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Tag: Tom Freston

  • Former Viacom CEO Freston to receive $84 mn package

    Former Viacom CEO Freston to receive $84 mn package

    MUMBAI: A little over a month has passed since Tom Freston quit US media conglomerate Viacom. He will receive $84.8 million in severance, accrued salary and restricted stock payments.

    Media reports state that he also reached a deal with Viacom to serve as an advisor to the company for the next three years, for which he will receive an additional $1 million per year, an arrangement he can cancel with two week’s notice.

    As had been reported last month by Indiantelevision.com Redstone’s dumping a loyal lieutenant who built MTV into a global entertainment powerhouse was over Freston’s failure to aggressively chase the social networking site MySpace. News Corp bought MySpace for $ 580 million which has turned out out to be a great price. Redstone was also looking for a more entrepenurial CEO. He probably felt that longtime board member Philippe Dauman and Thomas Dooley would be more suited.

  • Tom Freston quits; Philippe Dauman named new Viacom CEO

    Tom Freston quits; Philippe Dauman named new Viacom CEO

    MUMBAI: Barely eight months after Viacom chairman Summer Redstone split the global media powerhouse into two units — CBS Corp and Viacom Inc — one of his anointed CEOs has announced his resignation.

    Viacom CEO Tom Freston’s decision, which was sudden and unexpected, comes at a time when the company’s stock price was falling (down 20 per cent since January when the split from CBS became effective). The key properties under Freston’s charge were MTV Networks, which he literally created and built, as well as Paramount Pictures.

    Viacom announced today that the 60-year-old Freston was being replaced as president and CEO by Philippe P. Dauman.

    The Viacom board also named Thomas E Dooley to the newly created position of senior executive vice president and chief administrative officer. Dauman will report to Redstone, while Dooley will report to Dauman.

    Both Dauman, 52, and Dooley, 49, have previously held a number of executive positions at the company, and both currently serve on Viacom’s board.

    The official release quoted Freston as saying: “I’ve spent over 26 years at Viacom, 18 of them with Summer. With my exceptional colleagues, we built a worldwide powerhouse of brands and businesses, literally from scratch. I leave many good friends knowing that they have an unmatched track record, a great plan going forward and incredible abilities to execute on it in this digital age.”

    Official comments apart, it is clear that Freston was forced out by Redstone. Newswire service Associated Press quoted Redstone as telling analysts on a conference call that the board wanted a more entrepreneurial and aggressive management team that would have a closer relationship with investors.

    Investors didn’t seem too thrilled by the news though, sending the company stock down nearly 6 per cent in early trading.

    But far more than the slip-sliding stock price, what probably had the biggest hand to play in Redstone’s dumping a loyal lieutenant who built MTV into a global entertainment powerhouse was over Freston’s failure to aggressively chase MySpace, the youth social networking phenomenon that has taken the world by storm.

    It irks Redstone no end that a site that was a perfect fit as far as MTV’s youth demographic is concerned was snapped up from right under Viacom’s nose by Rupert Murdoch’s News Corporation for what in hindsight has turned out to be a steal at $ 580 million.

    “We bought a lot of little things and you can add it all up, but it’s not MySpace,” Redstone has been quoted as saying of the start-up that had been “sitting out there for a long time” before News Corp bought it out.

    Freston’s departure comes less than two weeks after Viacom announced it was parting ways with Hollywood superstar Tom Cruise’s production company, ending a 14-year relationship. Redstone’s stated reason for dumping Cruise was that his “erratic” behaviour made the association an unviable one.

    Viacom’s brands include MTV Networks (MTV, VH1, Nickelodeon, Nick at Nite, Comedy Central, CMT: Country Music Television, Spike TV, TV Land, Logo and more than 120 networks around the world), BET Networks, Paramount Pictures, Paramount Home Entertainment, DreamWorks and Famous Music.

  • Tom Freston quits; Philippe Dauman named new Viacom CEO

    Tom Freston quits; Philippe Dauman named new Viacom CEO

    MUMBAI: Barely eight months after Viacom chairman Summer Redstone split the global media powerhouse into two units — CBS Corp and Viacom Inc — one of his anointed CEOs has announced his resignation.

     

    Viacom CEO Tom Freston’s decision, which was sudden and unexpected, comes at a time when the company’s stock price was falling (down 20 per cent since January when the split from CBS became effective). The key properties under Freston’s charge were MTV Networks, which he literally created and built, as well as Paramount Pictures.
     

