CBS (NYSE:CBS) is about to release earnings. Ponder this Bear Case Scenario as you listen to management comments:
Firms like Netflix are currently paying top dollar for excellent libraries. The libraries will soon be exhausted. The gravy train will soon be over.
Television is a high fixed cost business. Small drops in advertising hurt the bottom line very quickly.
Disruption in the pay-TV ecosystem would hurt channel owners like CBS.
George Gutowski writes from a caveat emptor perspective.