The News Review:
- CBS posts 52% profit drop slashes dividend 81%
- CBS feels the advertising pinch
- FTC revises regulatory principles for behavioral advertising
- Belt-tightening in media squeezes more workers
CBS posts 52% profit drop slashes dividend 81%
Los Angeles Times CA -
But he predicted that results would improve in the second half of the year. The media giant which is highly dependent on advertising sales swings to a loss for the year. Analysts hadn’t expected such a dramatic dividend cut but several say the move makes sense. By Meg James February 19 2009Seeking to preserve cash amid the troubled economy and slowdown in advertising sales CBS Corp. on Wednesday slashed its dividend payment to investors and reported a 52% drop in net income for the fourth quarter. Like other media companies that own local TV stations CBS has been hit hard by the recession which has crippled two of its biggest buyers of commercial time — carmakers and dealerships.
CBS feels the advertising pinch
MarketWatch -
It also announced that it was slashing its quarterly dividend by 81% due to the harsh recession. CBS said it earned $136. 1 million or 20 cents a share against a profit of $286. 2 million or 42 cents in the fourth quarter of 2007.
FTC revises regulatory principles for behavioral advertising
DM News NY -
The report contains updates to principles which were first defined by the FTC in December 2007. The updated report summarizes and responds to the main issues raised by the behavioral targeting industry through public comment. ?The key issue behind the report is the concern that online advertisers best protect consumer privacy while collecting information about their online activities? said Pedar Magee senior staff attorney at the FTC. The updates to the report include three main changes.
Belt-tightening in media squeezes more workers
The Associated Press -
had about 14600 full-time employees. Court documents also indicated the company’s payroll expenses ranged from about $15 million to $20 million every two weeks which translates to $390 million to $520 million annually. Major media companies are pinching pennies because their main source of revenue — advertising — has been rapidly drying up. The downturn for newspapers began several years ago as Web sites like Craigslist offered free advertising alternatives and Internet search leader Google Inc. developed a more effective marketing vehicle. The worst recession since the early 1980s has prompted advertisers to curtail spending even further.
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