Rachel Roth
Viacom Logo [19]
Viacom
1515 Broadway – 52nd Floor
New York, NY 10036
(212) 846-6700
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
