Viacom, Inc. - Columbia Institute for Tele

Transcription

COMPANY PROFILE
Viacom, Inc.
REFERENCE CODE: 68021BD5-5AAC-42A5-B437-11958F2E0AB9
PUBLICATION DATE: 7 Oct 2013
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Viacom, Inc.
TABLE OF CONTENTS
TABLE OF CONTENTS
Company Overview..............................................................................................3
Key Facts...............................................................................................................3
Business Description...........................................................................................4
History...................................................................................................................7
Key Employees...................................................................................................14
Key Employee Biographies................................................................................16
Major Products and Services............................................................................24
Revenue Analysis...............................................................................................26
SWOT Analysis...................................................................................................27
Top Competitors.................................................................................................33
Company View.....................................................................................................34
Locations and Subsidiaries...............................................................................38
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Company Overview
COMPANY OVERVIEW
Viacom Inc. (Viacom or “the company”) is one of the leading global entertainment content companies.
The company provides the entertainment content through television (TV), motion picture, internet
and mobile platforms. Viacom's prominent brands include the multiplatform properties of MTV
Networks, BET Networks and Paramount Pictures. The company primarily operates in the US,
Europe and Asia Pacific. It is headquartered in New York City, New York and employs 9,880 people
as of September 30, 2012.
The company recorded revenues of $13,887 million during the financial year ended September 2012
(FY2012), a decrease of 6.9% compared to FY2011.The operating profit of the company was $3,901
million in FY2012, an increase of 5.1% over FY2011. The net profit was $1,981 million in FY2012,
a decrease of 7.3% compared to FY2011.
KEY FACTS
Head Office
Viacom, Inc.
1515 Broadway
New York City
New York 10036
USA
Phone
1 212 258 6000
Fax
Web Address
http://www.viacom.com
Revenue / turnover 13,887.0
(USD Mn)
Financial Year End
September
Employees
9,880
New York Ticker
VIA
New York Ticker
VIA.B
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Business Description
BUSINESS DESCRIPTION
Viacom, Inc. (Viacom or “the company”) produces and distributes TV programming, motion pictures
and other entertainment content. The company offers entertainment content and media related
services. Viacom has its operations across the US, Europe, and Asia Pacific in 160 countries and
territories.
The company organizes its business operations into two segments: media networks and filmed
entertainment.
The media networks segment provides entertainment content and related branded products for
consumers in key demographics. It creates, acquires and distributes programming to its audiences
on TV, the internet and mobile devices and through a variety of consumer products and themed
entertainment.
Viacom Media Networks operates the company’s media networks businesses through four channel
groups: Music & Logo, Nickelodeon, Entertainment and BET Networks. Viacom Media Networks
and its international operations reach approximately 700 million households in approximately 160
countries and territories worldwide through its approximately 200 channels and multiplatform
properties, which include MTV, VH1, CMT, Logo, BET, CENTRIC, Nickelodeon, Nick Jr., TeenNick,
Nicktoons, Nick at Nite, COMEDY CENTRAL, TV Land, SPIKE, Tr3s, Paramount Channel and VIVA,
among others. Viacom Media Networks also has a casual games business that includes websites
such as AddictingGames.com and Shockwave.com.
The Music & Logo group includes Viacom's music, youth and young adult-oriented program services
and digital properties that target the 12-24, 18-24 and 18-34 demographics. Logo properties offer
original and acquired content, news, social networking and community building catering to specific
audiences. Some of the key brands of the Music & Logo group include MTV, a music and lifestyle
network that offers content built around storytelling, music discovery and activism across television,
online and mobile platforms. During September 2012, MTV reached approximately 98 million domestic
TV households and more than 600 million households in more than 160 countries and territories
worldwide through its 41 MTV branded channels.
MTV2 is part of the MTV family of channels that features music, live-action sports and lifestyle
programming targeting male audience aged 15 to 25. It reached approximately 79 million domestic
TV households in FY2012. MTV.com is an online service featuring a range of entertainment and
pop culture content reflecting the core themes of MTV and MTV2 including music-based programs,
action sports and lifestyle programming. In the quarter ended September 30, 2012, MTV.com
averaged approximately 11 million monthly visitors and 134 million video streams each month.
The company’s VH1 brand features programming primarily focused on music artists, celebrities and
real life stories, as well as online and mobile platforms. VH1 targets adults aged 18–49 who are
interested in pop culture. It reached approximately 97 million domestic TV households in September
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2012. VH1 Classic is a vintage-themed network featuring music videos, documentaries, movies and
concert footage from the 1960s, 1970s, 1980s and 1990s, as well as other music-themed programs.
It reached 60 million domestic TV households in September 2012. VH1 Digital brand offers digital
and mobile destinations, VH1.com, VH1Classic.com, m.VH1.com and various applications (apps),
featuring an array of content centered on VH1 shows, music, pop culture and celebrity content,
including original series, exclusive events, music videos, live performances and news.
The company’s CMT brand features country music and entertainment. CMT and its website, CMT.com
offer a mix of music, news, live concerts and series and is a resource for country music on demand.
The network’s digital platforms include the 24-hour music channel, CMT Pure Country, CMT Mobile
and CMT VOD. CMT reached approximately 91 million domestic television households in September
2012. In the quarter ended September 2012, CMT.com averaged approximately one million monthly
unique visitors.
Other key brands of the Music & Logo group include mtvU, the company's on-air, online and
on-campus network created by and for the college audience; MTV Films, MTV's motion picture
brand; and PalladiaHD, a music-centric high definition (HD) television channel.
The Nickelodeon group provides entertainment and educational programs, websites and online
services that target kids aged 2-17 and their families. Some of Viacom’s key properties in Nickelodeon
group include Nickelodeon and Nick at Nite. Nickelodeon features original and licensed programming
for kids during the daytime hours. Nick at Nite airs during the evening and overnight hours and
primarily features licensed contemporary family comedies. Nickelodeon produces and distributes
television programming worldwide and has a global consumer products business. Nickelodeon and
Nick at Nite reached approximately 99 million domestic TV households in September 2012.
Nickelodeon reached approximately 300 million households in more than 130 countries and territories
in September 2012 through its 79 Nickelodeon branded channels. Nick.com is an online destination
that offers video streaming of Nick content and games. In the quarter ended September 30, 2012,
Nick.com sites averaged 7.2 million monthly unique visitors. Nick.com had an average of 83.4 million
video streams each month.
Nickelodeon group’s other brands include Nick Jr., a channel for preschoolers that educates and
entertains; NickJr.com; TeenNick and TeenNick.com; Nicktoons; ParentsConnect.com; Nickelodeon
Games Group; Nick Jr. Video, broadband service of Nick Jr.; Nickelodeon Movies, Nickelodeon’s
motion picture brand; and the Nickelodeon Animation Studio. In addition, Nickelodeon licenses its
brands for hotels, cruises, live tours and other themed entertainment outlets.
The entertainment group produces and distributes programming and online content and games that
target adult and male audiences. The group's primary brands include: COMEDY CENTRAL, an
all-comedy television network; Comedycentral.com, an online video platform featuring COMEDY
CENTRAL content; Spike TV, a male-oriented network featuring a mix of original and acquired
programming, specials, live events, and movies. It also includes SPIKE.com which is an online video
entertainment destination for men aged 18–34, featuring Spike TV's shows, movie and video game
trailers, sports clips, celebrity galleries and original digital content; and TV Land. Other properties
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of the entertainment group include GameTrailers.com, which produces broadcast quality video
content for video games.
BET Networks provides entertainment, music, news and public affairs programming targeted to the
African-American audience and consumers of Black culture. Its program services include its flagship
BET channel, CENTRIC, BET Gospel and BET Hip Hop. BET channel focuses on young Black
adults; BET Gospel provides gospel music and spiritual programming; and BET Hip Hop offers
features hip hop music programming and performances. CENTRIC targets multicultural audiences,
delivering a variety of music artists, along with culturally relevant movies, series, live performances,
specials and reality programming.
BET Networks' other properties include BET Home Entertainment, a collection of BET-branded
offerings including DVDs and video-on-demand; and BET Mobile, which provides music, gaming
and video content to its target audiences on mobile devices and digital services across all major
service providers.
The filmed entertainment segment produces, finances and distributes motion pictures and other
entertainment content under the Paramount Pictures, Paramount Vantage, Paramount Classics,
Insurge Pictures, MTV Films and Nickelodeon Movies brands. Paramount Pictures is a producer
and distributor of motion pictures and has a library consisting of over 3,300 motion pictures and a
small number of TV programs. In FY2012, Paramount distributed two theatrical titles under its
distribution arrangement with DreamWorks Animation SKG. In FY2011, Paramount distributed the
final two theatrical titles under its distribution arrangement with MVL Productions (Marvel), now a
subsidiary of the Walt Disney. Paramount also distributes motion pictures and other entertainment
content on digital versatile discs (DVDs) and Blu-ray discs, television, digital and other platforms in
the US and internationally.
