Viacom

Posted on October 16, 2016 by eamccann

Beth McCann, Divya Yeleswarapu, Hugh Sims

http://hoitalent.com/positions/content-operator/

Viacom Logo [1]

VIACOM, INC.

1515 Broadway, New York, NY 10036

(212) 258-6000

viacom.com

ABOUT

Viacom Networks [3]

American media conglomerate Viacom, Inc. is a media company home to television, cinema, online and mobile networks and brands in over 160 countries and territories, reaching approximately 700 million subscribers around the globe.

Their leading brands include MTV, VH1, CMT, BET, Nickelodeon and its various channels, Comedy Central, Spike, and Paramount Channel. Viacom owns Paramount Pictures as well, which is a major producer and distributor for movies [2].

HISTORY

Viacom and CBS Logos [21]

Viacom got its start in 1971. Viacom acquired its various networks over the course of 30 years, purchasing various channels including MTV, Nickelodeon, and BET. In the 1990s they entered a merger with CBS [4]. However, the two separated into two companies in 2005, now known as CBS Corporation and today’s Viacom Inc. The split was made to separate radio and television from the rest of the company [21]. Today, Viacom continues to create new shows for their various networks and launch new ideas.

CURRENT AND FUTURE MEDIA

Recently, Viacom has been concerned with attracting younger viewers from children’s ages to young adults aged 18-25. They are trying to stay relevant in the developing world of streaming content but still trying to pull in viewers for live shows.

Rocko’s Modern Life Poster [5]

On Nickelodeon, Viacom is attempting to draw in new and old audiences alike with programming reminiscent of shows on in the 1990s. Viacom announced in August they would have an hour long special of the classic 90s Nickelodeon cartoon Rocko’s Modern Life [5].

In October they announced there would be a special of Double Dare, a game show from the 1980s and 1990s [6]. They later said they would be releasing Legends of the Hidden Temple: The Movie to come out based off of the popular 1990s Nickelodeon show [7]. They are attempting to appeal to a younger generation who has never seen this content as well as nostalgic young adults.

Legends of the Hidden Temple: The Movie-Official Trailer [8]

DirectTV Now Logo [15]

Viacom is also launching some of its networks on DirecTV Now, AT&T’s streaming service. They want to deliver more content to fans in more places and allow them to stream content at their own convenience [9].

However, Viacom is also developing tactics to aid in the live viewing experience for consumers. Viacom Labs created what they called a “breakthrough television format” that they hope to launch in 2017 on MTV Music. They have created a TV format that pulls livestreams of fans in a real time feed during the scheduled television show [10]. It creates an interactive and unique experience for fans and will help to motivate people to watch shows in real time rather than stream them days later.

MANAGEMENT

Philippe Dauman-Former CEO and President [11]

Within the last few months, Viacom has gone through some major changes in management. As of August 20^th, Chief Executive Philippe Dauman resigned which ended the legal fight between members of the Viacom board and Redstone’s National Amusements Inc. This is a privately held company that holds 80% of the voting shares of Viacom and CBS Corp. Under the agreement, Dauman received about $72 million and was replaced by previous COO Thomas Dooley who served as interim CEO until the end of Viacom’s fiscal year [16].

Robert Bakish-New CEO of Viacom [12]

Recently, Viacom declared that Robert Bakish will be acting chief executive replacing Tom Dooley. Bakish, a 19-year company veteran who headed the company’s international media networks, has also been named President and CEO of a newly created group called Viacom Global Entertainment Group [17]. The group will run Viacom’s most popular networks including MTV, Comedy Central, VH1, Spike and others [18].

FUTURE OF THE COMPANY

whats-next-for-the-tv-industry-find-out-from-cbs-ceo-les-moonves-at-ignition-2015

Leslie Moonves- CEO of CBS [13]

In terms of Viacom’s future, there is a lot leaning on this merger with CBS. According to The Hollywood Reporter the Viacom special committee who is working exclusively on the merger hopes to wrap everything up by the year’s end [19]. It is planned that CBS Corp. President and CEO Leslie Moonves would eventually oversee the combined entity. However, the company is determined to move forward whether as a stand-alone company or in a potential combination with CBS. Newest interim CEO Bob Bakish has a lot of goals and wants to push the company forward in terms of speed, sharing, and a global outlook. He is planning to invest in new content and to deliver significant audiences on genres other than high-dollar programming. Bakish said, “We’re not going to stand still while the CBS merger is being evaluated. I believe there’s a lot of work we can do in the near-term to make us stronger, no matter what the next chapter of Viacom is. It’s time to move forward [20].”

FINANCES

The first day of trading since the split between Viacom and CBS Corporation showed a 2.8 percent increase in the shares of CBS Corp. to $26.20, and a 1.1 percent increase in the shares of Viacom, to $41.59 [21]. In the current year 2016, they averaged out their most recent 50-day span at $41.47 per share. As of November 2016, Viacom has a 6.1% market share and is among the top 5 competitors in the cable and entertainment industry [24]. Due to the ongoing internal management battle, Viacom’s stock performance has gone down with -8.06% in the last 90 days, compared to the industry average of -0.22%. However, in comparison to CBS Corporation, Walt Disney Company, and Comcast Corporation, Viacom’s recent one day and five day stock performance, 3.58% and 1.4% respectively, has exceeded them all [22].

Viacom 52 Week Share Price [14]

This major media company has had declining performance over the last 11 years, however, it has never made negative profits and instead managed to stay afloat, but the drop in total revenue has been alarming. Over the last year their 52 Week High was $47.17 and their 52 Week Low was $38.61 [23].

Their total revenue has capped off at 13.05 B which is not where they want to be, considering that their profit margin is 15.85% and the typical average for a media company is usually around 23% [22]. In 2012, revenue increased about 16.7% because NBC Universal merged with Comcast Corporation, which provided Viacom with unforeseen and extra production materials, allowing mega growth through 2013 and the year-end stock price to cap off at $87.34 [23].

The revenue has seen a sharp decrease over the last five years by dropping 3.74% and ending the year 2015 with a drop of 44.36% to a monetary outcome of $6.18B as their gross income. It was the lowest value over the defined period. That left them with a free financing cash flow of $2.17B, which was a 12.75% decrease from the previous year 2014. However, the little glimmer of hope that Viacom took from its bleak financials into the current year 2016 is that the net operating cash flow has only been seeing growth over the last five years, and capped at a 17.43% increase coming in [22][24]. Therefore, this media conglomerate has cash to grow and operate its company through the many bumps in the reel.

OVERVIEW

Despite turmoil within the company and stress from the possible CBS, Viacom continues to move forward by creating new content for their networks and trying to reach as large an audience as possible.

SOURCES

[1] Viacom-HoiTalent. Retrieved November 25, 2016. http://hoitalent.com/company/viacom/

[2] About Viacom. Retrieved November 14, 2016. http://www.viacom.com/about/pages/default.aspx

[3] Dampier, Phillip. April 1, 2014. Stop the Cap! Viacom Demands 100% Rate Increases for Hundreds of Small Cable Systems, Military Bases. Retrieved November 14, 2016. http://stopthecap.com/2014/04/01/viacom-demands-100-rate-increases-for-hundreds-of-small-cable-systems-military-bases/

[4] Viacom Timeline. Retrieved November 14, 2016. http://www.viacom.com/about/pages/history.aspx

[5] Acquire Media. August 11, 2016. Nickelodeon Brings Back Rocko’s Modern Life for Brand-New, Original One-Hour TV Special Based on the Classic ‘90s Hit Animated Series. Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=984177

[6] Acquire Media. October 6, 2016. Nickelodeon Announces Brand-New Double Dare Special Commemorating Iconic Game Show’s 30th Anniversary Year, Wednesday, Nov. 23, at 9 p.m. (ET/PT). Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=992484

[7] Acquire Media. October 6, 2016. Nickelodeon’s Original TV Movie Event, Legends of the Hidden Temple, Bows Saturday, Nov. 26, at 8 P.M. (ET/PT). Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=992490

[8] July 23, 2016. Legends of the Hidden Temple: The Movie l First Official Trailer I Nick – YouTube. Retrieved November 25, 2016. https://www.youtube.com/watch?v=U7eHPW7n7Ko

[9] Acquire Media. October 4, 2016. Viacom Networks to Launch on DIRECTV NOW. Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=992023

