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].

Bellator MMA App by Spike TV [24]

1. Viacom Logo, from Viacom, Inc.

2. Sumner M. Redstone

3. Philippe Dauman

4. Thomas E. Dooley

5. Robert Bakish

6. Brad Grey

7. Board of Directors

8. Senior Management

9. Viacom: History

10. 1st Quarter ’13 Pulse Investor Newsletter

11. Viacom’s TV Assets

12. Nickelodeon

13. Nickelodeon Wins First Quarter of 2013

14. Viacom Inc. Competitors

15. 1st Quarter ’13 Earnings Press Release

16. Viacom Inc. Interactive Stock Chart

17. Yahoo Finance

18. Cablevision Sues Viacom in Battle Over Bundling of Channels

19. Judge revives Viacom copyright suit against YouTube

20. Viacom Primetime Ratings Soar 33%

21. Nickelodeon Marks Winning Week with 26th Annual Kids’ Choice Awards

22. “STAR TREK INTO DARKNESS” First of Its Kind App

23. Spike TV Launches Groundbreaking Co-Viewing App For Bellator MMA

24. Bellator MMA by Spike TV

25. CBS, Viacom Formally Split

Comcast/NBCUniversal

Posted on April 8, 2013 by Zachary Eisen

by Zach Eisen

NBCUniversal Media, LLC

30 Rockefeller Plaza

New York, NY 10112

212.664.4444

www.nbcuni.com

About the Company [1]:

A snapshot of what NBCU owns

NBCUniversal is a major media company owned by the Comcast Corporation. With headquarters in world-famous Rockefeller Center, NBCU owns and operates a variety of media outlets across many different platforms, including broadcast and cable television, film, and digital media. NBCU’s content is distributed around the world.

Television

NBCUniversal has a variety of holdings in both broadcast and cable television. It owns the NBC broadcast network and the Telemundo network, airing popular programs such as NBC Nightly News, Today, Saturday Night Live, and The Office. NBC also owns and operates TV stations in some of the largest markets in the country, including New York, Los Angeles, and Chicago. NBCU’s cable holdings include the NBC Sports Network, MSNBC, CNBC, USA, E!, Bravo, and The Weather Channel. NBC also owns the broadcast rights to the Olympics, NHL and NFL games, and many other major sporting events.

Film

NBCU owns Universal Pictures, one of the Big Six major film companies. Universal is famous for movies such as E.T.: The Extra-Terrestrial, Jurassic Park, Jaws, and the Bourne series [2]. The company also owns Focus Features, which is Universal’s art, foreign, and independent film division. NBCU also owns Universal Parks and Resorts, with full ownership of the parks in Los Angeles and Orlando and part ownership of locations in Japan and Singapore.

Online

NBCUniversal owns multiple digital and online companies, including NBC.com, Fandango, and iVillage. It also is part of a joint-venture in Hulu, the online streaming service.

Key Executives [3]:

Stephen B. Burke – CEO, NBCUniversal

Stephen B. Burke

Stuart J. Epstein – Executive VP and CFO, NBCUniversal

Stuart J. Epstein

Robert Greenblatt – Chairman, NBC Entertainment

Robert Greenblatt

Brian Roberts – Chairman and CEO, Comcast Corporation

Brian Roberts

For more information on NBCUniversal’s executives, click here.

Competitors:

In the broadcast television market, NBC’s main competitors are the other Big Four major networks, which are ABC, CBS, and FOX. However, cable viewership is quickly growing, which means NBC also competes with basically every television station for viewers and advertising dollars.

Ownership History [4]:

NBCUniversal was officially founded in 2004, when NBC and Universal merged into one company. At the time of the merger, Vivendi and GE shared ownership of the company. In 2009, GE and Comcast announced plans to create a joint venture out of NBCUniversal’s companies and Comcast’s cable holdings. The plan was finalized in early 2011, with Comcast taking a majority stake in the company. In early 2013, Comcast announced it would buy GE’s 49% minority stake, a $16.7 billion deal which allowed them to assume 100% ownership of NBCUniversal [5].

Financial Information [6]:

2012 was a successful year for NBCUniversal across the board. The company earned $23.8 billion in total revenue, an increase of nearly $2.7 billion, or 12.7%, from 2011. NBCU’s revenue in all four of its divisions (Broadcast Networks, Cable Networks, Film, and Theme Parks) saw increases in 2012.

The largest gains were made in the Broadcast Television division, which jumped 27.4% from the previous year. The broadcast numbers were aided by the network’s airing of the 2012 London Olympics and Super Bowl XLVI. Excluding these events from the numbers, the Broadcast division’s revenue still saw a 4.8% increase, driven by political advertisements on its Owned & Operated stations. The increased revenue from the political ads also helps explain the Broadcast division’s 7.9% increase in the fourth quarter of 2012 from the same period in 2011.

NBCU’s Cable Networks division accounted for the company’s smallest increases in 2012 (3.3%), but generated the most revenue for the company ($8.8 billion). The NHL lockout hurt ratings for the NBC Sports Network during that time, which boasts NHL coverage as its key selling point. However, ratings for that network reached all-time highs once hockey returned [15]. Advertising revenue decreased by 1.5% in the fourth quarter for NBC’s cable networks.

