that years of on-and-off attempts to join forces with CNN, which he didn't name, had fizzled but implied he's still be willing to do a deal. "They can reach out and we'll take their call." He said the status of CBS News is much higher now than it was two to three years ago. "Scott Pelley's ratings are up significantly from his predecessor, whose name I will not mention."

http://www.variety.com/article/VR1118059161

[Regulus]

Let him eat cake! People who haven't "Cut the Cord" yet use DVRs so they don't have to put up with all the Political Propiganda, not to mention the Age-Inappropiate Commercials that pollute the airwaves. Advertising is a Gamble, you are betting people will see your ad and respond to it. If nobody wants to see it too bad, maybe if you didn't try to offend everyone you'd get better results.

[comedyfreak]

If people don't want to watch commercials that's their choice, let him take it away we will have others boycott his stinkin station! I myself have the regular dvr and I always fast forward past the stupid commercials anyway. Moonves has to go!!

[Yong Fang]

I am an American living in China and I watch all my shows online without any commercials. This is not from HULU or the networks because of some (damned mother ******* ) copyright rule. I don't really care about copyright, I want to watch my shows. But for Americans, they (or I) don't need to sit down on Monday nights, turn on the CBS affiliate and watch his shows. I can watch it anytime. 21st Century baby! I have however heard that there are some cable systems who also do internet that forces the customer to purchase the cable with the internet and one cannot get internet only, because of people like myself. I'm too lazy and non technical to figure out how to hook the computer to my flat screen, but my big Apple buddy is as big as my college dorm set and I sit on it constantly at home.

-----------

In the late 1990's, I was the owner of a house (that was later sold) that was in a neighborhood about 30 miles south of Memphis in Mississippi. However, this area was still countryside. All the houses were equipped with the Dish, with the ugly disc hanging off my roof. From my first paragraph, I would have unhooked that thing a long time ago.

My bone of contention was that I could not get my local channels (the network affiliates). I liked local news and almost all my favorite TV shows were on the networks....that I weren't getting from this damned service (with no cable or other viable solution.)

Called DISH to ask and complain and they said that it was the networks and not them or something to that. They weren't to blame. Well, BS, they are to blame because it was better and simpler for them to just not have local channels, for what unknown reason. Personally, I did not care, I want my local channels !

The woman suggested that I go buy some "rabbit ears" for the TV, which really annoyed me. But the damn antenna and of course it did not work at all. I did not have that house long anyway and I would have shot that uglyarse DISH thing off my roof with a 12 guage years ago.

[LUNCH]

Does CBS also want to tie people up in their chairs and force them to watch their channel which must be half commercials now? Anyhow this just further shows why advertising on American television must be regulated and controlled again. Watching live TV on most channels has become almost impossible.

[robyrob]

i think most people are fast-forwarding through the majority of commercials now anyways - I sometimes get so angry when I am forced to watch them I won't even watch the rest of the show (this usually happens when trying to watch ABC or NBC shows On Demand where they have disabled the fast forward), subtle product placement or well-designed ads are usually the best approach.

here in Ohio we are literally getting 3 or 4 political ads during EVERY SINGLE COMMERCIAL BREAK on any local channel from 5pm to 12pm - I don't care which side you are on (and I'm on neither), that's enough to drive anyone away - or insane.

they have completely oversaturated the tv viewing hour with ads - its just too much and the nets need to think of better ways to raise money, because people aren't watching those commercials anyways.

[Mr. Television]

Originally Posted by robyrob

i think most people are fast-forwarding through the majority of commercials now anyways - I sometimes get so angry when I am forced to watch them I won't even watch the rest of the show (this usually happens when trying to watch ABC or NBC shows On Demand where they have disabled the fast forward), subtle product placement or well-designed ads are usually the best approach.

here in Ohio we are literally getting 3 or 4 political ads during EVERY SINGLE COMMERCIAL BREAK on any local channel from 5pm to 12pm - I don't care which side you are on (and I'm on neither), that's enough to drive anyone away - or insane.

they have completely oversaturated the tv viewing hour with ads - its just too much and the nets need to think of better ways to raise money, because people aren't watching those commercials anyways.

When I watch anything On-Demand, I turn the voice right down when the commercials come on. I won't watch them. When I DVR a show I skim right pass the commercials and when I watch tv live, I go right out of the room.

[AKA]

The networks can play victim and place blame on advancing consumer-friendly technology all they want, but have they ever considered that they might actually be the problem? The increasing amount of ads invading our screens are sucking all the fun out of viewing non-time-shifted television.

I understand that commercial TV networks and stations are businesses that exist to make money, but they can find ways to survive and even flourish with fewer advertisers. A commercial break should be long enough for me to go to the bathroom and get a snack, not drive to McDonald's and order a value meal in the drive-thru.