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History
HISTORY
Viacom, Inc. (Viacom or “the company”) was originally formed after the spin-off from Columbia
Broadcasting System (CBS), which was established as a public company in 1971. In the late 1970s,
Viacom took over CBS' syndication division.
Viacom purchased Showtime in 1978 and combined it with the Movie Channel to form Showtime
Networks. The company formed a joint venture with Warner Communications, and Warner Amex
Cable Communications that resulted in the joint operation of both Showtime and the Movie Channel
in 1983. The company purchased MTV Networks in 1986. In the following year, National Amusements
acquired 83% of Viacom and during the same year, MTV expanded in Europe with the launch of
MTV Europe.
In 1991, Viacom acquired 50% stake in MTV Europe for $65 million. In 1994, the company merged
with Paramount Communications. In the 1990s, the company formed the Viacom Entertainment
Group, which included Paramount Motion Picture Group, Paramount Television and the Paramount
Stations Group. In 1996, MTV launched MTV2, a music network devoted to a diverse mix of music
videos. MTVN launched the Suite from MTV Networks in 1998, including digital channels MTV2,
MTV Indie, MTV Ritmo, MTV Rocks, VH1 Country, VH1 Smooth and VH1 Soul.
Viacom merged with CBS in 2000 and acquired 64.2% equity interest in Infinity Broadcasting. CBS'
cable networks, TNN and Country Music Television (CMT) joined the MTV Networks family of cable
channels. Paramount and CBS TV stations integrated into a single unit, the CBS Television Stations
Division. Paramount Parks joined the Viacom Entertainment Group. CBS Plus, the cross-media
sales and marketing unit, changed its name to Viacom Plus.
The company acquired BET Holdings II in 2001. BET Holdings operated Black Entertainment
Television (BET) and BET Jazz: the Jazz Channel. During the same year, BET launched digital
cable offerings, BET on Jazz: the Jazz Channel and BET International, new channels, BET Gospel,
BET Classic Soul and BET Hip-Hop. In 2002, Nickelodeon acquired Sesame Workshop's 50%
interest in Noggin for approximately $100 million and Noggin launched the N, a nighttime network
for teens. In the same year, MTV acquired the College Television Network (CTN).
In 2003, the company acquired Time Warner's 50% interest in Comedy Central. During the same
year, MTV Networks Europe acquired a 50% stake in French videogames channel, GameOne
through a partnership with Atari, a French media company.
In 2004, the company acquired the German VIVA Media, the German equivalent to MTV. In the
same year, the company acquired 75.8% of VIVA Media from 14 shareholders and acquired
SportsLine.com. The company's CTN was re-launched as mtvU in 2004. During 2004, Viacom sold
one of its radio stations to Spanish Broadcasting System (SBS) in return for a 10% stake in SBS,
which marked its entry into the US Hispanic radio market. The company acquired CBS Sacramento
affiliate, KOVR-TV 13 from the Sinclair Broadcast Group.
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In 2005, former Viacom’s Board of Directors approved the split of the company into two publicly
traded businesses, Viacom and CBS. In the same year, MTV networks acquired Neopets and
GoCityKids.com. Also during the year, the former Viacom sold Famous players, its Canadian based
theatre chain for approximately $400 million. In the same year, MTV networks acquired substantially
all the assets of GameTrailers, including the internet site, GameTrailer.com.
During the same year, MTV launched many services including MTV World brand with MTV Desi and
MTV Chi; LOGO, a television network for niche audiences; MTV Games, an in-house gaming division
that produced and marketed original video game titles; and broadband channels, including MTV
Overdrive, VH1's VSPOT, mtvU Uber, Comedy Central's Motherload, and Nickelodeon's TurboNick.
During the same year, MTV Networks acquired 97.8% of VIVA Media, Germany's 24-hour dedicated
and localized German language music station.
In 2006, the company acquired DreamWorks, a leading producer of live-action motion pictures and
TV programming. In the same year, Viacom acquired Xfire (www.xfire.com), a gaming and social
networking service, for approximately $112 million. The company also acquired remaining 58%
interest in BET.com. In 2006, the company acquired Atom Entertainment, a portfolio of four online
destinations for casual games, short films and animation, for approximately $200 million.
In the same year, Viacom acquired Harmonix Music Systems, the developer of the Guitar Hero video
game franchise and other music gaming titles. Additional acquisitions and investments completed
during 2006 include Quizilla.com, which operates a social networking website that features surveys,
games and advice for young teens; Y2M: Youth Media & Marketing Networks, a publisher of online
college campus newspapers; Caballero Television, which operates television stations that serve the
Hispanic community; and a controlling interest in Nickelodeon UK.
In 2007, Viacom joined the Joost (www.joost.com), the world's first broadcast quality internet television
service, as a key content partner to offer full range of brands and programming to consumers on
the innovative Joost distribution platform. In the same year, Viacom and Yahoo! formed a multi-year
partnership under which Yahoo! would serve as the exclusive provider of sponsored search and
contextual ads to all of Viacom's 33 broadband sites, including MTV.com, VH1.com, and
Nickelodeon.com.
In the same year, Viacom and the TV18 Group created a 50/50 joint venture operation in India,
Viacom-18. The strategic alliance includes TV, film and digital media content across numerous
brands to build India's leading multi-platform entertainment company. Subsequently, BET Networks,
a division of Viacom and Brightcove, an internet TV service provider, partnered to distribute
ad-supported internet video channels in the UK. In 2007, MTV Networks International (MTVNI) and
Apple entered into an agreement to distribute TV shows from MTV, Nickelodeon and Paramount
Comedy channels for purchase and download from the iTunes Store in the UK.
Also in 2007, Nickelodeon, Viacom Consumer Products and Imation launched Nickelodeon's Npower
brand, a consumer electronics product line. Also, in 2007, COMEDY CENTRAL and National Lampoon
entered into an agreement for the first broadcast-window premiere rights to a multi-picture package
of National Lampoon movies. Towards the end of the year, MTV Networks and AOL entered into an
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agreement to show clips from MTVN's music, kids and family, comedy and pop-culture brands on
AOL Video.
In 2008, BET Networks' BET Digital Media Group launched a vertical advertising network focused
on music, entertainment and lifestyle content relevant to the urban and African American communities.
In the same year, MTVN kids and family group acquired Babunga.com network of parenting sites
and integrated into Nickelodeon's ParentsConnect.com. Subsequently, Paramount Pictures created
mobile entertainment unit called Paramount Mobile Entertainment (PME) to develop mobile
entertainment and alternative distribution models for the studio. Also, in the same year,
Nickelodeon/MTVN kids and family group launched three mobile websites that provide easily
accessible information and resources to audiences on wireless devices through branded content
from Nickelodeon, the N and ParentsConnect.
During the same year, BET Networks partnered with Microsoft to offer BET programming content
on Xbox 360 through Xbox Live. Also, Viacom's MTVN Entertainment Group launched Atom.com,
a digital comedy network that distributes original programming across the internet, handheld devices,
gaming platforms, mobile phones and television.
In 2008, Paramount Pictures and Marvel Studios, a subsidiary of Marvel Entertainment entered an
agreement under which Paramount would distribute Marvel's next five self-produced feature films
on a worldwide basis. Subsequently, Nickelodeon launched a new pop culture online dashboard for
kids with UPickDaily.com, an online home base for kids to share, vote, poll and post about what they
are buzzing about at school or on the playground. Also, in 2008, BET expanded its international
reach with the launch of BET in Africa through the GTV agreement. At the end of the same year,
COMEDY CENTRAL re-launched Jokes.com, the premier online destination and home for stand-up
comedy.
In the following year, Paramount Pictures, a unit of Viacom extended its agreement with the Montecito
Picture and Cold Spring Pictures. In the same year, Nickelodeon launched iPhone and iTouch
applications in the Apple iTunes App Store, featuring content based on iconic television series
SpongeBob SquarePants, Dora the Explorer and iCarly. Subsequently, Paramount Pictures and
Thomson, a provider of services to content creators partnered to create a post production sound
facility on the Paramount Hollywood lot.
The company changed its fiscal year end from December to September in 2009. In the same year,
COMEDY CENTRAL acquired off-net rights to "30 Rock", Emmy Award-winning comedy series,
from NBC Universal Domestic Television Distribution. Subsequently, Spike TV and Total Nonstop
Action (TNA) Wrestling agreed to a new, three-year extension of their partnership that includes new
weekly installments of 'TNA: iMPACT!' and the addition of new original series of specials. Also, in
the same year, Target and MTV Networks, partnered to introduce a new online video ad unit called
"The Scrubber", a custom video player that allows advertisers to insert brand or product icons into
the playback timer and tell a marketing story that unfolds over the course of the viewing experience.
In the first quarter of 2010, Paramount Vantage acquired worldwide rights to the new film by Oscar
winning documentarian Davis Guggenheim and Participant Media. In the same quarter, the Ultimate
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Fighting Championship and Spike TV formed a new digital partnership and launched
UltimateFighter.com, an ad-supported website that features programming from all 10 seasons of
"The Ultimate Fighter", which premiered on Spike in 2005.