[10] Acquire Media. October 24, 2016. First Ever Livestream-to-TV Format Pioneered by Viacom Labs, Greenlit for On-Air Series. Retrieved November 14, 2016. http://ir.viacom.com/releasedetail.cfm?ReleaseID=995056

[11] January 15, 2015. Viacom Extends Employment Agreement with President and Chief Executive Officer Philippe Dauman Through 2018. Retrieved November 26, 2016. http://www.businesswire.com/news/home/20150115006254/en/Viacom-Extends-Employment-Agreement-President-Chief-Executive

[12] Senior Management. Retrieved November 26, 2016. http://www.viacom.com/about/pages/seniormanagement.aspx

[13] Salem, Yasir. November 19, 2015. What’s next for the TV industry? Find out from CBS CEO Les Moonves at IGNITION 2015. Retrieved November 24, 2016. http://www.businessinsider.com/cbs-ceo-les-moonves-to-speak-at-ignition-2015-7

[14] Viacom, Inc. Retrieved November 26, 2016. https://www.google.com/finance?cid=703770

[15] DirectTV Now Logo. Retrieved November 16, 2016. http://www.multichannel.com/sites/default/files/public/styles/blog_content/public/DirecTV%20Now%20400×300.jpg?itok=Mb9HjA3j

[16] Reuters. August 20, 2016. Viacom Says CEO Dauman to Resign Post Immediately; Dooley Steps In. Retrieved November 12, 2016. http://fortune.com/2016/08/20/viacom-ceo-to-resign-immediately/

[17] Reuters. October 31, 2016. Viacom names Bob Bakish acting CEO. Retrieved November 14, 2016. http://fortune.com/2016/10/31/viacom-has-a-new-acting-ceo/

[18] Yu, Roger. November 1, 2016. Viacom names Bakish as acting CEO. Retrieved November 14, 2016. http://www.usatoday.com/story/money/2016/10/31/viacom-names-bakish-acting-ceo/93083054/

[19] Masters, Kim. November 10, 2016. CBS-Viacom Merger Intrigue as Les Moonves Pushes for Clear Control. Retrieved November 14, 2016. http://www.hollywoodreporter.com/news/cbs-viacom-merger-intrigue-as-les-moonves-pushes-clear-control-945477

[20] Lieberman, David. November 9, 2016. Viacom’s Bob Bakish Vows To Accelerate Growth As It Weighs CBS Merger. Retrieved November 16, 2016. http://deadline.com/2016/11/viacom-bob-bakish-accelerate-growth-plans-consider-cbs-merger-1201851548/

[21] Alfano, Sean. January 3, 2006. CBS, Viacom Formally Split. Retrieved November 16, 2016. http://www.cbsnews.com/news/cbs-viacom-formally-split/

[22] List of VIA’s Competitors and Stock Performance. Retrieved November 16, 2016. http://csimarket.com/stocks/competitionNO2.php?code=VIA

[23] Viacom Inc. – Stock Performance. Retrieved November 16, 2016. http://ir.viacom.com/stockquote.cfm

[24] IBISWorld US – Industry, Company and Business Research Reports and Information. Retrieved November 16, 2016. http://clients1.ibisworld.com/reports/us/industry/majorcompanies.aspx?entid=1245

Viacom

Posted on October 16, 2016 by Barbara

Ryan Doody, Georgina Macdonald

Viacom’s Holdings

Viacom, Inc. (VIAB) is an American media conglomerate with particular interests in cinema with Paramount Pictures, America’s oldest film studio; and cable television as the sixth largest cable ownership company globally, in order of revenue. Viacom houses media networks that reach approximately 700 million global subscribers with leading channels including MTV, VH1, BET, COMEDY CENTRAL and Nickelodeon.

Click here to see a list of all Viacom’s holdings

National Amusements

National Amusements, Inc. have a controlling interest of the media company. National Amusements is Viacom founder and billionaire Sumner Redstone’s holding company. This company holds a majority stake in both Viacom and its sister company, CBS Corp. Viacom was originally founded by media magna Sumner M. Redstone in 1971 and then reestablished in 2005 after splitting its original format into two publicly traded companies; Viacom and CBS Corporation. Sumner Redstone then became CEO of the newly defined Viacom, Inc. until February 2016. At the age of 92, Redstone resigned from his chairmanships at both CBS and Viacom after a court-ordered psychiatric examination.

The Redstone’s Legal Battles

This court-ordered examination by a geriatric psychiatrist is just one noteworthy outcome that has come out of a continuous stream of legal battles within and around the famously fractious Redstone family. The specific inquiry into the 92 year old’s health came after the newly-dismissed Viacom CEO Philippe Dauman sued Redstone, claiming that his dismissal was proof that Sumner was under the control of his daughter, Shari Redstone. At the time there were many rumors that Sumner Redstone’s failing health had allowed his daughter to run his company for him. These rumors were further supported by his supposed successor being someone close to Shari. Dauman and the five other board members dismissed by Redstone this year have sued to prevent their ouster. Their strategy was to prove that Shari took advantage of her father’s mental incapacity in order to seize control of the billion dollar companies. Their ‘legal drama’ and public familial feuding has been highly publicized over the last few years presenting the company as volatile, unstable and, thus, detrimentally impacted their professional image.

Management

Sumner M. Redstone, Founder & Executive Chairman

Sumner Redstone, Majority Shareholder of Viacom and Nat’l Amusements ; Chairman Emeritus

Shari E. Redstone, Non – Executive Vice Chair of Board of Trustees of Viacom

Acting CEO of Viacom Inc.; President and CEO of Viacom G.E.O.

Former CEO and President of Viacom Inc.

The Country’s Oldest Movie Studio

Paramount Pictures Corporation has experienced its worst fiscal year in Brad Grey’s twelve years as Chairman and CEO of the corporation. During his comments about their dismal year, Grey painted a ‘rosier picture’ for the future of Paramount Pictures. He hinted that with the dismissal of Dauman, the era of cost-cutting and streamlined content was over. Moreover, he insinuated that this would further allow a move ahead with more inventive content by acquiring more sub companies to provide blockbuster results; as in the spirit of Disney’s buying of companies such as Marvel, Pixar and Lucasfilm which has set up its slates for the next decade

The development of content is certainly the main issue with Paramount Pictures. It is reported that since the departures of Marvel, DreamWorks Animation and DreamWorks SKG, the corporation has been floundering for lucrative content for development. Grey also commented on repairing Paramount’s image within the film industry. They are seen as ‘penny-pincher’ with a poor business affairs process; a destabilized management team within their production division; and an inability to successfully launch branded sequels (as seen this year with Star Trek Beyond and Teenage Mutant Ninja Turtles).

“Recently, we’ve missed more than we should have.’ Grey said to Deadline magazine; but he went on to say that Paramount has ‘a very strong, diverse slate ahead.’ A true statement, according to critics; their roster includes a huge range of films from Oscar contenders like Scorsese’s Silence to the next chapter of the billion dollar franchise; Transformers: The Last Knight (Click here for news and spoilers).

CBS Merger

Over the past year, Viacom has flirted with the idea of re-merging with CBS, and as of November 2016 it seems inevitable. Shari Redstone has said in an interview that she “think[s] it makes sense at this point in time to explore whether it’s in the interest of both companies to merge again” (13). Viacom’s poor cable performance has put it at a weak position when it will eventually negotiate the merger with CBS. While it is uncertain who will lead the company, the most likely contender is Les Moonves, CBS’s current CEO (4).

Cable Performance

Viacom’s cable holdings have not seen nearly as much success in the past year as they have had in the past. As of November 20, 2016, there are no Viacom channels in the top 5 cable networks during Primetime. In fact, in the list of the 15 top channels on cable based on total day viewership, Viacom channels – Nickelodeon and Nick at Night – only appear twice (10).

*Highlighted channels are owned by Viacom

Source: medialifemagazine.com

The two most notable absentees from this list are MTV and Comedy Central – two of Viacom’s major channels. Comedy Central has seen a drop in viewership mainly due to the end of two of its most popular shows – The Daily Show with Jon Stewart and The Colbert Report. After Jon Stewart’s departure, Comedy Central’s viewership declined a painful 37% (11); the channel has yet to see a comparable replacement.

