CBS Corporation (NYSE: CBS) today announced a long-term exclusive licensing agreement for European entertainment company Sky Atlantic to be the exclusive home to Showtime programming in major European markets where Sky is present, including the UK, Ireland, Germany, Austria and Italy. As the largest and most expansive international deal to date for Showtime, it will boost premium Showtime program overseas and benefit CBS`s global expansion strategies. Also this is the first time for CBS to licenses its content portfolio to a single media company across multiple countries.
CBS believes that the deal will drive further profit from it`s Showtime program. Armando Nuñez, president and chief executive of CBS Global Distribution Group, said that “This deal shows how robust and profitable Showtime has become as a standalone product and revenue stream.”
Gary Davey, Managing Director of Sky, also spoke highly of the new agreement. He commented that: “This is one of the most important content deals Sky has ever agreed, cementing Sky's position as the market-leader in Europe for world-class drama.”
CBS is the leading supplier of programming around the world, covering more than 200 markets in more than 30 languages. According to a recent report by Jefferies, CBS may be in the best position of all the broadcast networks. Shares of CBS down about 20% since November, hit $42.18 yesterday and rebound to more than $45 today, still far below the target price gave by Jefferies ($62) and Thomson ($63). Besides, the company is in the course of stock repurchase process, expected to shrink it`s share base by 25% over next two years.