BET Networks acquired Debmar-Mercury's the Wendy Williams Show for a second season in the
US and agreed to air the talk show on its international networks in the UK, Africa and the Middle
East in 54 countries, in the second quarter of 2010. In the same quarter, MTV Networks, and Warner
Music Group (WMG) formed a multi-year partnership that strengthens MTV Music Group's position
in the digital music category while expanding WMG's artist-centered video strategy.
In the third quarter of 2010, MTV Networks acquired Social Express, a social gaming development
company, marking its entry into the social gaming space. In the same quarter, Nickelodeon acquired
the Winx Club TV rights for the US and the pay-TV rights for Latin America, Canada, the UK, Australia,
New Zealand and Benelux. Winx Club features the adventures of six magical fairies that are popular
with young girls around the world.The agreement also includes the co-development and co-production
of seasons five and six of the series.
Nickelodeon formed partnership with media content company, Chorion and the publisher, Frederick
Warne to develop and produce an animated preschool series based on the characters created by
Beatrix Potter in the series, the Tales of Peter Rabbit, in the last quarter of 2010. In the same quarter,
MTV Networks acquired the broadcast premiere rights to some of 2010's hit theatrical films from
NBC Universal Domestic Television Distribution. Subsequently, Viacom sold Harmonix Music Systems
to Harmonix-SBE Holdings, an affiliate of Columbus Nova.
In the first quarter of 2011, Universal Pictures International Entertainment (UPIE) and Paramount
Home Entertainment International (PHEI) signed an agreement that allows UPIE to distribute
Paramount product for home entertainment in Italy. In the same quarter, Spike TV acquired all 52
episodes of the globe-trotting television series, "Three Sheets".
Hulu and Viacom formed a new content partnership, in the first quarter of 2011. As per the terms of
the agreement, current full episodes and clips of "the Daily Show with Jon Stewart" and "the Colbert
Report" will be available on the free ad-supported Hulu.com service and through the Hulu Plus
subscription service. In the same quarter, the company acquired a minority interest in Rainbow
Group, privately-owned kids animation and consumer products company based in Italy.
In the first quarter of 2011, TV Land partnered with Woman's Day, the fourth largest magazine in
the US, for the network's comedy program "Hot in Cleveland." In the same quarter, MTV and
EXTREMEMUSIC, the production music arm of Sony/ATV launched HYPE PRODUCTION MUSIC:
a newly created, hybrid music production and licensing partnership. Subsequently, BET Networks
launched interactive TV applications for iPhone, iPod touch and iPad.
Nickelodeon launched Monkey Quest, a virtual world and massively multiplayer online game (MMOG)
featuring console-quality game play, in the second quarter of 2011. In the same quarter, MTV
Networks Entertainment Group (MTVNE), a division of Viacom, launched 345 Games, a new video
gaming arm of COMEDY CENTRAL and Spike TV.
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In the second quarter of 2011, Spike TV renewed its partnership with Microsoft for exclusive broadcast
coverage of the company's Xbox 360 E3 Media Briefing at the Electronic Entertainment Expo. In
the same quarter, Paramount Pictures, Twentieth Century Fox and Lightstorm Entertainment jointly
announced to re-release of the movie TITANIC. Subsequently, Paramount Digital Entertainment
launched movie applications for Windows Phone 7.
COMEDY CENTRAL and the New York Comedy Festival signed a three-year partnership extension
to provide the Festival’s stellar comedy line-up through COMEDY CENTRAL's multimedia platforms,
in the second quarter of 2011. In the same quarter, Nickelodeon launched Team Umizoomi Preschool
Math Kits. Subsequently, Nickelodeon and JAKKS Pacific signed a multi-territory master toy license
agreement for JAKKS Pacific to manufacture, distribute and market a line of toys and other products
based on the animated action and fantasy series, Winx Club. Also, in the same quarter, Nickelodeon
launched the first products from Victorious, Nickelodeon's live-action comedy series.
In the following quarter, Paramount Pictures launched Paramount Animation, an in-house animation
division. In the same quarter, United Negro College Fund (UNCF) partnered with BET to make
UNCF's UNCFAn Evening of Stars program. Subsequently, Nickelodeon partnered with Verizon
FiOS to offer SpongeBob SquarePants games widget.
Viacom and Cablevision Systems reached an agreement to resolve litigation filed in the Southern
District of New York related to Cablevision's Optimum applications, in the third quarter of 2011. In
the same quarter, Paramount Pictures and Indian Paintbrush jointly announced to co-produce Jason
Reitman's LABOR DAY. In the same quarter, TV Land acquired the broadcast rights for the Emmy
Award-winning comedy, "the Dick Van Dyke Show.”
In the following quarter, MTV World, a unit of Viacom, launched MTV Iggy, a multi-platform global
music brand connecting America with artists and pop culture phenomena trending around the world.
QIYI, a leading Chinese internet video company and Paramount Pictures entered into an online
distribution agreement for rights to Transformers: Dark of the Moon in China, in the fourth quarter
of 2011. In the same quarter, the company announced the transfer of its stock exchange listing to
the NASDAQ Global Select Market from the New York Stock Exchange. In the last quarter of the
same year, GameTrailers, the video destination for gaming entertainment and information, launched
a new Facebook video application, "GameTrailers Originals."
In February 2012, Nickelodeon announced a global broadcast acquisition with Classic Media and
Corus Entertainment's Nelvana for the new half-hour series, Life With Boys. In the same month,
COMEDY CENTRAL partnered with Running Press, a member of the Perseus Books Group to form
a joint publishing program. The joint publishing relationship will release its first title, a holiday-themed
novelty book from Denis Leary, in October 2012. Subsequently, Amazon.com signed a licensing
agreement with Viacom that will allow Amazon Prime members to instantly stream TV shows from
MTV, Comedy Central, Nickelodeon, TV Land, Spike, VH1, BET, CMT and Logo.
COMEDY CENTRAL reached a multi-year deal with Sony Picture Television to license the
critically-acclaimed comedy series, "Community", in March 2012. In the same month, Viacom
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International Media Networks and Vocento, the leading communications and multimedia group in
Spain, launched new PARAMOUNT CHANNEL in Spain.
In April 2012, COMEDY CENTRAL and the Bonnaroo Music and Arts Festival partnered to produce
an original one-hour compilation stand-up special at the festival. In the same month, Viacom and
WhoSay, a personal media management platform for high-profile film, television, music and sports
personalities, announced that Viacom Advertising Sales will serve as the exclusive sales force for
WhoSay, a selling inventory for the site.
MTV, Musica y Mas, the bilingual/bicultural entertainment destination for Latinos in the US, launched
its new blog, "Insight Tr3s", to further expand the knowledge bank on the bilingual/bicultural Latino
audience, in May 2012. In the following month, Paramount Pictures acquired the screen rights to
"THE DIVINERS," an upcoming novel from New York Times author, Libba Bray.
In July 2012, the company signed a long-term agreement to renew carriage with DIRECTV. In the
following month, COMEDY CENTRAL entered into an exclusive retail partnership with Urban Outfitters
to launch products from "The Daily Show with Jon Stewart," "The Colbert Report" And "Indecision
2012" in stores nationwide and on urbanoutfitters.com. In September 2012, Viacom and Monster,
a manufacturer of headphones and electronic accessories, entered into a global alliance to launch
a new audio brand, Monster DNA.
In the following month, AT&T U-verse TV customers got access to a lineup of full-length episodes
from BET, COMEDY CENTRAL, MTV, Nickelodeon, Spike and VH1 on demand, on the web. The
new online offering for AT&T U-verse TV customers marked the first "TV Everywhere" offering from
AT&T and Viacom. Customers may also have access to Viacom programming on U-verse.com and
U-verse apps for smartphones, tablets, and other devices. During the same month, Viacom and
Hulu, an online TV service, expanded their content partnership that will bring Nickelodeon
programming to the Hulu Plus service. Thereafter, Hulu Plus subscribers can access five recent
episodes of currently airing Nickelodeon live action and animated series.
In December 2012, Nickelodeon launched Scribble Hero, an arcade-style action game that was
made available for download on iOS devices.
In January 2013, Comedy Central and SiriusXM Radio, a radio broadcaster, entered into a multi-year
deal for COMEDY CENTRAL Radio, a 24/7 audio channel consisting of new stand-up and exclusive
performances from COMEDY CENTRAL’s library
In March 2013, Nickelodeon and Fuhu, entered into a multi-year deal to produce and distribute
Nickelodeon-themed tablet accessories and nabi Jr. tablets pre-loaded with the network's content.
Fuhu is the creator of the nabi tablet and is a designer, seller and innovator of consumer products
and services for children.
Subsequently in June 2013, Viacom and Twitter entered into a partnership to deliver social video
advertising campaigns around the most popular shows and biggest events throughout Viacom's
network portfolio, which includes MTV, VH1, CMT, Nickelodeon, COMEDY CENTRAL, TV Land,
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Spike and more. In the same month, COMEDY CENTRAL launched CC: Stand-Up, a free app for
iPhone and iPad, available exclusively on the App Store. This video App is a stand-alone extension
of COMEDY CENTRAL that brings comedy fans a new stand-up channel, a tool to discover new
comics and a platform for sharing comedic content.