The new era of Comedy Central programming has yet to see the same success as its predecessors. The Daily Show with Trevor Noah’s average rating of 0.32 is about half that of Stewart’s. The Daily Show’s lack of success represents the channels struggle as a whole. While Trevor Noah may be likeable, In the words of Hayley C. Cuccinello of Forbes Magazine: “His dimples and adorable South African accent just aren’t cutting it” (11)

MTV has described the channel’s cable ratings plunge as a “transitional era” where it’s largely youthful demographic access the channel’s content primarily OTT through the MTV app. Its TV ratings have fell 29% between 2014 and 2015, yet MTV can still boast over 49 million Facebook likes, which is significantly higher than channels like Fox News that have higher TV ratings. While it may have digital success, MTV as a cable network will have to seriously innovate its content if it wants to stay relevant (12).

Argentina’s Largest TV Station

Management within Viacom has been a revolving door in recent months. Following the controversial departures of Dauman in August and Tom Dooley in September of this year, Robert Bakish became the company’s third CEO in three months. Bakish is a Viacom veteran; he became the President and CEO of Viacom International Media Networks in 2007 after worked for the company since 1997. (16)

Bakish’s move has already influenced many of Viacom’s strategies moving forward. He claims his desire is to strengthen the company both domestically and internationally; expected due to his background in global media networks. Bakish’s promotion moves complementarily with Viacom’s acquisition of one of Argentina’s main free-to-air channels, Telefe. The massive deal was announced in November this year, with Viacom pledging $345 million for the channel. (15) This certainly was a surprise purchase due to it’s well-known financial instability. This acquisition strengthens Viacom’s already prominent standing in South America; Telefe reaches 95% of all households in the country and reportedly has attracted 33% share of viewership year-to-date in 2016. However, the fiscal impact of a $345 million buy will be interesting to watch in a company with a reported $12 billion debt. (18)

Bibliography

James, Meg. November 8, 2016. LA Times. Sony Vue Dumps Comedy Central, Nickelodeon, MTV and Other Viacom Channels. Retrieved November 28, 2016. http://www.latimes.com/business/hollywood/la-fi-ct-sony-vue-viacom-20161108-story.html
James, Meg. July 8, 2016. LA Times. Why Viacom Chief Philippe Dauman is fighting his longtime boss, Sumner Redstone. Retrieved November 26th, 2016. http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-why-philippe-dauman-fights-sumner-redstone-20160706-snap-story.html
Cohan, William D. June 16, 2016. Vanity Fair. “It’s a Coup D’état Without a Doubt”: Is Shari Redstone Making Power Moves at Viacom? Retrieved November 26th, 2016. http://www.vanityfair.com/news/2016/06/shari-redstone-power-moves-viacom
Fox, Emily Jane. November 2, 2016. Vanity Fair. Finally, There is a Winner in the Redstone Family Drama. Retrieved November 3rd, 2016. http://www.vanityfair.com/news/2016/11/bob-bakish-viacom-compensation
Board of Directors. Retrieved November 24, 2016. http://www.viacom.com/about/pages/boardofdirectors.aspx#
Paramount Pictures. Retrieved November 1, 2016. http://www.paramount.com
Executives: Brad Grey. Retrieved November 1, 2016. http://www.paramount.com/inside-studio/studio/executives/meet-executives/brad-grey
Fleming Jr, Mike and Cieply, Michael. November 3, 2016. Deadline. Brad Grey Fights For Paramount’s Future Part Two. Retrieved November 4, 2016. http://deadline.com/2016/11/brad-grey-paramount-pictures-future-sumner-redstone-shari-redstone-1201847371/
Fleming Jr, Mike and Finke, Niki. October 8, 2010. Deadline. Paramount to End Relationship with Marvel in 2012. Retrieved November 4, 2016. http://deadline.com/2010/10/disney-paramount-marvel-restructure-marketing-distruibution-deal-76534/
Media By The Numbers: This Week’s Cable Ratings. November 23, 2016. Retrieved 28, 2016. http://www.medialifemagazine.com/this-weeks-cable-ratings/
Cuccinello, Hayley C. April 28, 2016. Forbes. Trevor Noah’s ‘Daily Show’ Reaches 100th Episode, But Noah Is Still Struggling. Retrieved November 28, 2016. http://www.forbes.com/sites/hayleycuccinello/2016/04/28/trevor-noahs-daily-show-reaches-100th-episode-but-noah-is-still-struggling/#67c25575820e
Zara, Christopher. April 15, 2015. International Business Times. MTV Ratings Decline Raises Relevance Questions As Young People Cut Cable Cord For Devices. Retrieved November 28, 2016. http://www.ibtimes.com/mtv-ratings-decline-raises-relevance-questions-young-people-cut-cable-cord-devices-1881468
Walters, Natalie. November 23, 2016. TheStreet. Viacom (VIAB) Merging With CBS Again ‘Might Make Sense,’ Shari Redstone Says. Retrieved November 29, 2016. https://www.thestreet.com/story/13890410/1/viacom-viab-merging-with-cbs-again-might-make-sense-shari-redstone-says.html
Fox, Emily Jane. October 19, 2016. The Hive. Will Les Moonves Soon Run Viacom, Too? Retrieved November 29, 2016. http://www.vanityfair.com/news/2016/10/les-moonves-cbs-viacom-merger
Steele, Anne. November 15, 2016. Wall Street Journal. Viacom to Buy Argentina’s Telefe for $345 Million. Retrieved November 29, 2016. http://www.wsj.com/articles/viacom-to-buy-argentinas-telefe-for-345-million-1479231471
James, Meg. October 31, 2016. LA Times. Viacom Names Robert Bakish as Acting CEO. Retrieved November 28, 2016. http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-viacom-ceo-20161031-story.html
James, Meg. November 9, 2016. LA Times. Paramount Quarterly Profit Plummets; Paramount Loses $137 million. Retrieved November 27, 2016. http://www.latimes.com/business/hollywood/la-fi-ct-viacom-earnings-paramount-20161108-story.html
Orr, Emma and Shaw, Lucas. August 24, 2016. Bloomberg. Viacom Said to Rethink Resistance to $12 Billion Downgrade. Retrieved November 27, 2016. https://www.bloomberg.com/news/articles/2016-08-24/viacom-said-to-rethink-resistance-to-12-billion-debt-downgrade

Viacom

Posted on September 30, 2015 by Rachel Roth

Rachel Roth

Viacom Logo [19]

Viacom

1515 Broadway – 52nd Floor

New York, NY 10036

(212) 846-6700

http://www.viacom.com/

Background

Viacom is an American entertainment company that holds some of the world’s most dominant brands. It connects with its following through television, motion picture and online and mobile platforms. Viacom has 23 major and minor cable television networks and airs in more than 160 countries. Viacom’s most well-known and influential brands include MTV, VH1, CMT, Logo, BET, Nickelodeon, Nick Jr., TVLand, Spike and Comedy Central. Paramount Pictures and Viacom have connected to produce and distribute films together globally. [2] [4]

Sumner Redstone, Executive Chairman of the Board and Founder, is currently in declining health, but refuses to retire despite his questionable state. Shari Redstone is Viacom’s Non-Executive Vice Chair of the Board. President and Chief Executive Officer Philippe Dauman, Chief Operating Officer Thomas Dooley and Executive Vice President and Chief Financial Officer Wade Davis are also influential assets to this company. [3] [4]

Executive Chairman of the Board and Founder, Sumner Redstone [20]

Non-Executive Vice Chairman of the Board, Shari Redstone [21]

President and Chief Executive Officer, Philippe Dauman [22]

Chief Operating Officer, Thomas Dooley [23]

Executive Vice President and Chief Financial Officer, Wade Davis [24]

History

June 4th 1971- Viacom broke away from Columbia Broadcasting System Inc. (CBS) and became a public company. [1]

1985- Viacom acquired more than half of MTV Networks. [1]

By 1986- Viacom fully owned MTV Networks. This was an enormous feat for Viacom, as MTV has become one of the company’s leading brands today. [1]

MTV Logo [29]

1994- Viacom had a $9.9 billion merger with Paramount Communications Inc. to produce and distribute films. [1]

1999- Viacom began trading on the New York Stock Exchange as a publicly traded company. [1]

2000- $39.8 billion merger with CBS Corporation. [1]

2006- Paramount Pictures acquires DreamWorks L.L.C. [1]