     

    Viacom announced today that the 60-year-old Freston was being replaced as president and CEO by Philippe P. Dauman. The Viacom board also named Thomas E Dooley to the newly created position of senior executive vice president and chief administrative officer. Dauman will report to Redstone, while Dooley will report to Dauman.

     

    Both Dauman, 52, and Dooley, 49, have previously held a number of executive positions at the company, and both currently serve on Viacom’s board.
    The official release quoted Freston as saying: “I’ve spent over 26 years at Viacom, 18 of them with Summer. With my exceptional colleagues, we built a worldwide powerhouse of brands and businesses, literally from scratch. I leave many good friends knowing that they have an unmatched track record, a great plan going forward and incredible abilities to execute on it in this digital age.”

     

    Official comments apart, it is clear that Freston was forced out by Redstone. Newswire service Associated Press quoted Redstone as telling analysts on a conference call that the board wanted a more entrepreneurial and aggressive management team that would have a closer relationship with investors. Investors didn’t seem too thrilled by the news though, sending the company stock down nearly 6 per cent in early trading.

     

    But far more than the slip-sliding stock price, what probably had the biggest hand to play in Redstone’s dumping a loyal lieutenant who built MTV into a global entertainment powerhouse was over Freston’s failure to aggressively chase MySpace, the youth social networking phenomenon that has taken the world by storm.

     

    It irks Redstone no end that a site that was a perfect fit as far as MTV’s youth demographic is concerned was snapped up from right under Viacom’s nose by Rupert Murdoch’s News Corporation for what in hindsight has turned out to be a steal at $ 580 million.

     

    “We bought a lot of little things and you can add it all up, but it’s not MySpace,” Redstone has been quoted as saying of the start-up that had been “sitting out there for a long time” before News Corp bought it out.

     

    Freston’s departure comes less than two weeks after Viacom announced it was parting ways with Hollywood superstar Tom Cruise’s production company, ending a 14-year relationship. Redstone’s stated reason for dumping Cruise was that his “erratic” behaviour made the association an unviable one.

    Viacom’s brands include MTV Networks (MTV, VH1, Nickelodeon, Nick at Nite, Comedy Central, CMT: Country Music Television, Spike TV, TV Land, Logo and more than 120 networks around the world), BET Networks, Paramount Pictures, Paramount Home Entertainment, DreamWorks and Famous Music.

  • Viacom takes full ownership of MTV Japan

    Viacom takes full ownership of MTV Japan

    MUMBAI: US network MTV has agreed to acquire the remaining interest in joint venture MTV Japan from private equity firm H&Q Asia Pacific (H&QAP). This will give MTV a 100 per cent ownership in MTV Japan.

    The acquisition will be MTV’s largest in the Asia-Pacific region and will enable the broadcaster to accelerate growth in Japan and facilitate cross-pollination of innovations across the region and worldwide.

    In addition to the MTV Japan joint venture, MTV currently owns and operates Nickelodeon and the digital media brand Flux in the market. Upon completion of the deal, MTVN will combine MTV Japan with Nickelodeon and Flux into one cohesive business where the assets of each brand can be optimised across the entire operation. Prior to this agreement, MTV held a minority stake in MTV Japan.

    MTV’s parent Viacom president and CEO Tom freston says, “Japan is a huge and important market with a very advanced digital infrastructure. By taking sole ownership of MTV Japan we can now seamlessly operate all of our companies there on a multi-platform basis, putting us on a path to significantly grow our Japanese business.”

    MTV US chairman and CEO Judy McGrath says, “This deal represents an important step forward in our strategy to drive international growth. Japan is one of the most dynamic media markets in the world, and we are now positioned to lead the Asia-Pacific region in terms of delivering innovative entertainment content to young adult consumers across all platforms.”

    H&QAP chairman Dr. Ta-lin Hsu says, “The success of MTV Japan underscores the acceptance of the brand and its importance across emerging economies in Asia. At H&Q Asia Pacific, we are proud to have played an integral role in helping MTV Japan establish a leading market position.

    “This transaction demonstrates our ability to migrate consumer brands to the Asia-Pacific region.”

    H&QAP says that it was instrumental in bringing the MTV brand to Japan in 2001. H&QAP acquired Japan’s music channel Vibe from Pioneer in 2000 and subsequently created a new joint venture partnership with MTV that became MTV Japan in 2001.

    Capturing the potential growth in Japan’s cable
    and satellite TV industry and seizing the emerging Internet & mobile opportunities by leveraging MTV’s strong brand in cable and satellite TV, MTV Japan was created to provide multi-platforms for audiences and sponsors.

