Several times during the CBS (NYSE: CBS) earnings call last week, CBS president and CEO Les Moonves made clear his intention to generate subscription and advertising revenue from any online video offerings the company pursues. As the company seeks to boost CBS cable property Showtime’s 8 percent revenue Q1 revenue gains, the cable net is planning to develop an online video service for subscribers, Bloomberg BusinessWeek reports, citing unidentified sources.
Word of Showtime’s web video service comes amid a number of plans for online streaming initiatives from cable operators like Comcast (NSDQ: CMCSA) and Time Warner (NYSE: TWX), and individual networks like HBO. So far, those efforts have been limited to a handful of shows. It’s not clear how extensive Showtime’s service would be. The cable net is said to be in negotiations with operators about developing the video effort.
For example, in February, rival cable net HBO teamed with Cinemax to offer HBO GO at no additional cost to customers on Verizon Communications (NYSE: VZ) Inc.