In the following month, the company signed a multi-year licensing deal with Rubie's Costume, a
manufacturer of Halloween costumes and masquerade products, to develop and produce a line of
Halloween costumes and accessories and dress up products inspired by the Teenage Mutant Ninja
Turtles series. The new line will include Halloween costumes and accessories and dress up products
for infants, toddlers, kids and adults, as well as pet costumes. During the same month, COMEDY
CENTRAL launched CC:Stand-Up Direct, a new distribution platform that delivers unlimited streams
and downloads of uncut, uncensored stand-up specials, further expanding the multiplatform footprint
of the brand. Also in the same month, Nickelodeon and Activision Publishing, a wholly owned
subsidiary of Activision Blizzard, entered into a new global, multi-year agreement to develop and
publish video games featuring pop culture phenomenon, SpongeBob SquarePants.
Subsequently in September 2013, Nickelodeon and Clear Channel Media and Entertainment, a
media company in the US, launched Nick Radio. Nick Radio will feature music; guest DJ stints by
Nickelodeon stars, and Nick-branded entertainment and celebrity interviews. The station will stream
on Nick.com, iHeartRadio.com and the iHeartRadio digital app.
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Key Employees
KEY EMPLOYEES
Name
Job Title
Board
Philippe P. Dauman
President and Chief Executive
Officer
Executive Board
33450824 USD
Thomas E. Dooley
Chief Operating Officer
Executive Board
26298246 USD
Sumner M. Redstone
Executive Chairman and Founder
Executive Board
20417466 USD
Shari Redstone
Non Executive Vice Chair
Non Executive Board
340270 USD
George S. Abrams
Director
Non Executive Board
349377 USD
Alan C. Greenberg
Director
Non Executive Board
229145 USD
Robert K. Kraft
Director
Non Executive Board
229289 USD
Blythe J. McGarvie
Director
Non Executive Board
287157 USD
Charles E. Phillips, Jr.
Director
Non Executive Board
264188 USD
Frederic V. Salerno
Director
Non Executive Board
289068 USD
William Schwartz
Director
Non Executive Board
268030 USD
Deborah Norville
Director
Non Executive Board
Cristiana Falcone Sorrell
Director
Non Executive Board
Wade Davis
Chief Financial Officer and
Executive Vice President, Strategy
and Corporate Development
Senior Management
Van Toffler
President, Music and Logo Group
Senior Management
Doug Herzog
President, Entertainment Group
Senior Management
Robert Bakish
President and Chief Executive
Senior Management
Officer, Viacom International Media
Networks
Cyma Zarghami
President, Nickelodeon
Senior Management
Debra Lee
Chairman and Chief Executive
Officer, BET Networks
Senior Management
Carl D. Folta
Executive Vice President, Corporate Senior Management
Communications
Michael D. Fricklas
Executive Vice President, General
Counsel and Secretary
Senior Management
Brad Grey
Chairman and Chief Executive
Officer, Paramount Pictures
Corporation
Senior Management
DeDe Lea
Executive Vice President,
Government Affairs
Senior Management
James Bombassei
Senior Vice President, Investor
Relations
Senior Management
Viacom, Inc.
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Compensation
6779876 USD
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Viacom, Inc.
Key Employees
Name
Job Title
Board
Scott M. Mills
Executive Vice President, Human
Resources and Administration
Senior Management
Viacom, Inc.
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Compensation
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Viacom, Inc.
Key Employee Biographies
KEY EMPLOYEE BIOGRAPHIES
Philippe P. Dauman
Board: Executive Board
Job Title: President and Chief Executive Officer
Since: 2006
Age: 58
Mr. Dauman has been the President and Chief Executive Officer at Viacom since 2006. Prior to
joining the company, he was the Co-Chairman and Chief Executive Officer at DND Capital Partners,
a private equity firm specializing in media and telecommunications investments, from 2000 to 2006.
Prior to co-founding DND Capital Partners, Mr. Dauman served in several positions at Viacom,
including as the Deputy Chairman and Executive Vice President. He is a Director at National
Amusements, Lafarge and the Kipp Foundation. Mr. Dauman is also a Member of the Academy of
Motion Picture Arts and Sciences, a Member of the Business Roundtable and serves on the Executive
Committee of the NCTA, the Board of Trustees for the Paley Center for Media, the Board of Trustees
of the North Shore-Long Island Jewish Health System, the Executive Committee of the Lenox Hill
Hospital and the Board of Trustees and Dean’s Council of Columbia University Law School.
Thomas E. Dooley
Job Title: Chief Operating Officer
Since: 2010
Age: 56
Mr. Dooley has been the Chief Operating Officer at Viacom since 2010. He previously served as
the company’s Chief Financial Officer. Prior to joining Viacom, Mr. Dooley was the Co-Chairman
and Chief Executive Officer at DND Capital Partners that he co-founded, from 2000 to 2006. Prior
to that, he held various corporate and divisional positions at the former Viacom, which he first joined
in 1980, including the Deputy Chairman, Member of its Executive Committee and the Executive Vice
President, Finance, Corporate Development and Communications.
Sumner M. Redstone
Job Title: Executive Chairman and Founder
Since: 2006
Age: 89
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Viacom, Inc.
Mr. Redstone has been the Executive Chairman and Founder at Viacom since 2006. He is the
Founder of the company. Mr. Redstone also serves as the Executive Chairman of the Board at CBS.
Previously, he served as the Chief Executive Officer at Viacom from 1996 to 2005 and as the
Chairman. Mr. Redstone has been the Chairman of the Board at National Amusements since 1986,
its Chief Executive Officer since 1967 and also served as its President from 1967 through 1999. He
served as the first Chairman of the Board at the National Association of Theatre Owners and is
currently a Member of its Executive Committee.
Shari Redstone
Board: Non Executive Board
Job Title: Non Executive Vice Chair
Since: 2006
Age: 58
Ms. Redstone has been the Non-Executive Vice Chair at Viacom since 2006. She also serves as
the Non-Executive Vice Chair of the Board at CBS. Ms. Redstone has also been the President at
National Amusements since 2000, and prior to that, served as its Executive Vice President. She
practiced law from 1978 to 1993, with her practice including corporate law, estate planning and
criminal law. Ms. Redstone is a Member of the Board of Directors and Executive Committee at the
National Association of Theatre Owners; the Co-Chairman and Co-Chief Executive Officer at
MovieTickets.com; and the Chairman and Chief Executive Officer at CineBridge Ventures.
George S. Abrams
Job Title: Director
Since: 2006
Age: 80
Mr. Abrams has been a Director at Viacom since 2006. He is an Attorney at the law firm of Winer
and Abrams in Boston since 1969. Prior to that, Mr. Abrams served for three years as the General
Counsel and Staff Director at the US Senate Judiciary Committee for Refugees. He is a Trustee at
the Boston Museum of Fine Arts and a Fellow and/or Director at a number of other arts and education
related boards and foundations. Mr. Abrams is also a Director at National Amusements and Sonesta
International Hotels.
Alan C. Greenberg
Job Title: Director
Since: 2006
Age: 85
Viacom, Inc.
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Viacom, Inc.
Mr. Greenberg has been a Director at Viacom since 2006. He is the Vice Chairman Emeritus at
JPMorgan Chase. Previously, Mr. Greenberg served as the Chairman of the Executive Committee
at Bear Stearns from 2001 until Bear Stearns was acquired by JPMorgan Chase in 2008. He also
served as the Chairman of the Board at Bear Stearns from 1985 to 2001, and as its Chief Executive
Officer from 1978 to 1993.
Robert K. Kraft
Job Title: Director
Since: 2006
Age: 71
Mr. Kraft has been a Director at Viacom since 2006. He is the Chairman and Chief Executive Officer
at Kraft, which includes the New England Patriots, New England Revolution, Gillette Stadium,
Rand-Whitney, and International Forest Products. Mr. Kraft has been the owner of the New England
Patriots for the past 10 seasons, and has served as the Chairman at NFL’s Finance Committee
since 1998. He is also a Director at the Dana Farber Cancer Institute, the Federal Reserve Bank of
Boston and the New England Patriots Charitable Foundation.
Blythe J. McGarvie
Job Title: Director
Since: 2007
Age: 56
Ms. McGarvie has been a Director at Viacom since 2007. She has been the President at Leadership
for International Finance since 2003. From 1999 through 2002, Ms. McGarvie served as the Executive
Vice President and Chief Financial Officer at BIC. Prior to that, she served as the Senior Vice
President and Chief Financial Officer at Hannaford Brothers from 1994 to 1999. Ms. McGarvie is
also a Director at Accenture and the Travelers Companies.
Charles E. Phillips, Jr.
Job Title: Director
Since: 2006
Age: 53
Mr. Phillips has been a Director at Viacom since 2006. He has been the Chief Executive Officer at
Infor Global Solutions since 2010. Previously, Mr. Phillips was the President at Oracle from 2003 to
2010 and served as a Member of its Board of Directors and Executive Management Committee from
2004 to 2010. Prior to Oracle, he served at Morgan Stanley’s Institutional Securities Division from
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Viacom, Inc.
