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CBS Cashing In March 6, 2007

Posted by collage9 in advertising, allances, Internet, media, monopoly.
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We all know about the excitement that March Madness brings every year, especially with the recent success of our basketball team in the tournament.  I know I’ll be watching intently as I do every year.  But perhaps this biggest winner in all of the excitement is CBS, which has the exclusive rights to televise every game in the tournament.  This year TV ad spending is expected to surpass $500 million, which would be a record high.  Everyone knows how big of a deal advertising is during major sporting events, and CBS is definitely cashing in. They also aired this years Super Bowl, which as we all know probably has the most sought after advertising spots on television.

Not only is CBS making money on the television advertising, but they are also beginning to air games on the internet.  Starting last year CBS decided to make available all games over the internet for free and the idea was a hit.  Previously, they had charged $19.95 for the service, but after deciding to air them for free the number of users watching sky rocketed.  The important thing is that the internet broadcasted games will feature different commercials than the television broadcasts.  Not only will companies be vying for the rights to television spots, but now also on the internet as well.  In addition to the internet broadcasts, CBS has also made a deal with DirectTV to create a Mega March Madness Package for $69 that will air every tournament game.  Basically, the company is making a killing off of the yearly tournament and are really the ones driving their competitors mad.

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Comments»

1. Jordi - March 6, 2007

Steve-

Add categories!

BTW, Les Moonves, CEO of CBS is a Bucknell Alum.

2. Charley S - March 19, 2007

I am wondering how much money CBS had to shell out originally to get both the super bowl and all of march madness. This may look good from the outside but they may not be making as much of a killing as it appears. Incidentally, the other networks also have major programs that draw in advertising. Fox has American Idol which last week took the top 3 spots as the highest rated tv programs because it was on 3 different nights. Internet TV programming will probably be the next step in innovation, but this will face big obstacles from entrenched broadcast TV stations.


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