  • MTV and Nickelodeon to take on larger role at Paramount

    MTV and Nickelodeon to take on larger role at Paramount

    MUMBAI: Viacom Inc.s has announced that MTV and Nickelodeon will become full labels under the Paramount Motion Picture Group (PMPG) as part of a new structure designed to deepen their already successful track record with their core target audiences.

    The two former production companies, which previously operated as on-lot producers, will now join several other labels under PMPG’s umbrella, including Paramount Pictures, DreamWorks SKG, Paramount Vantage and Paramount Classics.

    “After successful 12-year stints as production companies at Paramount, we are going to upgrade MTV and Nick to full movie label status,” says Viacom president & CEO Tom Freston.
    “This will expand their role at Paramount, will better leverage their considerable talent and marketing capabilities, and will allow for smoother day to day management on the lot with strong connections back to the core brands. This move plays perfectly to our company’s unique strengths and will surely increase the positive momentum that we’re seeing at Paramount under the leadership of Brad and his team.”

    “MTV and Nickelodeon are two of the strongest brands in entertainment reaching families and young adults,” says Paramount Pictures Corporation chairman & CEO Brad Grey. “We look forward to great films and a great future with these two new labels at the Paramount Motion Picture Group.”

    “In partnership with Paramount, this new model represents a great opportunity to build on the growing success we’ve experienced making movies over the last decade,” adds MTV Networks chairman & CEO Judy McGrath. “We believe that together we can take these brands to the next level, attract the best talent and material across genres, and really tap into our strong relationships with kid, teens, young adults and families around the globe.”

    Additionally, Paramount and MTV Networks named veteran producer Scott Aversano President of MTV Films and Nick Movies, giving him responsibility for film development, production and acquisitions for the two film labels. Aversano will work on the lot, reporting to Paramount Pictures president Gail Berman. On all image- and brand-related matters for these pictures, he will also report to MTV Networks Music Group president Van Toffler and Nickelodeon and MTV Networks Kids and Family Group president Cyma Zarghami, states an official release.

    Aversano will assume his new position effective immediately, transitioning from his current role as an independent producer for Paramount Pictures. Prior to his producing deal with Paramount Pictures, Aversano spent more than seven years with producer Scott Rudin, most recently as president of Production, the release adds.

    “MTV and Nickelodeon are household names with audiences in every corner of the world,” says Aversano. “I’m excited to embark on this new challenge to continue bringing movies to the marketplace that utilize Viacom’s unique strengths in targeted demographics.”

    MTV Films and Nick Movies will continue to release films targeted to their respective demographics; with Nick Movies releasing animated and family films, and MTV Films focusing on comedies, documentaries, urban fare and horror films for teens and young adults.

  • Viacom, Adobe forge alliance to deliver web, mobile content

    Viacom, Adobe forge alliance to deliver web, mobile content

    MUMBAI: US media conglomerate Viacom and Adobe Systems have announced a strategic alliance to develop and deliver Viacom’s branded content using the Adobe Engagement Platform.

    Through this agreement, Adobe will become Viacom’s preferred technology provider for rich media authoring tools and interactive online video solutions. This will enable Viacom to deliver content from its television, motion picture and digital properties to online and mobile audiences in compelling ways. The two companies will also work together in developing new media applications leveraging Viacom’s exclusive content and using Adobe’s next-generation developer tools and ubiquitous cross-platform client software.

    The Adobe Engagement Platform is a versatile foundation for capturing and holding audiences’ attention through more active and effective applications and media. Through the combined reach of the Adobe Reader and Adobe Flash Player clients, which are installed on more than 600 million connected PCs and devices worldwide, the Platform enables businesses to connect with customers, no matter which medium they choose.

    Viacom president and CEO Tom Freston says, “This partnership with Adobe is an important step towards ensuring that our company has the most robust and state of the art online and mobile video applications. We are very excited to be working so closely with Adobe, which is a real innovator with a great track record”.

    Viacom will utilise Flash video as an interactive online video solution and provide Viacom-branded content to mobile phone handsets via FlashCast™ channels. Flash video delivers secure, high-quality seamless video experiences. FlashCast is a flexible client-server solution that effectively delivers rich, intuitive branded experiences on mobile devices. Using Adobe technology, Viacom will also develop entirely new applications leveraging content from Viacom properties including MTV, Comedy Central, Spike TV and Nickelodeon.

