Netflix is an opportunity, not a threat says CBS boss Moonves

Netflix is not a threat to broadcast network CBS, according to its CEO and president Les Moonves.

He added that CBS is in talks with Netflix about making an original show for the streaming service.

“When you look at the Netflixs of the world and the Amazons of the world doing new production, we welcome that,” Moonves told analysts in the wake of fourth quarter results at CBS. “Until they are doing 22 hours a week of premium content, we don’t look at them as a competitor, but rather another place to put our content, whether it’s original or buying our libraries as they have [done].”

Speaking about the CBS network in the wake of strong overall results, Moonves said that a strong slate of returning shows would help keep programming costs down this year.

“We’re only going to be doing 16 pilots this year,” he said. “Some of our competitors are doing over 30 pilots. So in certain instances, I would state that our development expenses are less than those of some of our competitors by over US$100 million [€75 million].”

CBS reported full-year revenue of US$14.1 billion compared with US$13.6 billion. Operating profit increased to US$3 billion from US$2.6 billion across the same period.

Separately, a lawsuit accusing Netflix of misleading investors has been dismissed by a US court.

A group of shareholders in the US-listed streaming and delivery service had alleged it had hidden costs while insiders sold stock.

However, Reuters reports, a district judge in a San Francisco court ruled on February 12 that the shareholders had not demonstrated they had been misinformed about costs and accounting methods.

Specifically, the judge said company CEO Reed Hastings had not misinformed investors on a 2010 conference call following quarterly results in which he addressed subscriber acquisition and operating costs.

The shareholders have a month to amend the terms of their suit, Reuters reported.