Most viewers have no idea that program lengths have been eroding over the past forty years, but they're also not stupid: they know that commercial breaks are way too long and arduous, which necessitates time-shifting for enjoyable viewing. Some shows even have ten(!)-minute commercial breaks.

Not to sound like a broken record, but commercial time on the average scripted show is now at nine minutes per half-hour. That's nearly 1/3 of a show's time slot eaten away by corporate greed. Compare that to forty years ago, when there was only about four minutes of advertising per half-hour time slot. Until there are government-implemented regulations in place on broadcast television ad time, it's just going to get worse, and things like normal DVRs, the Hopper and torrents are going to become more necessary.

So Les, I really don't feel sorry for your or any other network. You guys did this to yourselves. You polluted television. We, the viewers, are just trying to clean it up.

Oh, and good luck trying to take away something from consumers that they absolutely love. Let me know how that works out for you.

[Regulus]

CBS and the other networks should look around and ask themselves WHY are people are going to the lengths they do to avoid commercials. As brad has mentioned one reason they do this is because of the INSANE number of Commercials tossed at viewers during a show. Pay-TV was supposed to be limited commercials (after all you were PAYING to recieve all these channels).

Another reason is the contents of those commercials. WHY in the name of heaven do advertisers believe they have to insult us in order to purchase their product? Some ads are seen more than ten times each hour. I have bad news for a certain Insurance Company. There are only two people on this planet who know you exist. One is in Cuba, the other is in North Korea. Even if they saw your pet lizard (or another of their minions) hawking your insurance they do not own anything you insure, so reaching them is a lost cost.

Then there are the ads for "Adult Products". Ads for Sex Pills, Woman's Hygiene Products, Contraceptives and the like are aired Morning, Noon and Night. Time and again I see them aired at times when CHILDREN ARE WATCHING, and even during Kids Shows themselves! Parents must CRINGE when a show is watching goes to a commercial break, as there is NO INDICATION of what's coming up next. You can have a Toy Commercial one minute, then an "ED Pill" or Feminine Hygiene Product the next. (I saw this happen last year during the MACYS Thanksgiving Parade, I guess it slipped NBC's mind that Children were watching). Is it any wonder some parents will not let their children watch a TV Show unless it's been recorded and all the commercials have been edited out of them? If you want more people to see your commercials you need to do two things:

1. Reduce the number back to pre-1995 levels (10-12 minutes of Commercials per Hour)

2. CLEAN UP YOUR ACT!!! Stop being obnoxious, and show ads for "Adult products" only between the hours of 11:00 PM to 5:00 AM

[CommonTater]

I sure hope we don't lose CBS, it's our only way to see our local news/weather plus my husband enjoys 3 shows on it. We have tried to use a top of the line antenna but simply can't pick up anything way out here in the boonies and there is no cable. This is the ONLY reason we are under contract with Dish.

[AKA]

You're safe; Mr. Moonves' bark is worse than his bite. CBS can't force its affiliates to withdraw their signals from pay television services unless doing so is a provision in new affiliation agreements the stations sign once their current contracts expire. Even then, most stations would sooner deaffiliate with CBS than be forced to remove themselves from DISH or any other provider.

At this point, the most CBS has the power to do is remove their owned-and-operated stations (14 CBS stations, nine CW stations, three independents and two MyNetworkTV affiliates) from DISH.

[Regulus]

I hope Dish wins their Court Case (I'm certain this will go all the way to the US Supreme Court). Then they can go for the Jugular and apply the Hopper to ALL the Channels. I'm certain the other Pay-TV Providers will follow suit, and maybe, just MAYBE Advertisers will get the message:

1. We don't like having obnoxious commercials shoved down our throats.

2. We don't like seeing age-inappropiate commercials played in front of our Children.

3. We don't want to see the same commercial played 8-10 times each hour.

4. We have better things to do than cope with 20+minutes of commercials per hour!

[Coffeecup]

How did the name Hopper come about? When I think of that word all I can think is a word meaning Toilet.

[AKA]

Regulus, you've repeatedly stated here on the forum that there are inappropriate ads during children's programming. I watch kids' TV with my son every day, and I've never seen it happen. Not once. Also, I've never heard anyone but you complain that this is a problem.

I'm not saying I doubt you; I'm suggesting that maybe the instance you witnessed was an error on the part of the channel you were watching, or the cable company.

[comedyfreak]

Originally Posted by Regulus

I hope Dish wins their Court Case (I'm certain this will go all the way to the US Supreme Court). Then they can go for the Jugular and apply the Hopper to ALL the Channels. I'm certain the other Pay-TV Providers will follow suit, and maybe, just MAYBE Advertisers will get the message:

1. We don't like having obnoxious commercials shoved down our throats.

2. We don't like seeing age-inappropiate commercials played in front of our Children.

3. We don't want to see the same commercial played 8-10 times each hour.

4. We have better things to do than cope with 20+minutes of commercials per hour!

AMEN!!! Well said!