1994 to 2003, where he was responsible for analyzing the enterprise software industry. Mr. Phillips
served as a Director at Morgan Stanley from 2006 to 2010.
Frederic V. Salerno
Job Title: Director
Since: 2006
Age: 69
Mr. Salerno has been a Director at Viacom since 2006. He is the retired Vice Chairman and Chief
Financial Officer at Verizon Communications, a position he held from 2000 to 2002. Prior to that,
Mr. Salerno served as the Vice Chairman and Chief Financial Officer at Bell Atlantic (Verizon’s
predecessor) from 1997. Prior to the merger of Bell Atlantic and NYNEX, he served as the Vice
Chairman, Finance and Business Development, at NYNEX from 1994 to 1997. Mr. Salerno was the
Vice Chairman of the Board at NYNEX and the President at NYNEX Worldwide Services from 1991
to 1994. He is also a Director at Akamai Technologies, CBS, IntercontinentalExchange and Popular.
William Schwartz
Job Title: Director
Since: 2006
Age: 79
Mr. Schwartz has been a Director at Viacom since 2006. He has been a Counsel at the law firm,
Cadwalader, Wickersham & Taft since 1988. Mr. Schwartz served as the Vice President for Academic
Affairs (the Chief Academic Officer) at Yeshiva University from 1993 to 1998, and has been the
University Professor of Law at Yeshiva University and the Cardozo School of Law since 1991. He
was the Dean at Boston University School of Law from 1980 to 1988, and a Professor of law at
Boston University from 1955 to 1991. Mr. Schwartz is an Honorary Member at the National College
of Probate Judges. He formerly served as the Chairman at UST and was the Chairman at Boston
Mayor’s Special Commission on Police Procedures and a Member of the Legal Advisory Board at
New York Stock Exchange.
Deborah Norville
Job Title: Director
Since: 2013
Ms. Norville has been a Director at Viacom since March 2013. She is the Anchor at Inside Edition,
a newsmagazine. Prior to Inside Edition, Ms. Norville served as a Correspondent and Anchor at
CBS News programs including Street Stories, 48 Hours and the CBS Evening News. Previously,
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Viacom, Inc.
she anchored NBC News at Sunrise and was a News Anchor and Co-Host of NBC’s Today program.
Ms. Norville is a Director at the Broadcasters Foundation of America and National Co-Chair at the
Duke University Parents Committee and has been active in a number of other charities, including
the Mother's March of Dimes, the Girl Scout Council of Greater New York, and the Rita Hayworth
Alzheimer’s Association.
Cristiana Falcone Sorrell
Job Title: Director
Since: 2013
Ms. Sorrell has been a Director at Viacom since March 2013. She is a Senior Adviser to the Chairman
at World Economic Forum. Ms. Sorrell also serves as the Principal Consultant, Office of Outreach
and Partnership, at the Inter-American Development Bank. Prior to joining the World Economic
Forum in 2004, she held positions at the International Labour Organization and Shell. Ms. Sorrell is
a Member at the Italian National Press Guild, a Board Member at Internews, a media development
not-for-profit organization, and a Member of the Advisory Board at RyTV, an internet broadcasting
platform. She is also a Member of the Board of Advisers at Tufts University’s Friedman School of
Nutrition Science and Policy.
Wade Davis
Board: Senior Management
Job Title: Chief Financial Officer and Executive Vice President, Strategy and Corporate Development
Since: 2012
Mr. Davis has been the Chief Financial Officer at Viacom since 2012 and has been the Executive
Vice President, Strategy and Corporate Development at the company since 2009. Previously, he
served as the Executive Vice President, Strategy and Corporate Development and Senior Vice
President of Strategy, Mergers and Acquisitions at the company. Prior to joining Viacom, Mr. Davis
was an Investment Banker in the technology and media sectors for more than a decade. Most
recently, he was the Managing Director, Co-Head of Investment Banking and Head of Mergers and
Acquisitions at ThinkEquity Partners. Prior to ThinkEquity Partners, Mr. Davis was the Managing
Principal at Lazard Venture Advisors and the Vice President at Lazard Freres in their Technology,
Media and Telecommunications M&A Group. Previously, Mr. Davis was one of the Founding Members
at Wasserstein Perella & Company’s Technology M&A Group in San Francisco.
Van Toffler
Job Title: President, Music and Logo Group
Since: 2004
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Viacom, Inc.
Mr. Toffler has been the President, Music and Logo Group at Viacom since 2004. He is responsible
for all music services, including MTV, MTV2, VH1, VH1 Classic, CMT and CMT Pure Country; their
affiliated screens and digital services; and Logo. Prior to that, Mr. Toffler served as President at MTV
and MTV2 since 2000. In 1999, he oversaw the re-launch of MTV2 and helped guide the acquisition
of CTN: College Television Network in 2002, re-launching it as mtvU, the network for college
students.
Doug Herzog
Job Title: President, Entertainment Group
Since: 2006
Mr. Herzog has been the President, Entertainment Group at Viacom since 2006. Previously, he was
the President at COMEDY CENTRAL from 1995 to 1998 and again in 2004. Between 2001 and
2004, Mr. Herzog served as the President at USA Network and prior to that, as the President of
Entertainment at FOX Broadcasting during 1998–2000. He joined Viacom in 1984 as the News
Director, Music News at MTV, and served in a variety of positions leading up to the Executive Vice
President of Programming for the network and President at MTV Productions.
Robert Bakish
Job Title: President and Chief Executive Officer, Viacom International Media Networks
Since: 2011
Mr. Bakish has been the President and Chief Executive Officer, Viacom International Media Networks
at Viacom since 2011. In addition, he serves as the Chairman of the Board at Viacom 18. Prior to
his current position, Mr. Bakish was the President at MTV Networks International. He previously
served as the Executive Vice President, Operations at Viacom Enterprises, and prior to that as the
Executive Vice President and Chief Operating Officer, MTV Networks Advertising Sales. Prior to
joining MTV Networks, Mr. Bakish was the Senior Vice President, Planning, Development and
Technology at Viacom. Before joining Viacom in 1997, he was a Partner at Booz Allen & Hamilton
in its Media and Entertainment practice.
Cyma Zarghami
Job Title: President, Nickelodeon
Since: 2006
Ms. Zarghami has been the President, Nickelodeon at Viacom since 2006. She began her career
at Nickelodeon in 1985.
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Viacom, Inc.
Debra Lee
Job Title: Chairman and Chief Executive Officer, BET Networks
Ms. Lee is the Chairman and Chief Executive Officer, BET Networks at Viacom. Prior to that
appointment, she was the President and Chief Operating Officer since 1996. Ms. Lee joined BET
as the Vice President and General Counsel in 1986 after serving more than five years as an attorney
at Steptoe & Johnson, a corporate law firm. Prior to that, she served as a law clerk to the late
Honorable Barrington Parker of the US District Court for the District of Columbia.
Carl D. Folta
Job Title: Executive Vice President, Corporate Communications
Since: 2006
Age: 55
Mr. Folta has been the Executive Vice President, Corporate Communications at Viacom since 2006.
Prior to that, he served as the Executive Vice President, Office of the Chairman at the company.
Previously, Mr. Folta was the Executive Vice President, Corporate Relations at the former Viacom
since 2004. Prior to that, he served as the Senior Vice President of Corporate Relations and the
Vice President of Corporate Relations. Mr. Folta held various communications positions at Paramount
Communications from 1984 until joining Viacom in 1994.
Michael D. Fricklas
Job Title: Executive Vice President, General Counsel and Secretary
Since: 2006
Age: 52
Mr. Fricklas has been the Executive Vice President, General Counsel and Secretary at Viacom since
2006. Prior to that, he was the Executive Vice President, General Counsel and Secretary at the
former Viacom since 2000. From 1998 to 2000, Mr. Fricklas served as the Senior Vice President,
General Counsel and Secretary at the former Viacom. Prior to 1993, he was the General Counsel
of a multinational business in the mining industry and prior to that was in private practice specializing
in mergers and acquisition, public and private corporate finance and technology law.
Brad Grey
Job Title: Chairman and Chief Executive Officer, Paramount Pictures Corporation
Since: 2005
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Viacom, Inc.
Mr. Grey has been the Chairman and Chief Executive Officer, Paramount Pictures Corporation at
Viacom since 2005. Prior to joining Paramount, he was the Chairman at Brillstein-Grey Entertainment,
which includes the companies Brillstein-Grey Management, Brad Grey Television and Plan B, a
motion picture production company formed by a partnership with Brad Pitt and Jennifer Aniston.
DeDe Lea
Job Title: Executive Vice President, Government Affairs
Since: 2006
Age: 47
Ms. Lea has been the Executive Vice President, Government Affairs at Viacom since 2006. Before
that, she was the Senior Vice President of Government Affairs at the former Viacom. Previously,
Ms. Lea served as the Vice President of Government Affairs at Belo from 2004 to 2005, and as the
Vice President of Government Affairs at the former Viacom from 1997 to 2004.