2010- MTV Networks and Warner Music Group (WMG) formed a partnership, creating the music dynasty that most people think of today when they refer to MTV. [1]

Warner Music Group Logo [30]

2011- Viacom formed Viacom International Media Networks (VIMN), bringing MTV Networks International, BET International and Paramount television channels under one entertainment umbrella. Today, Viacom’s largest competitors include The Walt Disney Company, Time Warner Inc. and NBC Universal Media L.L.C. [1] [5]

Recent News

Hulu

Hulu Logo [25]

In October 2015, Viacom struck a deal with video on demand streaming service, Hulu, to exclusively stream Viacom shows. Hulu will be the only place that fans can view Comedy Central and MTV content such as “Inside Amy Schumer,” “Broad City,” “Drunk History,” “Key & Peele,” “Faking It” and “Finding Carter.” Since the initial deal in October, Viacom has since extended the contract and is planning on adding more exclusive video on demand content. This should be a mutually beneficial move for both Viacom and Hulu, because Viacom will be able to stream their shows online as the viewership of cable television is declining, and Hulu will have exclusive access to Viacom programming. [6]

Cablevision

Cablevision Logo [26]

In 2012, Cablevision claimed that Viacom made the company carry 14 lesser-watched channels because they were already carrying MTV, Comedy Central, BET and Nickelodeon, also known as Viacom’s “core channels.” Viacom referred to this as a “complete sham,” therefore leading to an antitrust litigation. On October 16th 2015, Cablevision and Viacom came to a settlement on the carriage agreement, and Viacom said in a press release that the companies “are simultaneously entering into mutually beneficial business arrangements.” This should benefit both companies because Viacom will be able to air its channels again through Cablevision and Cablevision will be able to provide more channels to its subscribers. [8] [11]

Nickelodeon

Nickelodeon Logo [27]

On November 16th 2015, Nickelodeon announced the premiere of their new docu-series “The Halo Effect,” which will spotlight teens and young adults who are helping and leading others their own age and even older. The 30-minute episodes of “The Halo Effect” will premiere in January of 2016 and will depict young, motivated individuals eager to make a positive change in the world around them. [13]

Additionally, Nickelodeon hosted its annual HALO Awards on November 29th 2015, where they honor teens that are making a difference in their communities and put on a concert. Artists such as Fifth Harmony, Joe Jonas, Tori Kelly and Flo Rida performed as Nick Cannon hosted. [7] [12]

BET (Black Entertainment Television)

BET Logo [28]

In an attempt to reach viewers through other platforms than just cable television, BET, Black Entertainment Television, announced on November 2nd, 2015 that they will launch an emotional documentary, “Holler If You Hear Me: Black and Gay in the Church,” exclusively on the BET NOW app. The documentary will explore homophobia in black circles and will show the way that the church treats members of the LGBT community. BET has prided itself on shedding light on issues that matter most to the African American community; so diving into the black LGBT world is definitely a step that the company is taking to bring light to a relevant matter. [14]

BET launched their 5th annual breast cancer awareness campaign in October 2015, titled BET GOES PINK: “Where Do You Do It?” This campaign encourages BET females to join the conversation and share where they perform breast self-exams. BET GOES PINK was designed to educate the black community on the dangers of breast cancer and to encourage younger viewers to get checked for breast cancer. [9]

To celebrate influential artists in the black community, the annual BET “Hip Hop Awards” was held on October 9th 2015 in Atlanta, Georgia. The awards show also included live performances by Future, Sean Combs, T.I., Kid Ink, among others. [10]

Financials

The growth of alternative video-viewing platforms is taking a large toll on how Viacom is performing. Video on Demand and online-streaming services such as Hulu, Netflix, tablets and smartphones are changing the way people view media and are contributing to a decline in the level of viewership of cable television. Viacom’s success is heavily reliant on television ratings. According to Nielsen, ratings at Comedy Central, BET, VH1, Nickelodeon, Spike, and TVLand have declined by double digits over the last year. [4] [15] [16]

At the end of the fourth quarter, the market price of Viacom’s stock was extremely low in comparison to what it has been over the last five years, priced at about $50.90 per share. Viacom’s fourth quarter revenues declined 5% from the third quarter, totaling $3.79 billion. Although these numbers aren’t strong, President and CEO Phillippe Dauman is staying positive, viewing this outcome as an opportunity for improvement. Dauman said “Viacom’s fourth quarter and year-end results are indicative of our progress in key areas, including recent ratings improvement and renewals of important distribution agreements. [15] [18]

Viacom’s cable television prime-time ratings among the 18-49 year-old demographic have fallen 19% from last year, whereas overall ratings among 18-49 year old viewers for this category have only dropped 7%. This shows that in comparison to the rest of cable television, Viacom’s ratings have taken a significant turn for the worse. [4] [15]

The Future of Viacom

Seeing as Viacom’s revenues for home entertainment, theatrical, filmed entertainment, domestic ad and overall fourth quarter revenues have all been on a rapid decline, the future of this company is extremely questionable and shaky. [15] [16]

Viewership and demand for cable television is at an all-time low, and audiences are more interested in consuming content on demand than ever before. Viacom’s future is moving in the direction of remodeling the company entirely to better fit the future and its consumers. [4] [16] [17]

With the decline of Executive Chairman Sumner’s health, it is important that successors are prepared to make changes to Viacom. Viacom executives are looking to connect more with their younger viewers via alternative media and social media platforms and to engage their younger audience through video on demand companies and streaming services. [4] [17]

Sources

[1] Viacom Timeline. Viacom. Retrieved: December 1, 2015

[2] About Viacom. Viacom. Retrieved: December 1, 2015

[3] Board of Directors. Viacom. Retrieved: December 1, 2015

[4] Viacom Is Having A Midlife Crisis. Bloomberg Business. Retrieved: December 1, 2015

[5] Viacom Inc. Competition. Hoovers. Retrieved: December 1, 2015

[6] Hulu Expands Viacom Deal To Exclusively Stream “Inside Amy Schumer,” Other Shows. The Hollywood Reporter. Retrieved: December 1, 2015

[7] Halo Awards 2015 ABOUT. Nick. Retrieved: December 1, 2015

[8] Cablevision, Viacom Settle Lawsuit Over Channel Bundling. Variety. Retrieved: December 1, 2015

[9] BET Launches New Public Service Announcement “Where Do You Do It?” For 5th Annual Breast Cancer Awareness Campaign. Viacom. Retrieved: December 1, 2015

[10] Drake, Kendrick Lamar and Big Sean Are The Big Winners Of The Night As They Tie With Three Wins At The 2015 BET “Hip Hop Awards.” Viacom. Retrieved: December 1, 2015

[11] Cablevision and Viacom Resolve Litigation. Viacom. Retrieved: December 1, 2015

[12] Justin Bieber, Fifth Harmony, DNCE, Flo Rida, Tori Kelly, WALK THE MOON and More Join Nick Cannon for 2015 Nickelodeon HALO Awards, Concert Special Honoring Young Community Leaders, Sunday, Nov. 29, at 7 P.M. (ET/PT). Viacom. Retrieved: December 1, 2015

[13] Nickelodeon Launches “The Halo Effect,” New Pro-Social-Themed Series Highlighting Teens Who Are Helping and Leading Others. Viacom. Retrieved: December 1, 2015

[14] BET Networks Launches New Original Groundbreaking Documentary “Holler If You Hear Me: Black and Gay in the Church” Exclusively on the BET NOW App Monday, November 2. Viacom. Retrieved: December 1, 2015

[15] Viacom Reports Fourth Quarter and Full Year Financial Results. Viacom News. Retrieved: December 1, 2015

[16] Will Viacom Be Here In A Decade? Big Media’s Digital Dilemma. The Daily Beast. Retrieved: December 1, 2015

[17] Why Viacom’s Philippe Dauman Needs An Heir Apparent, Soon. Deadline. Retrieved: December 1, 2015

[18] How Viacom’s Share Repurchase Strategy Fell Flat. Trefis. Retrieved: December 1, 2015

[19] Verizon FiOS and Viacom Renew Carriage Agreement. Verizon. Retrieved: December 1, 2015

[20] Sumner Redstone Picture 5. Ace Show Biz. Retrieved: December 1, 2015

[21] Shari Redstone. Dld Conference. Retrieved: December 1, 2015

[22] Philippe Dauman Attends A Ceremony Honoring Sumner Redstone With The 2,467th Star On The Hollywood Walk. Top News Stars. Retrieved: December 1, 2015

