Back in 2006 (two years before the recession struck in the UK and elsewhere) CBS outdoor signed an eight and a half year deal with London Underground to instal digital screens in flagship Tube stations like Oxford Circus.
In return CBS guaranteed London Underground operating company Transport for London (TFL) about £70m a year from its ad takings meaning that it had to sell considerably more than this to pay for the installation of the expensive screens and earn a profit.
Unfortunately it has failed to do so and is threatening to end its contract early in March 2012, three months before the start of the London Olympics when it (and TFL) should be making oodles of money. TFL is fighting the proposal and the two parties are also rowing about who owns the installations, CBS says it does and TFL the opposite.
Friday, 26 August 2011
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Posted by Jon Barnard at 11:46