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Viacom, Inc.
Major Products and Services
MAJOR PRODUCTS AND SERVICES
Viacom, Inc. (Viacom or “the company”) is one of the leading global entertainment content companies.
The company's key products and services include the following:
Cable networks
Digital media
Film production
Music publishing
Brands:
BET
Centric
CMT
Colors
COMEDY CENTRAL
Game One
Logo
MTV
MTV2
MTVU
Nick at Nite
Nick Jr.
Nickelodeon
Nicktoons
Palladia
Paramount Channel
Paramount Comedy
Spike TV
TeenNick
TMF
Tr3s
TV Land
VH1
VH1 Classic
VIVA
Filmed entertainment:
Paramount Pictures
Paramount Vantage
Paramount Classics
MTV Films
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Viacom, Inc.
Major Products and Services
Nickelodeon Movies
Insurge Pictures
Viacom, Inc.
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Viacom, Inc.
Revenue Analysis
REVENUE ANALYSIS
Overview
The company recorded revenues of $13,887 million during the financial year ended September 2012
(FY2012), a decrease of 6.9% compared to FY2011. For FY2012, the US, the company's largest
geographic market, accounted for 70.6% of the total revenues.
Viacom generates revenues through two business segments: media networks (65.6% of the total
revenues during FY2012) and filmed entertainment (34.4%).
Revenues by segment*
In FY2012, the media networks segment recorded revenues of $9,194 million, an increase of 0.5%
over FY2011.
The filmed entertainment segment recorded revenues of $4,820 million in FY2012, a decrease of
18.6% compared to FY2011.
*The difference in the total revenues is because the consolidated revenues do not include eliminations
which are part of revenues by segment.
Revenues by geography
The US, Viacom's largest geographical market, accounted for 70.6% of the total revenues in FY2012.
Revenues from the US reached $9,804 million in FY2012, a decrease of 7% compared to FY2011.
Europe accounted for 17.4% of the total revenues in FY2012. Revenues from Europe reached $2,423
million in FY2012, a decrease of 6.3% compared to FY2011.
All other accounted for 12% of the total revenues in FY2012. Revenues from all other reached $1,660
million in FY2012, a decrease of 7.2% compared to FY2011.
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Viacom, Inc.
SWOT Analysis
SWOT ANALYSIS
Viacom, Inc. (Viacom or “the company”) is one of the leading global entertainment content companies.
The company provides the entertainment content through TV, motion picture, internet and mobile
platforms. Viacom has a strong programming network and brand image that provides the company
a competitive advantage over its peers. However, intense competition in the cable networks, motion
picture and digital industries will adversely impact the company's market position and revenue
structure.
Strengths
Weaknesses
Strong programming network
Extensive customer reach
Effective allocation of resources as
compared to peers
Overdependence on the US
Law suits hamper reputation and will entail
large cash outflows
Unpredictable filmed entertainment
business
Opportunities
Threats
Poised to benefit from growing mobile video
and social media market
Growth in online gaming market
Positive trends in TV advertising
Unauthorized distribution of content
Delivering popular programming gains more
prominence
Increased leverage
Strengths
Strong programming network
Viacom is one of the leading global entertainment content companies with a strong programming
network. The company offers content across TV, motion picture, online and mobile platforms.
Viacom’s portfolio of cable networks include MTV, VH1, CMT, Logo, Nickelodeon, Nick Jr., TeenNick,
Nicktoons, Nick at Nite, Neopets, COMEDY CENTRAL, TV Land, Spike TV, Tr3s, BET and CENTRIC,
among others. In addition, Viacom has strong brand equity. The company’s core brands are deeply
connected to the audiences they serve.
Many non-traditional players who enter TV broadcasting and other related markets choose to partner
with Viacom due to its content leadership. For instance Sony stroked a deal with the company to
launch internet TV. Prior to this, Amazon entered into a multi- year deal with Viacom, to stream
Viacom’s shows to its customers. There are other unconventional players such as Apple and Intel
who are all set to enter this market and Viacom with its popular programming network is well balanced
to reach out to a larger audience, catering to both conventional and unconventional players.
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Viacom, Inc.
SWOT Analysis
Diverse programming portfolio also provides a competitive advantage to the company. Through
Nickelodeon, Viacom offers children programming which is a key differentiator for the company. The
strength of its children’s programming is reflected from the fact that it emerged as the most sought
after TV genre in Amazon’s Prime Instant Video and previously in several other broadcasters’
networks. The company’s MTV network and VH1 network cater to audiences of teen and middle
aged audiences. Strong programming networks provides the company a competitive advantage
over its peers.
Extensive customer reach
Viacom has strong customer reach. Viacom Media Networks and its international operations reach
approximately 700 million households in approximately 160 countries. For instance, MTV; MTV2;
VH1; VH1 Classic; and CMT and CMT Digital; and Logo and Logo Digital; which are part of media
networks business, reached 98 million, 79 million, 97 million, 60 million, 91 million, and 50 million
domestic TV households respectively, in September 2012. In addition, MTV has a reach of
approximately 600 million households in more than 160 countries and territories worldwide through
its 41 MTV branded channels. MTV.com averaged approximately 11 million monthly unique visitors
and VH1 Digital averaged approximately three million monthly unique visitors during the same period.
The Nickelodeon and Nick at Nite properties reached approximately 99 million domestic television
households in September 2012. Nickelodeon reached approximately 300 million households in more
than 130 countries and territories through its 79 Nickelodeon branded channels. Similarly, Nick Jr,
TeenNick, and Nicktoons reached approximately 75 million, 72 million, and 61 million domestic TV
households, respectively, during the same period. Moreover, NickJr.com and TeenNick.com had
3.9 million and 1.6 million monthly unique visitors.
Further, COMEDY CENTRAL, Spike TV, TV Land, BET, and CENTRIC, also part of the company’s
media networks business, reached approximately 98 million, 98 million, 96 million, 91 million, and
46 million domestic TV households, respectively, in September 2012. Its Comedycentral.com,
SPIKE.com, and BET.com averaged 6.9 million, two million, and three million monthly unique visitors,
respectively. Paramount Pictures is the leading producer and distributor of motion pictures and has
a library consisting of over 3,300 motion pictures and a small number of TV programs.
Viacom has a large customer base, which enhances its market share and indicates the popularity
of its TV shows. Growing popularity of its shows increases the appeal the company’s programs enjoy
among the affiliates and advertisers, two primary revenue streams for the company. Thus, extensive
customer reach enhances Viacom's brand image and provides competitive edge over its peers.
Effective allocation of resources as compared to peers
The company has high return on equity (ROE) and return on assets (ROA) compared to its peer
companies. The company's competitors such as CBS and Time Warner have lower ROE when
compared to Viacom. CBS’ ROE was 15.4%, while that of Time Warner’s was 10.1% for the fiscal
year ended December 2012. Comparatively, Viacom’s ROE was 26.6% in FY2012. Higher ROE
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Viacom, Inc.
SWOT Analysis
compared to its peers indicates that the company is using the shareholders' money efficiently and
that it is generating high returns for its shareholders.
Moreover, CBS and Time Warner have less ROA when compared to Viacom. For the fiscal year
ended December 2012, CBS' ROA was 5.9% significantly less than Viacom. Similarly, Time Warner’s
ROA was 4.4% during the same period. Comparatively, the ROA at Viacom was 8.9% in FY2012.
High ROA indicates that the company has been deploying its assets in an efficient manner and
indicates the management efficiency in allocation of resources.
Weaknesses
Overdependence on the US
Viacom is highly dependent on the US for its revenues. Although the company has presence in more
than 160 countries and territories across North America, South America, Europe and Asia Pacific,
it generates majority of its revenues from the US market. Viacom generated about 70.6% of its total
revenues from the US in FY2012, which does not truly reflect its global presence. It demonstrates
geographic concentration, which increases its business risk by making it vulnerable to economic
and political uncertainties in the particular market. Concentrating on matured markets like the US,
which is witnessing sluggish economic growth, increases the business and country specific risks to
the company and restricts its growth opportunities compared to its competitors.
Law suits hamper reputation and will entail large cash outflows
The company is a party to law suits some of which have the potential to adversely impact its reputation
as well as its operational flexibility. Paramount Pictures, a subsidiary of the company, along with
three other Hollywood studios (News Corp's 20th Century Fox, Comcast Corp's Universal Pictures
and Sony Corp's Sony Pictures) was sued in the Los Angeles Superior Court. A lawsuit was filed
against them in January 2013, by two directors and a representative for late actor Charles Bronson
claiming what could be up to hundreds of millions of dollars in back royalties on films distributed to
the home video market. Subsequently in February 2013, the company was accused by Cablevision
Systems in an antitrust lawsuit of forcing it to pay for over a dozen low-rated cable networks in order
to gain access to Viacom's more popular channels. Such lawsuits tarnish the company’s brand image
and can also adversely affect its margins and cashflows.