[23] 25 Highest Paid Men. Fortune. Retrieved: December 1, 2015

[24] Viacom Promotes Wade Davis to CFO. POST Online Media. Retrieved: December 1, 2015

[25] Hulu Selling Japanese Operation To Nippon TV. TechnoBuffalo. Retrieved: December 1, 2015

[26] Cablevision Files Antitrust Lawsuit Against Viacom Over Package Deals. Slash Gear. Retrieved: December 1, 2015

[27] Nickelodeon Announces Panels, Appearances & Signings for SDCC, Oh My!. Blurppy. Retrieved: December 1, 2015

[28] BET Awards 2011: And The Winners Are… College DJ. Retrieved: December 1, 2015

[29] MTV Networks’ Mobile App Study Reveals The Life Cycle of an App: From Discovered to Discarded. Frequency News. Retrieved: December 1, 2015

[30] Warner Music Offers $11.5 Million Settlement to Royalty-Rate Victims. Music Times. Retrieved: December 1, 2015

Viacom

Posted on March 25, 2015 by Jacqueline Perrelli

by  JACKIE PERRELLI

Viacom Logo [1]

Company

Viacom is an entertainment powerhouse responsible for connecting with audiences through a variety of platforms. With approximately 700 million global subscribers [2], Viacom distributes their content across television, and more importantly, online. Lately, Viacom has been focused on restructuring the company and finding new ways to reach audiences. With his recent two-year contract extension, Philippe Dauman, [3] both CEO and President, is believed to be the right man in charge to handle the Viacom reboot.

Dauman’s leadership is especially important in a time when Sumner Redstone, founder of Viacom, is in questionable health. Redstone was not able to attend the last shareholder meeting held in early March [4]. The company is prepared; however, for a post-Sumner world. A board of trustees is in place consisting of current CEOs and family members, ready to protect the Viacom empire. It has even been rumored that Viacom will merge with another media conglomerate, but told not during Redstone’s reign [5].

Background

Viacom TV Channels [23]

MTV, VH1, CMT, Logo, BET, Nickelodeon, Comedy Central, and TV Land are a few channels inclusive to the Viacom brand. In 1987 Redstone, controlling shareholder, bought the company for $3.4 billion dollars [6]. Today, Viacom’s share price is 69.77 [7]. This number is the result of a 14 percent decline last year and already another 8.8 percent downfall in 2015 [8]. Within the past 52 week period the Viacom share price has been as high as 89.76 [7]. One source of the drop in stock price can be attributed to poor ratings.

Stock Price [9]

Viacom Ratings [11]

Viacom pinpoints Nielsen ratings and their inability to calculate views from online sources [10]. Due to the fact that most traditional viewers are switching to some sort of online viewing, ratings from online sources are imperative to Viacom. Since last year, most Viacom channels have declined greatly and are down 30 percent ratings wise [11]. For this reason and many more is why Viacom is in the middle of a reconstruction period.

Online Content

Noggin is a new mobile subscription service for preschoolers.

Noggin Streaming Service [13]

With the goal of staying relevant in a world that skews online, Viacom created a streaming service outside their traditional cable package. This streaming service, Noggin, is through Nickelodeon and aimed at a younger demographic. Due to an 18 percent tumble in audience viewership last quarter, Viacom introduced the service in order to compete with other companies. However, known for their television bundle, Viacom has to be careful not to turn viewers completely online, resulting in subscription cancellation. The livelihood of other channels like VH1, MTV, and TV Land, are at risk if viewers abandon their subscriptions [12]. Viacom is already in risky territory with Suddenlink, the seventh-largest cable operator in the U.S, having recently discontinued their services with Viacom [14].

Viacom VS Suddenlink [22]

Not wanting to pay significant increases for channels, Suddenlink got rid of the bundle completely. Although Suddenlink lost significant viewers from the Viacom split, 99.7 percent of their customers continued to pay for Internet services [14]. At a time with such a strong online presence, Viacom fears that other cable companies could follow in Suddenlink’s footsteps and drop the channel lineup; resulting in solely online streaming. In preparation for the future of television, Viacom has planned to reorganize their company. This has resulted in the favoring of employees with technical capabilities rather than traditional workers as content continues to move online [12].

Viacom Restructuring

Along with a changing platform for providing content, Viacom is experiencing changes throughout the entire company. Most of the changes occurring in the company today stem from both low ratings and advertisement sales. To ameliorate the ad sales, Viacom is going into upfront season with a new strategy to boost advertisers participation within the network. With the Nielsen ratings not sustaining the amount of klout they once had, Viacom has chosen to guarantee success for the advertiser’s ads by broadcasting to very niche audiences [15].

[16]

That in mind, the company outlined a plan that would restructure the Viacom brand moving forward. This business plan included the layoff of 400 jobs across the company ranging from New York to Los Angeles, and encompassing some highly ranked positions. With the elimination of some jobs and cancellation of underperforming shows, Viacom aims to save $350 million dollars annually once the restructuring is complete. But before this can happen, Viacom put a halt on their share buyback program, which aims to shrink the number of outstanding shares, and recorded a $785 million in pre-tax charge for the compensation of laid off workers, abandonment of ineffective programming, and declining ratings due to online competition [17].

To learn more about the Viacom reboot period and which shows are getting cut from the Viacom lineup: click here [18].

Another part of the Viacom restructure deals with the consolidation from three television network groups into two. The first group includes: Comedy Central, MTV, Spike, Logo, and VH1, while TV Land and CMT are now placed with Nickelodeon. The first group will focus towards general content, while the second network group will have a more family-entertainment aspect to it [19]. The Viacom reboot has a significant focus on a shift from traditional TV to more digital content, having a more niche staff, and investing in areas that progress Viacom as a company.

New Audiences

Funny or Die Logo [20]

As Viacom attempts to save money and explore new options, the company has two audience-building transactions in the works. The first transaction deals with the acquisition of three comedy websites. The Onion, Funny or Die, and CollegeHumor, give Viacom more ways to tap into digital and online audiences. [12]

International Revenue [21]

The second transaction involves new audiences and opportunities for Viacom in India. With a very saturated, highly online, U.S. market, Viacom is looking to places overseas worth investing in. While U.S. viewers tend to get most of their content in ways other than the traditional TV, India offers more pay-for-tv customers. Viacom already owns Channel18 in India and is now vying for five more local entertainment channels. The company sees India as a place to invest with over 250 million households with pay-TV service and subscriptions. A benefit of investing in areas overseas are the low-budget production costs and the ability to expand Viacom’s American channels to new countries. Foreign markets allow Viacom to tap into potential audiences outside The United States [21]. India is a popular market not only for Viacom, but also other television companies that are beginning to see the potential in investing overseas.

Overview

It is apparent that many changes are taking place at Viacom, and will continue to take place until the company feels ready and back on its feet. The reorganization of the company, streaming service, and plans for the future are all positive ways in which Viacom can grow and prosper.

Sources

[1] Stempel, Jonathan (March 12 2015). Viacom Agrees To $7.21 Million Settlement To End Interns Wage Lawsuit. Huffington Post. Retrieved: April 9 2015.

[2] About Viacom. Viacom. Retrieved: April 9 2015.

[3] Hagey, Keach and Stynes, Tess (January 15 2015). Viacom Extends CEO’s Contract by Two Years. The Wall Street Journal. Retrieved: April 2 2015.

[4] Szalai, George (March 12 2015). Sumner Redstone to Miss Viacom Shareholder Meeting. The Hollywood Reporter. Retrieved: April 2 2015.

[5] Atkinson, Claire (March 14 2015). Post-Sumner CBS-Viacom power a mixed bag. New York Post. Retrieved: April 9 2015.

[6] The Autumn of Sumner. The Economist. Retrieved: April 9 2015.

[7] Viacom Stock Price. Google Finance. Retrieved: April 10 2015.

[8] Sakoui, Anousha (April 6 2015). Viacom Halts Buybacks, Sees $785 Million Restructuring Costs. Bloomberg Business. Retrieved: April 9 2015.

[9] Viacom Stock Price. Yahoo Finance. Retrieved: April 9 2015.

[10] Hagey, Keach and Ramachandran, Shalini (February 11 2015). The Picture Gets Fuzzy at Viacom. The Wall Street Journal. Retrieved: April 9 2015.

