At CBS, a Recovery in Local Ad Sales and a Focus on Cost Controls Bolster Results

Reflecting a resurgence in advertising revenue, the CBS Corporation reported earnings of $150.1 million in its second quarter, up from $15.4 million in the period a year earlier.

Revenue climbed 11 percent, to $3.33 billion. Like other major media companies, CBS said it was capitalizing on the economic recovery. Its earnings are an indication that local advertisers are starting to spend more after severe cutbacks in 2008 and 2009, which hurt local TV and radio stations. CBS said advertising at its local broadcasting unit was up 17 percent from the period a year earlier. Over all, local broadcasting revenues rose to $678 million from $579 million a year earlier. Though the midterm elections are still months away, companies like CBS are already benefiting from an increase in political advertising.

CBS Chief Executive Leslie Moonves will now turn up the heat on its network affiliates to pay more to the network for its shows. He said CBS has struck some deals already and will make more down the road. "That is part of the new way of doing business," Moonves said. The push is part of the effort broadcast networks are making to better compete with cable. While cable channels get money from both subscribers and advertisers, broadcasters have traditionally only had an advertising revenue stream.