Bold Play by CBS Fortifies Broadcasters

By BILL CARTER, NYT

Leslie Moonves, the longtime chief executive of CBS, has heard the jokes about CBS being old and out of step because of the age of its audience and because it does not have enormous assets in the cable network world.

But in one area, CBS and Mr. Moonves have led to a shake-up in the broadcast world that could be labeled revolutionary: the issue of compensation for retransmission rights. Before almost anyone else in the business, Mr. Moonves effectively pushed for distributors to pay fees to the broadcast channels just as they do to cable networks.

The result has been a windfall for all the broadcasters and a crucial lifeline as audiences continue to shrink.

“One of the things people misjudged about CBS was the growth potential,” Mr. Moonves said in an interview. “We were considered a low-growth company: how are they going to grow this business? This was one of our keys. We were going to get paid for retransmission, and that’s how we were going to grow.”

(More here.)