[11] Layoffs, restructuring leads to chaos at Viacom. Fox Business. Retrieved: April 14 2015.

[12] Steel, Emily (January 29 2015). Nickelodeon to Offer a Streaming Service as Viacom Steps Up Digital Efforts. The New York Times. Retrieved: April 9 2015.

[13] Perez, Sarah (February 25 2015). Nickelodeon Unveils “Noggin,” A Mobile Subscription Service For Preschoolers Arriving In March. Tech Crunch. Retrieved: April 13 2015.

[14] Steel, Emily (March 8 2015). Provider’s Dispute With Viacom Highlights Skirmish Over the Cable Bundle. New York Times. Retrieved: April 6 2015.

[15] Steinberg, Brian (April 13 2015). Time Warner, Viacom Back Away From Nielsen Guarantees For Ads. Variety. Retrieved: April 15 2015.

[16] Ryssdal, Kai (April 14 2015). Make more upfront: Viacom, Turner discuss new ad model. Marketplace. Retrieved: April 14 2015.

[17] Gottfried, Miriam (April 7 2015). Viacom: Buyback Step Back Isn’t a Setback. The Wall Street Journal. Retrieved: April 9 2015.

[18] Viacom faces behemoth $785M charge. Youtube. Retrieved: April 15 2015.

[19] Viacom restructures to take $785 mn charge, brings TV networks into two units. Television Post. Retrieved April 10 2015.

[20] Hunsucker, Andy (November 10 2011). A Place For Film Interviews – Funny Or Die Producers. Indiana Public Media. Retrieved: April 14 2015.

[21] Sharma, Amol (January 19 2015). Why Viacom Is Looking to India for a New TV Audience. The Wall Street Journal. Retrieved: April 9 2015.

[22] Goff, Andrew (October 2 2014). Ack! The Suddenlink vs. Viacom War Now Hurting Humboldt’s Ability to Watch the Daily Show Online. Lost Coast Outpost. Retrieved: April 13 2015.

[23] Dampier, Phillip (April 1 2015). Viacom Demands 100% Rate Increases for Hundreds of Small Cable Systems, Military Bases. Stop the Cap! Retrieved: April 13 2015.

Viacom

Posted on October 5, 2014 by nawhite

by Nalae White

Viacom Inc. 1515 Broadway

New York, NY 10036

United States

Phone: (212)-258-6000

http://www.viacom.com [1]

Key Executives:

Philippe Dauman, CEO

Sumner M. Redstone, Founder & Executive Chairman

Thomas E. Dooley, COO

Wade Davis, CFO

Company Overview:

Viacom Inc. is an American mass media company that mainly produces films and cable television shows. Viacom is the fifth largest broadcasting and cable company in the country. Their network reaches approximately 700 million subscribers internationally, throughout about 160 countries and territories. It is estimated that Viacom owns and operates roughly 170 networks, in addition to Paramount Studios, America’s oldest film studio and distributor. Viacom’s networks are largely content based, satisfying more niche markets. Viacom operates hundreds of online, mobile, and app experiences across a wide range of media platforms, including both traditional and new forms of media. [2]

Viacom Owned Networks [i]

Viacom’s history as an independent company has been complicated. Viacom began as a spin-off network from what was then CBS, Inc., establishing itself as a public company in 1971. In 1987, National Amusements acquired the controlling shares of Viacom, owning 83% of the company. However, in 2000, Viacom formed a $39.8 billion merger with CBS Corporation, uniting the two companies once again. Then, in 2005, the companies parted ways again and Viacom rebranded itself as Viacom Inc. Along the way, Viacom had acquired and created over 100 channels through MTV Networks and otherwise. The company has experimented with joint ventures like EPIX, partnerships with music groups like Warner Music Group, feeding into more targeted markets with channels like mtvU, and of course new and innovative ideas for creating and distributing content. [3]

Current Ongoings:

Rendering of Columbia Square [4]

Viacom recently made the decision to relocate and consolidate several of its big name networks to one building in Columbia Square on Sunset Boulevard. MTV, Spike TV, Comedy Central, and BET will all operate out of the $420 million complex within 180,000 square feet of space. The move will put the networks closer to Paramount Studios, which operates a mile from the building. Viacom’s 12-year lease states that the company will capacitate nearly the entirety of a 6-story building within the complex. The lease is the largest to be signed in Hollywood in the last 10 years. Viacom is expected to poster sizable graphics that will be visible from far distances on the building. The purchase is instrumental in what is seen as a revamping of Hollywood, with the complex being the largest “media-tenant” since the construction of the Capitol Records Tower in the 1950s. [4]

Viacom’s network continues to expand, opening new channels to satisfy new markets. This year, Viacom renewed an existing distribution deal with Hulu, an online media streaming service. The contract allows Hulu to use Viacom’s existing repertoire of cable networks to substantiate Hulu’s own library. The renewal will also allow Hulu a wider range of material to choose from, including networks that were not previously available to the streaming service before, such as MTV, VH1, Comedy Central, and Nickelodeon. The deal will contribute largely to the “Hulu Kids” section of the website, reviving older series accompanied by a sense of nostalgia like “Ren & Stimpy” and “Hey Arnold!” which currently air on Viacom’s TeenNick channel. The deal also greatly amplifies the number of Viacom’s past reality shows that will be featured on Hulu. It is speculated that the deal is an attempt by Hulu to compete with Amazon Prime’s Instant Video Inventory. However, the deal barely rivals the existing subscription-streaming deal between Amazon and Viacom, which was the largest sum Amazon has paid for a streaming deal thus far.[5]

Channel 5 Logo [ii]

Viacom has, additionally, closed a £450 million deal, acquiring UK’s Channel 5 Broadcasting Limited from Northern & Shell Media Group. Channel 5 and Viacom’s existing networks have begunexperimenting with joint programming, airing Nickelodeon originated shows on Channel 5, as well producing new content with children’s shows like “Nella the Knight” and a reality show called “10,000 B.C.”[6]

Recent Legal Incidents:

In 2007, Viacom filed a $1 billion lawsuit against YouTube, claiming that the website was perpetuating Copyright Infringement. The judge ruled in YouTube’s favor in 2010, and Viacom filed for an appeal. The suit litigated for a total of 6 years until in 2013, the judge ruled again that YouTube “did not have to police itself”, and that it was Viacom’s responsibility to find infringing videos and alert YouTube to their presence. In March of 2014, Viacom made the decision to cut their losses, reaching an undisclosed settlement in which no money was exchanged with Google, YouTube’s parent company. Since the settlement, the two companies have been in contact about “seizing opportunities”, with the allusion of possible collaborations and close interactions between them.[7][8]

Promotional still for VH1’s TLC Biopic, CrazySexyCool [11]

In April of 2014, Viacom was sued by Perri “Pebbles” Reid, former manager of 90’s R&B group TLC, for claims of defamation. In 2013, the 2-hour biopic “CrazySexyCool”, following the lives and fame of the popular R&B group, premiered on VH1, a channel owned by Viacom Inc. The biopic was reported to have given VH1 its highest ratings in 5 years. The lawsuit calls for $40 million in compensatory and punitive damages, as well as a request to ban the movie or associated promotional materials from being publicized. Reid believes that the movie disparaged her reputation both as an entertainer and businesswoman, and that “Viacom abandoned journalistic and literary integrity and ignored fundamental canons of journalistic and literary conduct by publishing false and defamatory accusations with actual malice.” The former manager claims that she was presented as “conniving and dishonest”, as it demonstrated that she deceived her clients and robbed them of their royalty money. Reid claims that she had no control over the group’s lawyer’s or accountants. Viacom has refused to comment. [9][10][11]

In February of 2013, Cablevision filed an antitrust lawsuit against Viacom, alleging illegal channel tying during program negotiations; Cablevision claims that Viacom threatened a “10 figure penalty” if Cablevision did not agree to carry smaller suites in addition to must-have cable programming. Viacom counters that the “10 figure penalty” in question is the difference between standard rates and a negotiation between Viacom and Cablevision as the result of “good-faith negotiations” since the two have worked together in the past. The lawsuit was filed three months after a carriage deal between Cablevision and Viacom. Viacom moved to have the case dismissed, however the judge ruled that there was viable evidence on Cablevision’s behalf to review an antitrust claim. There is no trial date set.[12]