News:

• GOODBYE, GE

On March 19, Comcast completed its purchase of GE’s 49% stake in NBCUniversal [7]. The $16.7 billion deal also included the sale of GE’s headquarters at the famous 30 Rockefeller Plaza building to Comcast. The deal brings to an end GE’s involvement with NBC, which began in 1919 when the company helped found the Radio Corporation of America, which started the National Broadcasting Company in 1926 [8]. Since then, NBC has been owned by GE, RCA, Westinghouse, Vivendi and now Comcast. Watch Wall Street Journal Live’s analysis of the deal below (video courtesy of YouTube).

• ADIÓS, NBC

For the first time ever, NBC fell out of the top four networks during a sweeps period conducted by Nielsen [9]. Univision, the Spanish language network, moved ahead of NBC as the fourth most watched network among adults ages 18-49 during the month of February. NBC struggled during that month, as its new show Do No Harm was cancelled after just two episodes, and the new comedy 1600 Penn struggled as well [10].

• THE TONIGHT SHOW WITH…

Jimmy Fallon (right) will take over for Jay Leno (left) as host of “The Tonight Show”.

…Jimmy Fallon? NBC announced in April that the Late Night host will replace Jay Leno on The Tonight Show starting in 2014 [11]. Leno, who has hosted The Tonight Show for 22 years, took over for Johnny Carson in 1992. Leno was replaced by Conan O’Brien in 2009 [12], but returned only seven months later [13] after a feud with the network over a time for his new show. It is being rumored that Saturday Night Live head writer and “Weekend Update” host Seth Meyers will replace Fallon as host of Late Night.

• USA! USA!

NBCU’s USA Network earned the best primetime ratings for a cable network in the first quarter of 2013, its eighth year in a row earning that honor [14]. Popular programs such as Suits and WWE Raw helped the network win the quarter, defeating rivals with popular programs such as AMC and its hit The Walking Dead. USA averaged over 3 million viewers during the primetime slots. Another NBCU network, Bravo, also improved, making the top ten networks among viewers ages 25-54.

• NHL COVERAGE SCORES FOR NBC SPORTS NETWORK

The NBC Sports Network is posting record numbers this year for its NHL coverage [15]. The network, formerly Comcast’s Versus, is averaging 448,000 viewers per game, up from its previous high of 348,000 viewers. The numbers may have gotten a boost because of the lockout that cut the season down to 48 games. National games airing on NBC’s broadcast network are also doing better, averaging 1.7 million viewers,just ahead of its previous tally of 1.6 million.

• ‘THE VOICE’ NEARS IN ON ‘IDOL’

The popular singing competition show, The Voice, has returned to NBC’s lineup, and has outperformed FOX’s American Idol so far [16]. Although Idol‘s first two episodes earned stronger ratings than The Voice‘s, NBC’s program is gaining momentum, while FOX’s is seeing its lowest ratings in the 12-year history of the show. The show’s performance in the ratings for the remainder of the season may tell whether it will replace Idol as America’s favorite singing show.

• USING THE SECOND SCREEN

In March, USA allowed fans of its series Psych to choose the ending of the show’s 100th episode [17]. The vote was part of a new online and mobile feature called USA Sync, an attempt by the network to use new media to add interactivity to its programming [18]. The program allows fans to post about the shows, connect with each other, and play interactive games. On the mobile platform, the service is available as an app that gives users access to more content through other applications.

• A DELICIOUS PREMIERE

The much anticipated new series Hannibal premiered on NBC on April 4. The series, about fictional evil genius Hannibal Lecter, serves as a prequel to the 1991 classic film The Silence of the Lambs. The show earned praise from Internet critics, with some calling it “riveting” [19], and others saying it was “beautifully shot and…surprisingly thoughtful” [20]. Watch a promo for Hannibal below (video courtesy of YouTube).

• FOR E!, OLDE IS NEW

Jeff Olde

In March, E! named former VH1 executive Jeff Olde head of its programming [21]. Olde will be in charge of the development of E!’s shows, including Keeping Up With The Kardashians, The Soup, and Chelsea Lately. Olde will begin his new job this summer.

Sources:

[1]: http://www.nbcuni.com/corporate/about-us/

[2]: http://www.boxofficemojo.com/studio/chart/?studio=universal.htm

[3]: http://www.nbcuni.com/corporate/management/

[4]:http://www.nbcuni.com/corporate/about-us/history/

[5]: http://mediadecoder.blogs.nytimes.com/2013/02/12/comcast-buying-g-e-s-stake-in-nbcuniversal-for-16-7-billion/

[6]: http://www.marketwatch.com/story/comcast-reports-4th-quarter-and-year-end-2012-results-2013-02-12

[7]: http://www.deadline.com/2013/03/comcast-completes-acquisition-nbcuniversal/

[8]: http://www.gereports.com/its-a-wrap/

[9]: http://tvbythenumbers.zap2it.com/2013/02/27/univision-sets-milestone-as-no-4-network-in-february-sweeps-ahead-of-nbc-in-key-demos/171192/

[10]: http://www.deadline.com/2013/02/nbc-sweeps-ratings-lastloses-to-univision/

[11]: http://www.thedailybeast.com/articles/2013/04/02/source-jimmy-fallon-to-take-reins-of-tonight-show-from-jay-leno.html