Unpredictable filmed entertainment business
Filmed entertainment, by the nature of its business, is dependent on releasing popular movies to a
large extent. This is very uncertain as it is difficult for the company to gauge the performance of a
film amid changing customer preferences. Revenues from the filmed entertainment segment
accounted for 35% and 40% of the company’s revenues for FY2012 and FY2011, respectively. The
company’s performance in filmed entertainment has been sluggish in the recent times. The filmed
entertainment segment recorded revenues of $4,820 million in FY2012, a decrease of 18.6%
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Viacom, Inc.
SWOT Analysis
compared to FY2011. This decline continued into FY2013. For nine months ended June 2013, the
revenues from this segment declined by about 18% compared to the same time period in FY2012.
The declining revenues from the filmed entertainment segment and the unpredictability of the
turnaround could prove to be a drag on the company’s growth prospects,
Opportunities
Poised to benefit from growing mobile video and social media market
The global mobile video services market witnessed a rapid growth in the last few years. According
to industry estimates, at least 40% of smartphone users will use mobile video services in 2016, up
from the current 29%. Moreover, the growing mobile video consumption is expected to exceed 693
billion minutes by 2015.The market is forecasted to be driven by increasing availability of sophisticated
mobile phones, introduction of economical data plans by service providers, and increasing popularity
of social networking sites among mobile users. In addition, the global mobile video subscriber base
is expected to exceed 900 million by 2016.The company offers mobile content to its target audiences
on mobile devices across all major service providers. The company’s significant presence and the
growing mobile video services market would provide Viacom an opportunity in increase its revenues
and market share in future.
Viacom is also poised to benefit from the growing social media market. The company stroked a deal
with Twitter in order to create new ad impressions for sponsors for the MTV Video Music Awards.
MTV's US handles have around 13.3 million followers, which the sponsors can complement by
tweeting the videos from their own accounts. Twitter will be the paid distribution channel by promoting
the posts to users. Both Twitter and Viacom agreed to sell packages of promoted tweets to sponsors
for the show, who will see their brands attached to videos posted to Twitter before, during and after
the show broadcast. Moreover, social media ranked third (39%) as a source of show discovery,
behind promos (54%) and word of mouth (50%). Thus, the company’s deal with Twitter is one of the
foremost to leverage the popularity of social media. Viacom tapped into an increasingly popular
emerging trend by tapping into the social media market.
Growth in online gaming market
Online gaming market has been growing at a rapid pace. According to industry estimates, the overall
worldwide revenue for online games delivered through PC or a video game console is expected to
reach approximately $35 billion by 2018, up from $21 billion in 2012. The emergence of social
networking sites like Facebook is expected to expand the distribution reach of PC games on a global
basis.
The company has been increasing its focus on online gaming services in recent years. Viacom’s
Nickelodeon Games Group offers classic arcade games and puzzles, social games, sports and other
games, as well as casual games sites like Shockwave.com and AddictingGames.com and several
Android and iPhone applications featuring Nick, Nick Jr. and AddictingGames content. Nickelodeon’s
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Viacom, Inc.
SWOT Analysis
portfolio of gaming sites averaged 7.5 million monthly unique visitors in September 2012. In addition
to gaming, Nickelodeon Games offers virtual worlds, including Monkey Quest, Neopets and Petpet
Park that target online youth and allow members to create a virtual identity and participate in a variety
of customized gameplay. Viacom’s strong focus on the games segment and the growing end market
will increase the revenues of the company in future.
Positive trends in TV advertising
According to the industry estimates, TV continues to dominate the advertising landscape being the
largest and most effective medium for ad spending in the US. TV advertising will continue to witness
steady growth at compounded annual growth rate of 5.1% during 2013-17. With growing popularity
and improved ratings for its channels such as Nickelodeon, the company is poised to benefit from
positive trends in the advertising revenues. The 14% increase in revenues during third quarter of
FY2013, was attributed to enhanced advertising revenues among other reasons. Positive trends in
the TV advertising spend will enhance the company’s top-line growth.
Threats
Unauthorized distribution of content
The company along with other media companies is affected by increased unauthorized distribution
of content. A ruling against Viacom in a law suit with respect to the same that company brought
against YouTube has been rejected by the court highlighting the fact that curbing such unauthorized
distribution is very difficult. In 2007, Viacom filed a copyright infringement suit and demanded that
YouTube pay $1 billion in damages. The dispute hit the roof as leading companies, including Viacom,
were struggling to deal with the disruption of digital media and trying to decipher how to restrict the
unauthorized distribution of their content. Eventually, the federal judge ruled that YouTube had not
violated the company's copyright even though YouTube users were permitted to post unauthorized
video clips from some of Viacom's most popular shows, which included Comedy Central's "The Daily
Show with Jon Stewart" and Nickelodeon's "SpongeBob SquarePants.” This is because YouTube
was safeguarded from copyright infringement claims by a safe-harbor provision in the Digital
Millennium Copyright Act. Thus, Viacom's lawsuit was dismissed, and additionally, the company
was ordered to pay some of YouTube's costs. The law suit highlights the difficulty in protecting the
copyright with the popularity of digital media continues to increase.
Delivering popular programming gains more prominence
With the emergence of linear TV and new entrants such as Apple, Sony and Amazon, in the industry,
Viacom’s content has to be popular for it to gain contracts. Most of the companies are working to
offer ala-carte programming in place of subscription based charge for bundled programming. This
increases the business risk for Viacom as its programming has to be constantly relevant and popular.
This is a business transformation compared to now where the company will be able to sell both
Viacom, Inc.
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Viacom, Inc.
SWOT Analysis
popular and unpopular programming as a bundle. As the trend of ala-carte programming becomes
popular, the company’s business risk increases.
Increased leverage
The company has been engaged in share buyback and seems to be using debt for the purpose.
This increased the leverage ratio to the 2.75-3 times range from the previous target of two times.
The company allegedly is engaged in share buy-back to offset the declining revenue trend, according
to a leading rating agency that downgraded Viacom amid the share buy-back program. The rating
rationale further indicates that the company has been investing insufficiently towards programming
and innovation and is instead diverting resources to share buyback which will result in the short term
appeasement of the shareholder community. Therefore, increasing credit risk at Viacom and the
diversion of resources to share buyback may hamper the company’s growth potential.
Viacom, Inc.
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Viacom, Inc.
Top Competitors
TOP COMPETITORS
The following companies are the major competitors of Viacom, Inc.
Time Warner Inc.
CBS Corporation
Sony Corporation
The Walt Disney Company
Discovery Communications, Inc.
Scripps Networks Interactive, Inc.
Viacom, Inc.
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Viacom, Inc.
Company View
COMPANY VIEW
A joint statement by Sumner M. Redstone, the Executive Chairman and Founder, and Philippe P.
Dauman, the President and Chief Executive Officer at Viacom is given below. The statement has
been taken from the company’s Stockholder Letter for FY2012.
Dear Fellow Stockholder,
Viacom delivered a solid performance in fiscal year 2012, as the company engaged and entertained
audiences on every platform across the world. Throughout the year, we invested in great creative
content, managed costs judiciously to grow margins, and ultimately delivered value to you, our
stockholders.
Across our media networks and motion pictures divisions, our focus remains on developing content
that resonates with audiences worldwide, while striving for operational excellence in every corner
of our business. From MTV to Nickelodeon to BET and beyond, our media networks are key drivers
of the cultural conversation for audiences who seek out our shows and stars on-air, online, on mobile,
and through social media. Paramount Pictures delivered a blockbuster hit in Mission: Impossible –
Ghost Protocol in fiscal 2012 and, through careful and strategic management, succeeded in achieving
greater profit margins.
As we continue to invest in great content, Viacom will continue to seize on every opportunity to
monetize that programming on every screen. By keeping a tight rein on costs and maintaining
financial strength, we continue to generate significant free cash flow and make good on our
commitment to return capital to you through dividends and share repurchases. In fiscal 2012, we
repurchased a total of $2.8 billion in stock and increased our quarterly dividend 10% to $0.275 per
share. In fiscal 2013, we are on track to buy back at least $2.5 billion of stock.
Financial Results
We manage our business aggressively to seize opportunities, monetize across media platforms,
and drive margins, which fueled bottom line growth and significant increases in earnings per share
for fiscal 2012. Viacom’s revenues for the full year were $13.89 billion, down 7% from the previous
year, reflecting higher Media Networks revenues which were more than offset by lower Filmed
Entertainment revenues. Full-year adjusted operating income grew 1% to $3.9 billion, principally
due to higher revenues from our Media Networks segment. Full-year adjusted net earnings from
continuing operations attributable to Viacom rose 1% to $2.26 billion and full-year adjusted diluted
earnings per share from continuing operations increased 11% to $4.21 per diluted share, reflecting
the impact of the company’s ongoing share repurchase program.
Great Content for Every Screen
Viacom, Inc.
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Viacom, Inc.