Financial Information

Fiscal 2014 Report:

Revenues: $13.78B

Adjusted Operating Income: $4.13B

Adjusted Net Earnings: $2.38B

Adjusted Diluted EPS: $5.4M

Viacom’s fiscal year came to a close on September 30^th, 2014. The company demonstrated an impressive fiscal year. While Viacom’s total revenue showed a negligible change in comparison to the previous year, other factors were notable. Both the company’s Adjusted Operating Income and Adjusted Diluted Earnings Per Share reached all time highs, rising 5% and 15% respectively. The company’s Adjusted Net Earnings also increased by 3.8% from the previous year.[13]

Sources:

1 Yahoo! Finance: Viacom Financial Profile Date Acquired: December 1^st, 2014

²Viacom Website: About Viacom Date Acquired: December 1^st, 2014

3 Viacom Timeline: History of Viacom Date Acquired: December 1^st, 2014

4 LA Times: Viacom Signs 12-Year Lease at Columbia Square in Hollywood Date Acquired: December 1^st, 2014

5 LA Times: Hulu Extends Streaming Deal With Viacom, Expands Library Date Acquired: December 1^st, 2014

6 Viacom News: Viacom Closes Acquisition of Channel 5 Date Acquired: December 1^st, 2014

7 Bloomberg BusinessWeek Technology: Viacom Gives Up On Its YouTube Copyright Lawsuit Date Acquired: December 1^st, 2014

8 Bloomberg BusinessWeek: Viacom and Google Settle YouTube Lawsuit Date Acquired: December 1^st, 2014

9 Bloomberg BusinessWeek: Former TLC manager sues Viacom For Defamation Date Acquired: December 1^st, 2014

10 The Root: Pebbles Files $40,000,000 Lawsuit Against Viacom Over TLC Biopic Date Acquired: December 1^st, 2014

11 Eurweb: TLC Biopic Gives VH1 Its Highest Ratings in 5 Years Date Acquired: December 1^st, 2014

12 The Hollywood Reporter: Viacom Can’t Escape Cablevision’s Antitrust Lawsuit Date Acquired: December 1^st, 2014

13 4^th Quarter ’14 Earnings Press Release: Viacom Reports Record Profit For Fiscal 2014 Date Acquired: December 1^st, 2014

Photo Sources:

i Stop the Cap: Viacom Demands 100% Rate Increases Date Acquired: December 1st, 2014

ii Deadline.com: Channel 5 Sale Speculations Date Acquired: December 1^st, 2014

Viacom

Posted on November 19, 2013 by Samuel Cohen

By Sam Cohen

Courtesy of Wikimedia [17]

Key Executives

Courtesy of Forbes.com [18]

Sumner M Redstone – Executive Chairman of the Board of Directors and Founder

Courtesy of allthingsd.com [19]

Philippe Dauman – President and CEO

Courtesy of Viacom.com [20]

Thomas Dooley – COO

The current incarnation of Viacom was founded in 2005 after the company split from CBS Corporation and took certain media properties with it. Viacom — short for Video & Audio Communications — is owned by National Amusements Inc., which also owns CBS Corporation. [1]

Viacom owns a number of media outlets, including Paramount Pictures, MTV Networks, Comedy Central, BET Networks, Nickelodeon Networks, Spike TV, CMT and VH1, as well as music production and online divisions. However, this profile focuses on the television holdings of the company.

Viacom’s headquarters in New York are at 1515 Broadway.
Courtesy of worldpropertychannel.com [21]

In 2013 Viacom has had a very successful third quarter, reporting $3.65 billion in revenue, up 9% from the third quarter last year. Net earnings for the third quarter were $806 million up 25% over the same period last year. Viacom’s total adjusted net earnings for 2013 were $2.32 billion, up 2% from the previous year. Viacom Media Networks, which accounted for $2.46 billion of that revenue, up 7% from the previous year’s third quarter, also accounted for revenue of $9.66 million in all of 2013, up 5% from last year [2]. For full 3rd quarter financials click here

This semester Viacom has been maintaining strong ratings for its established shows with returning seasons and relying on healthy ratings for event specials and award shows that have been held throughout the past few months and those that are scheduled in the coming months. These specials span the networks owned by Viacom and have battled both cable and broadcast shows for the top spot in the 18-to-49 demographic during their time slots. Viacom has also managed to effectively use social media to get more press for their specials and shows.

Miley Cyrus' controversial performance at the VMAs Courtesy of http://ibnlive.in.com

Miley Cyrus’ controversial performance at the VMAs.
Courtesy of ibnlive.in.com [22]

The first of these major events was the MTV Music Awards, which became national news because of the controversial performance by Miley Cyrus. The show was watched by nearly 10.1 million people and had the second highest viewership of any show on cable that week, losing only to A&E’s Duck Dynasty by 40,000 views [3]. The award show also topped most shows that week in the broadcast world for number of people who watched live or same day. The only show that beat out the Music Awards was Under the Dome, which aired that week on CBS [4]. The event was also a social media sensation, creating 120 national and worldwide trending topics on Twitter and 1.2 million like on Instagram [5]. The MTV Music Awards also broke a Twitter record: During Miley’s controversial performance 306 thousand tweets were tweeted per minute [5]. The show also garnered the ire of the Parents Television Council and was talked about across the news sphere for several days. in case you didn’t catch the performance you can see it here

Comedy Central has also done quite well this fall with strong showings from a number of returning shows as well as one new show, @midnight. Network ratings were up 10% across the board with Tosh.0 leading the way as the #1 cable program with males 18-to-24 [6]. That show was also the third most watched cable program on the night of its fall premier with two million viewers. [7]

The return of John Stewart to The Daily Show saw the show continue its dominance over late night in the cable world with The Colbert Report also coming in strong [8]. Key & Peele also have had a strong year, making number 1 in its time slot among men 18-to-24 and having 49% growth in audience from last season. [6]

@Midnight has been a successful addition to Comedy Central's late night line up Courtesy of laughingsquid.com

@Midnight with host Chris Hardwick has been a successful addition to Comedy Central’s late night line up.
Courtesy of laughingsquid.com [23]

South Park began its 17th season with stellar ratings. The season premier was the top show on cable among adults 18-to-49 and was the top show on TV among men 18-to-34 and men 18-to-24 [9]. Finally the network debut a new show @midnight to follow The Colbert Report. The show, which, Comedy Central had hoped would piggyback off of The Colbert Report, did more than that even beating Colbert in certain demographics. [10]

SpongeBob SquarePants has been the most watched kids show this quarter Courtesy of tvbythenumbers.com [14]

SpongeBob SquarePants has been the most watched kids show this fall.
Courtesy of tvbythenumbers.com [14]

Another Viacom media property that has had a good fall is Nickelodeon. The station consistently led the total day viewership among cable networks including, for example the three consecutive weeks ending November 3 [11], November 10 [12] and November 17 [13]. Nickelodeon has also dominated cable networks among the 2-to-11 demographic. The network has been top in the kids demographic for six straight weeks [14]. SpongeBob SquarePants has helped propel Nickelodeon to such heights as the number one program with kids 2-to-11 [14]. Nickelodeon has also had nine straight months of year-over-year ratings gains.

Nick Cannon Hosted the 2013 HALO Awards.
Courtesy of theholleywoodreporter.com [24]

Nickelodeon also had a special this weekend on Nick at Night: the TeenNick HALO Awards, which honored four teens for their community service and featured a number of celebrity guests. The show used social media to engage and connect with viewers by encouraging live tweeting and posts to Instagram with the hashtag #HALOawards [15]. Nickelodeon hoped that this interactive experience would change the way that award shows would take place in the future.

Another big upcoming event takes place on Viacom’s Country Music Television. CMT has done well this fall with music video ratings up from last year [6], but they’re hoping for a big boost from the upcoming CMT Artists of the Year special scheduled for primetime December 3. For more information on the event click here. CMT hopes to garner some solid ratings among certain psychographic groups especially the believer and maker psychographics.

Michelle Obama was a guest on a special 90 minute 106 and Park Courtesy of Newsone.com

Michelle Obama was a special guest on a 60 minute episode of 106 and Park
Courtesy of Newsone.com

The final Viacom network that just received a big boost is BET, which had two major events: one on Tuesday, November 19 and the other on December 1. On then 19th The First Lady of the United States appeared on 106 & Park, which has been the top music variety show on cable for the past 15 quarters [16]. Ratings for the special were not yet available as of noon on November 20th. On the 1st The Soul Train Awards hopes to duplicate the success seen by The BET Awards earlier this year.

