The service is introducing its ad-free option almost a year after Hulu – backed by Comcast, Disney, Fox, and Time Warner – made a similar move. That being said, I doubt CBS will offer Discovery this way, or, if they do, it will be months after the show airs.
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The “back of the envelope math”, as Ianiello called it, is compelling to pay-TV operators, given that CBS has taken the most aggressive position among broadcasters in regards to negotiating retransmission licensing fees, as well as distribution on operator-backed OTT platforms like Sling TV.
CBS’s streaming service, which gives subscribers access to more than 7,500 episodes of current and classic shows as well as livestreams of local CBS stations, rolled out a new commercial-free option today, priced at $9.99 per month.
CBS’ cord-cutting All-Access service was bound to bulk up by the exclusive addition of Star Trek: Discovery, but fans rightly balked at notions that the service would still feature ads atop its monthly $5.99 pricetag. They’ll show up in about 10 percent of CBS’ episodes, and about 20 percent of its titles – generally its newer shows.
“The foundation of CBS All Access is not only about giving CBS fans access to more of the content they want, but also giving them more choice in how they watch their favorite CBS programming”, said Marc DeBevoise, President and Chief Operating Officer of CBS Interactive.
Customers can pay $9.99 a month to watch the on-demand content without commercials.
CBS All Access offers live-streaming of local CBS Television stations, available in more than 150 markets.
Another difference between CBS’s basic and premium streaming services is that only one can be sampled for free.
CBS All Access much anticipated new “Star Trek” original series, “Star Trek: Discovery”, as well as a spinoff of “The Good Wife” and a new digital edition of “Big Brother” will also be available ad-free.
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Speaking at Nomura’s 2016 Media, Telecom & Internet Conference two weeks ago, CBS COO Joseph Ianniello said the company is now making around $100 million in revenue off both its Showtime and CBS All Access SVOD platforms.