Company View
At Viacom, creating content is what we do. Our media networks invest steadily in original
programming, including more new episodes of hit shows and more new franchises. The relentless
challenge of creating fresh compelling content for multiple audiences will inevitably result in ratings
variables, as we experienced in certain networks in fiscal 2012. But we also know that by investing
in new original content, enhancing and empowering our creative teams, applying our deep audience
insights, maximizing scheduling opportunities across screens, and leveraging our unrivaled strength
in social media, we can consistently drive viewership and ratings growth over time. Already in this
new 2013 fiscal year, we are seeing signs of sequential ratings improvement at several of our
networks.
Our young audiences remain among the earliest adopters of emerging media technologies, and we
continue to create content experiences across new media platforms in ways that strengthen our
audience connections and our bottom line. Across our media networks, we are looking toward the
future and making strategic decisions – particularly in the areas of programming development,
marketing and distribution – that will position us as a leader in a truly convergent multiplatform world.
And we are working aggressively – both internally and with best-in-class partners – to ensure that
the correct tools exist to accurately measure viewership of our programming across screens.
As always, we aggressively pursue every sensible opportunity to monetize our media networks,
through advertising, distribution, and consumer products. Although television ratings ebb and flow,
our investment in content keeps our brands strong and vital for advertisers seeking our highly targeted
audiences and for distributors developing their product offerings.
Fiscal 2012 revenue increases in our Media Networks resulted from 11% growth in worldwide affiliate
revenue, as we captured substantial value for our content with existing and emerging distributors
alike, which more than offset a 5% decline in worldwide advertising revenues. Fees from traditional
and emerging distribution platforms remain an important and consistent area of growth. In fiscal
2012, we struck a long-term agreement with DIRECTV, securing a healthy rate of increase, while
also renewing and expanding our agreement with Hulu. Additionally, we entered into a deal to provide
EPIX films through the Amazon Prime subscription streaming service.
MTV continues to connect with its audience through pioneering reality television and strong scripted
series. In its core millennial 12-to-34-year-old audience, MTV scored a number of the top series in
cable, including Teen Mom, Awkward, Snooki & JWoww, Teen Wolf, and, more recently, Catfish:
The TV Show, which was the number one new cable series of 2012 in the demo.
Actions to reinvigorate Nickelodeon are yielding results, with viewership stabilizing and a continued
infusion of new original programming coming to air. Nickelodeon has seen improvements across
the schedule, most notably reclaiming its leadership of Saturday mornings among kids 2-to-11,
thanks to new episodes of SpongeBob SquarePants and the long-awaited debut of Teenage Mutant
Ninja Turtles, which ranked as the highest-rated animated launch on the network since 2009. The
strength of Teenage Mutant Ninja Turtles, in addition to the success of its consumer products line
and the anticipation for the forthcoming live action feature from Paramount, give us great
encouragement that Nickelodeon has a lasting and lucrative hit on its hands.
Viacom, Inc.
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Viacom, Inc.
Company View
On Comedy Central, Tosh.0 and Workaholics performed well with the network’s young male audience.
Comedy Central’s newest hit Key & Peele solidified its place in the cultural zeitgeist and in late night,
The Daily Show with Jon Stewart and The Colbert Report remained strong, extending their leadership
in late night with men 18-to-34. Comedy Central is increasing its original programming significantly,
including the launch of six new series in the first half of the 2013 calendar year.
VH1 delivered a strong performance in fiscal 2012, as the network increased its viewership in
primetime among adults 18-to-49. Monday nights on VH1 remain particularly strong with female
viewers. During the summer, VH1 was the number one network with women 18-to-49 for thirteen
consecutive weeks, thanks to hits Love & Hip Hop: Atlanta and Single Ladies.
Across our networks, we are delivering more original programming than ever to attract audiences
and drive ratings. BET introduced new series including Keyshia & Daniel: Family First, while returning
hit series The Game and Let’s Stay Together, and giving its iconic 106 & Park a refreshed look and
new host. TV Land finished fiscal 2012 with a solid quarter, with total day ratings up 5% year over
year in the network’s core 25-to-54 demo. Spike continues to build out its lineup of originals, including
Bar Rescue and Ink Master. In November, CMT delivered the highest-rated season premiere in its
history with the season two debut of Redneck Island.
Expanding our Brands Internationally
Viacom is also creating ever-greater opportunities internationally, where the company is extremely
well positioned. We’re fortifying the position of our core Nickelodeon and MTV brands, expanding
with Comedy and the Paramount Channel, and building our consumer products business. This is a
big venue for future growth.
Viacom International Media Networks continued to drive affiliate sales revenues through organic
growth, new channel launches, and digital distribution. In fiscal 2012, we made great progress in
driving the reach and success of our adult-focused business abroad – a key priority for International.
Ratings at Comedy Central increased nearly 30% internationally for the full year, and Comedy
launched across several markets in Asia.The launch marks a major milestone in our effort to establish
Comedy as our third truly global brand, alongside MTV and Nickelodeon. The Paramount Channel
also continues to be a ratings success at launch, reaching 24 million viewers each month – more
than half of the Spanish television audience.
Delivering Box Office and Profitability
Paramount Pictures continues to demonstrate significant long-term progress in building multiple
franchises and enhancing its margins. In fiscal 2012, the studio actively managed its release schedule
to give its films maximum global visibility in theaters, even as it aggressively managed costs behind
the screen – all of which resulted in higher profit margins. Paramount delivered a runaway blockbuster
hit in Mission: Impossible – Ghost Protocol, which reinvigorated the Tom Cruise franchise by earning
nearly $700 million at the box office worldwide – making it the highest grossing installment in the
series. A new Mission: Impossible film is currently in development.
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Viacom, Inc.
Company View
In 2013, Paramount has as diverse and promising a slate as we’ve seen from any studio in recent
years, including star-driven tentpole films, prestige films, and the type of highly targeted, high-margin
releases it pioneered with the Paranormal Activity franchise. This includes the return of key franchises
such as Star Trek Into Darkness and G.I. Joe – Retaliation and the launch of new tentpoles, including
Hansel and Gretel: Witch Hunters, Pain and Gain and World War Z.
Inspiring Audiences
Viacom’s world-class brands and creative content give the company an enormous platform to engage
and entertain, but also to inspire our audiences to take action in their communities and across the
world. Through each of our media brands, we educate and empower our viewers to create change
and build awareness of the social issues and causes. In recognition of global commitment to social
responsibility, which we call Viacommunity, Viacom was named to Bloomberg’s 2012 “Civic 50” list
of the top civically minded companies.
Viacom activated its audiences through more than 50 different initiatives worldwide in 2012. Among
them were MTV’s “Power of 12” and “BET Vote 2012,” two campaigns aimed to inform and engage
voters in the 2012 U.S. presidential election. For the seventh straight year, Nickelodeon’s “Worldwide
Day of Play” encouraged children to get up, get active, and stem the tide of childhood obesity. Spike
continued its commitment to veteran employment with its “Hire A Vet” campaign and Comedy
Central’s Night of Too Many Stars raised nearly $4 million to benefit a variety of autism schools
services and programs throughout the United States.
With our headquarters and many of our employees based in the New York metropolitan area, Viacom
was deeply affected by Hurricane Sandy and stepped forward quickly to aid in the recovery from
the deadly storm. The company committed $1 million to relief efforts, including $500,000 to the
Mayor’s Fund for New York City, and an additional $500,000 to on-the-ground organizations. Many
of our brands supported the effort in various ways, including MTV, which partnered with Architecture
for Humanity on the Restore the Shore fundraiser, and VH1, which partnered with Tunnel to Towers
on efforts in New Jersey and Staten Island. Additionally, the 12-12-12 concert for Hurricane Sandy
relief aired on several Viacom networks.
Viacom delivered significant value for shareholders in fiscal 2012. We will continue to build shareholder
value as we invest in content on every screen – on our television channels around the globe, on the
web, on tablets and mobile devices, and on the big screens in theaters worldwide. We will continue
to connect marketers with our audiences, and advance distribution through innovative and fruitful
partnerships. At the box office, Paramount Pictures will continue to bring movie-going audiences a
deep and diverse slate. We look forward to sharing the fruits of our success with you in 2013, and
for many years to come.
Thank you for your ongoing investment and support.
Viacom, Inc.
© MarketLine
Page 37
Viacom, Inc.
Locations and Subsidiaries
LOCATIONS AND SUBSIDIARIES
Head Office
Viacom, Inc.
1515 Broadway
New York City
New York 10036
USA
P:1 212 258 6000
http://www.viacom.com
Other Locations and Subsidiaries
BET Acquisition Corp.
Delaware
USA
Black Entertainment Television LLC
Columbia
USA
Comedy Partners
New York
USA
MTV Networks Company
Delaware
USA
MTVN Online Inc.
Delaware
USA
N.V. Broadcasting (Canada) Inc.
CAN
Nickelodeon Animation Studios Inc.
Delaware
USA
Nickelodeon International Limited
GBR
Paramount British Pictures Limited
GBR
TNN Productions, Inc.
Delaware
USA
Viacom, Inc.
© MarketLine
Page 38
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Viacom, Inc. - Columbia Institute for Tele

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