CBS has achieved its goal of 8 million streaming subscribers about two years earlier, the company announced in its fourth quarter 2018 earnings report on last Thursday.
Both CBS All Access and stand-alone Showtime added their share to hit mark of subscriber numbers, and now the company is aiming on 25 million domestic subscribers mark to be achieved by 2022, which was 16 million as set by the company previously.
Despite the progress made by the company with its streaming strategy, both earnings and revenue in the fourth-quarter fell short of analyst estimates.
Excluding-items, earnings of $1.50 per share missed the analysts’ estimate of $1.52 but was up 25 percent from a year ago quarter, similarly revenue of $4.02 billion also came below analysts’ expectations of $4.13 billion, but also 3 percent more than that in year earlier quarter.
CBS’s entertainment segment, its largest segment which includes the CBS network and television studios, in the fourth-quarter put its share by generating the revenue of $2.8 billion which though remained leveled with last year’s revenue but came above analysts’ expectations of $2.2 billion for the same.
Sales in company’s cable unit, which includes CBS Sports, Smithsonian Network and Showtime, although saw a rise of 8 percent fell short of Wall Street estimates. The unit made sales of $551 million against estimates of $601 million.
In fourth-quarter, CBS came on expending more on contents, which help it to increase its subscriber base, but that hurt the earning in both of its segments which missed the analysts’ estimates. CBS’s plans to grow subscribers in a market when dozens of streaming platforms are already available to the consumer will be challenging, and efforts towards the goal would be doubled as WarnerMedia, NBS and AT&T are intending to launch new services in the next year, but CBS seems willing to sacrifice some of its near-term profitability and can spend more on the contents to reach the goals.