CBS Television Network, a wing of CBS Corporation’s ( CBS - Analyst Report ) entertainment segment, recently announced that it has extended its affiliation agreement with Nexstar Broadcasting Group Inc. ( NXST - Snapshot Report ) by an additional 6 years for eight stations which the latter owns and operates.

Due to its exposure in publishing, radio and television broadcasting, and outdoor billboard businesses, CBS remains highly susceptible to the advertising market. Thus, the deal is in sync with the company’s strategy of adding diverse revenue streams to season itself against economic cycles.

CBS remains well positioned to drive revenue growth in the coming quarters through its strategic initiatives and operating efficiencies. Management remains optimistic and expects growth momentum to continue in fiscal 2012 based on reverse compensation from affiliates, strong demand for its content and streaming, retransmission consent and political advertising. Management expects reverse compensation to surpass $100 million in 2013.

The retransmission and affiliate fees generated from CBS’s cable and satellite partners for retransmitting broadcast programming have been another source of revenue. This is also evident from the company’s long-term programming deal with the cable operator, Comcast Corporation ( CMCSA - Analyst Report ) , whereby the latter will retransmit the signals of CBS television network, the Showtime Networks and CBS College Sports, across its array of platforms, to meet consumers’ growing demand for TV, Video on Demand and online content.

Earlier, in a similar move, CBS Corporation had announced the renewal of the content carriage agreement with Cablevision Systems Corporation ( CVC - Snapshot Report ) , a leading media and telecommunications company.

Moreover, CBS secured deals worth hundreds of millions, including a two-year deal with Netflix Inc ( NFLX - Analyst Report ) . Additionally, it signed a nonexclusive licensing agreement with Amazon. Com. Inc ( AMZN - Analyst Report ) . These measures back CBS’s strategy of generating revenue from shows that have already been broadcasted on TV years ago and facilitating the company in capitalizing on its content.

Further, CBS Corporation’s long-term agreements with the NFL, the NCAA, the SEC and the Grammy’s will generate a steady stream of positive cash flow for the company in the long run.

Currently, we have a long-term Outperform rating on the stock. Moreover, CBS Corp. holds a Zacks #2 Rank, which translates into a short-term Buy rating.