Viacom has used its many networks to ensure that profits will continue to increase through the 4th quarter of 2013 and into 2014. The company’s strategy of getting strong showings from returning programs and excellent ratings on its large specials is working. The channels of the Viacom Media Networks clearly reach the demographics they are targeting and make Viacom one of the leaders in cable television programming.

Sources

[1] Viacom Wikipedia RET: 11/20/13

[2] Viacom 3rd Quarter Financial Report RET: 11/20/13

[3] Cable Ratings for the Week Ending August 25th RET: 11/20/13

[4] Broadcast Ratings for the Week Ending August 25th RET: 11/20/13

[5] Huffington Post – MTV VMA Ratings Rise For 2013 Thanks To *NSYNC Reunion, Robin Thicke And Miley Cyrus Performance RET: 11/20/13

[6] Viacom 4th Quarter ’13 Pulse Newsletter RET: 11/20/13

[7] Daily Cable Ratings Tuesday September 24th RET: 11/20/13

[8] Late Night Ratings RET: 11/20/13

[9] TV by the Numbers – South Park Season 17 Premier RET:11/20/13

[10] Deadline Hollywood – @Midnight’ Opens Well With Comedy Central’s Target Young Guy Crowd RET: 11/20/13

[11] Cable TV Network Weekly Ratings for Week Ending November 3rd RET: 11/20/13

[12] Cable TV Network Weekly Ratings for Week Ending November 10th RET: 11/20/13

[13] Cable TV Network Weekly Ratings for Week Ending November 17th RET: 11/20/13

[14] TV by the Numbers – Nickelodeon Tops Cable RET: 11/20/13

[15] TV by the Numbers – HALO awards RET: 11/20/13

[16] BET Press Releases – First Lady Visits 106 & Park RET: 11/20/13

[17] Wikimedia – Viacom Logo image RET: 11/20/13

[18] Forbes – Sumner M Redstone RET: 11/20/13

[19] Allthingsd – Philippe Dauman RET:11/20/13

[20] Viacom – Senior Management RET: 11/20/13

[21] World Property Channel – Viacom Renews New York HQ Lease RET: 11/20/13

[22] Ibnlive.com – Is Miley Cyrus the Only Celebrity to Popularise Twerking? RET:11/20/13

[23] Laughing Squid – @midnight, A New Late Night TV Show Hosted by Nerdist’s Chris Hardwick RET: 11/20/13

[24] Hollywood Reporter – Nick Cannon Announces Monthly Youth Honor at 5th Annual TeenNick HALO Awards RET: 11/20/13

[25] News One – First Lady Michelle Obama Discusses Education On BET’s 106 & Park RET: 11/20/13

Viacom Inc.

Posted on April 9, 2013 by namezaro

[1]

by Nicole Mezaros

Viacom Inc.
1515 Broadway
New York, New York 10036
(212) 258-6000
www.viacom.com
@Viacom

Sumner M. Redstone, Philippe Dauman, Thomas E. Dooley, Robert Bakish, and Brad Grey [2],[3],[4],[5],[6]

Top Executives

Sumner M. Redstone: Founder and Chairman of the Board of Directors since 2006. He also serves as the Executive Chairman of CBS [7].

Philippe Dauman: President and CEO since 2006 [8].

Thomas E. Dooley: Chief Operating Officer since 2010. He previously served as the CFO [8].

Robert Bakish: President and CEO of International Media Networks since 2011. He oversees all media networks outside of the United States [8].

Brad Grey: CEO of Paramount Pictures since 2005. Grey oversees the entire branch of Paramount Pictures [8].

A Brief History

In 1971, Viacom was formed by breaking off from CBS; it then merged with Warner Communications in 1983 [9]. It bought MTV in 1986, and then merged with Paramount Communications in a nearly $10 billion agreement [9]. The VIA stock became available to be bought and sold in the NYSE in 1999 [9]. CBS, the company it came from, and Viacom merged in a nearly $40 billion merger in 2000 [9]. In the next few years, it purchased BET, Noggin, Comedy Central, TNN, and more [9]. CBS and Viacom then split again in 2006 [25]. Also in 2006, Paramount acquired Dreamworks LLC, and MTV then partnered with Warner Music group [9]. Most recently, in 2011, Viacom International Media Networks was created [9].

General Overview

Viacom has many diverse assets, and therefore produces a lot of varied programming in different markets. It owns 205 television channels, spanning over 169 territories and in nearly 40 different languages [10]. It also owns Paramount Pictures, a big player in the film industry, and has released films of all types, such as The Adventures of Tintin and Paranormal Activity, that reach varied demographics.

Viacom’s TV Assets [11]

In the cable television market, Viacom has many different assets. These networks are very different and, again, reach many different audiences. Some of their major assets include MTV and Nickelodeon, which reach a younger audience, Comedy Central, Spike, and BET, which reach an adult audience, and TV Land, which reaches an older audience. Each network plays very different programming. VH1 and MTV play both shows about popular music and reality shows, with series such as Buckwild on MTV and Top 20 Video Countdown on VH1. Comedies of all different types are played on Comedy Central, such as The Colbert Report, and TV Land offers a lot of reruns of old shows and some original programming. Networks such as CMT (Country Music Television) and BET (Black Entertainment Television) also reach very specific demographics. Nickelodeon is the #1 cable network for seventeen years, showing the success of their networks [12].

Spongebob Squarepants, airing on Nickelodeon. [13]

Viacom has a lot of competitors, some of which include NBCUniversal, Time Warner, and Walt Disney [14]. Still, it is a leader in the cable television market .

Financials

During the first quarter of 2013, Viacom had a revenue of $3.314 billion, which includes $2.394 billion from media networks and $975 million from films [15]. This number is down 16% from last year’s first quarter [15]. However, media networks hardly decreased, down only 2%; this decrease is mainly due to filmed entertainment, which is down nearly 40% [15]. MTV is the network with the highest revenue, at around $548 million, with Nickelodeon following at around $357 million [10].

Viacom Inc. (VIAB) Interactive Chart Analysis - NASDAQ jpg

Viacom Inc. Stock 1 Year Chart [16]

The Viacom stock, sold as VIAB on NASDAQ, is currently priced at $65.49, hitting a high [16]. This is nearly $20 higher than CBS, around $7 higher than the Walt Disney Company, and nearly $25 higher than Comcast, all of which are Viacom’s competitors [17]. The VIAB stock increased greatly this year, raising from $46.75 a year ago to $65.49 today [16]. Viacom also sells class A stock, VIA, at $66; with this, stockholders have voting rights.

Recent News

Viacom has been in the news recently due to two major cases. First of all, Cablevision, a big cable TV service provider, is suing Viacom for bundling its channels and charging more for single channels [18]. This has, however, been its practice for a very long time. Also, last year, the case starting in 2007, in which Viacom sued Youtube, the popular website where users can upload their own videos, saying that some of its content infringed on Viacom”s copyright, was revived [19]. This case is still going on today.

Viacom also, however, has had a lot of positive things going on recently. VH1’s ratings in adult viewership raised 33% in 2012 [20]. It also has a lot of new shows airing this season, including Best Week Ever and The Jenny McCarthy Show, and new episodes of older shows, such as the very successful Mob Wives.

NEW SHOWS + NEW LOOK + @VH1 #plussed (:30)

Also, the 26th Annual Kids’ Choice Awards, airing on March 23rd, drew an audience of nearly 6 million viewers with just the premiere, boosting Nickelodeon’s ratings greatly [21]. The 2013 MTV Movie Awards are set to air April 13th, which should also boost MTV’s ratings.

2013 Movie Awards: VOTE NOW FOR MOVIE OF THE YEAR!

Digitally, Viacom is working on a lot of new technology in order to better the viewer experience. The new Star Trek into Darkness app allowed app users to get tickets to an early showing of the film [22]. Also, Spike TV, a cable channel, has created a new app for using while viewing Bellator MMA, a mixed martial arts fighting tournament. The app allows veiwers to interact with the show in a way not used with other second screen apps, using results from judging on the app in the live show [23].