Should You Take a Chance With CBS?
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CBS operates as a mass media company in the United States and abroad. The company operates in the entertainment, cable networks, publishing, local broadcasting, and outdoor segments. Consumers seek entertainment of various forms and through an array of platforms at an increasing rate, and through its segments, CBS is able to fulfill consumer needs as it continues to release content that excites the masses. Consumers around the world always seek varied forms of entertainment, and CBS is dedicated to delivering that media, which can only lead to growth and rising profits well into the future.
CBS Outdoor is snapping up billboards in New York’s Times Square and Los Angeles’s Sunset Strip as part of a move to capture more of the steadily growing outdoor advertising market. The company, which spun off from broadcaster CBS just four months ago, will pay $690m in cash to Van Wagner for the U.S.’s largest private portfolio of outdoor advertising assets. CBS Outdoor will get 1,100 billboards in 11 top markets, including Las Vegas, San Francisco and Miami, which generated $206m in revenue last year. Privately held Van Wagner will focus on its remaining sports, blimp and aerial units. The deal will help CBS Outdoor, which has about 20 per cent of the U.S. outdoor market, attract more of the deep-pocketed national advertisers who want to put their brands in front of consumers in the biggest cities. Billboards, one of the oldest forms of advertising, are still tracking strong growth in the U.S. as traditional billboards are converted to digital displays and people spend more time out of their homes. “Our audience keeps growing because the mobile connected consumer is spending more time out of the home and we can deliver the eyeballs advertisers want to reach,” said Jeremy Male, CBS Outdoor chief executive. Outdoor advertising spending in the US is projected to grow 3.6 per cent to $7.21bn this year, according to eMarketer. That is faster than the 3.3 per cent growth rate for television ads.