    Adobe CEO Bruce Chizen says, “Adobe and Viacom share a vision for how to bring Viacom’s world-class programming and content to online and mobile audiences in innovative ways. This relationship and the Adobe Engagement Platform will accelerate Viacom’s ability to create and deliver new kinds of digital entertainment across different mediums, regardless of which operating system, browser or device viewers are using. Our Engagement Platform is continuing to gain momentum as a powerful means of reaching and connecting with consumers on their terms, anytime, anyplace.”

  • MTV charts a Viacom growth path for India

    MTV charts a Viacom growth path for India

    MUMBAI: Freeing of cash flow and focus. That primarily is what the split of Viacom into two entities at the beginning of the year means in practical terms for the MTV Networks India team headed by Amit Jain.

    What Jain has before him is a five-year growth plan that sees India contributing “significantly” to the global revenues of Viacom Inc. That Viacom president and CEO Tom Freston is an “Indophile” seems to be a huge plus as far as Jain is concerned, particularly because India, South America and Europe (in that order) are seen as the key growth markets for the media conglomerate over the next five years.Questioned as to how and where he saw revenues coming considering that music channels have been steadily losing share of voice and mind in the broadcast space, Jain had this to offer.

    According to Jain, broadcast would remain the key revenue source for his network in India but its share would go down to two thirds in the course of the next five years. The remaining one third revenues will come from new media platforms like mobile and broadband and also from the movies business (Paramount’s acquisition of Dreamworks will mean significant ramp ups on the animation side as well, particularly as India is seen as a strong outsource hub).
    MTV BRAND TO BE LEVERAGED

    The three channels that MTV has launched in India will pretty much set the template as far as the network’s broadcast script unfolds.

    First there is Brand MTV, which will be at the centre of a slew of undertakings ranging from market activation, creative solutions, youth understanding, client branding. The central premise of all this is that “Viacom brand solutions can be devised and tailored to unique brand needs”.

    NICK TO GET MAJOR PUSH

    From a long term channel growth perspective, it is Nick that will provide the momentum, not MTV. And while Jain admits that the kids channel in his network, despite early mover advantage, has singularly failed to make an impact, he believes that is all about to change. And sooner rather than later.

    The first task, according to Jain, is to get back to the basics and get the programming, scheduling, packaging and distribution on track. Once these issues have been sorted out and “cleaned up”, then budgets for driving the channel forward will not be an issue, he asserts.

    The fact of the matter though is that a home grown channel like UTV’s Hungama and an international powerhouse like Disney, despite having entered the Indian market years after Nick first made its debut, have all gone ahead. So its going to require a committed and sustained effort for Nick to be anywhere in the reckoning. Whether Viacom will seriously show Nick the money is the moot point.

    VH1 WILL ULTIMATELY BE A DTH STORY

    It’s been 18 months since international lifestyle and music channel Vh1, which targets an older TG, launched in India and the management is more than satisfied with its performance, asserts Jain. Vh1 is on target both as regards advertising and distribution revenues, he points out. “By the end of the year (Viacom has a January to December fiscal) Vh1 will hit break even,” says Jain.

    But Jain does admit that Vh1 and other niche offerings from the MTV Networks stable like Comedy Central, CMT: Country Music Television, Spike TV and the like can only offer any real returns if they are on addressable platforms. For these channels therefore, it will be the rollout of DTH in the country that will likely determine their arrival.

    MOVIES AND NEW MEDIA

    Jain’s reference to the movies ties in with what Freston had to say while speaking at the Ficci Frames media convention in Mumbai earlier this year. Which was that Viacom was looking to co-produce films in India instead of merely exporting its films in to the country through its partner United International Pictures (UIP).

    The India movies picture remains a hazy one at present though, considering that about the only products of note have been the spoofs dished out by MTV’s movie making unit (and aptly titled) Fully Faltoo Films. Its most recent offering Ghoom, which was a spoof on last year’s action hit Dhoom from the Yash Raj Films banner, only serves to emphasise the quirky nature of MTV India’s movie offerings.

    As for mobile and broadband, it will depend again on bandwidth capacities that telecom players in particular will be able to roll out.

    While MTV Asia Pacific has been able to enter into a collaboration with Korean multimedia developer Wizmax to launch a customizable on-demand music and entertainment broadband and mobile community platform in Korea called MTV BoomBox, something similar in India looks to be a while away.

    Having said that, it is MTV BoomBox that will serve as a model for customisable MTV platforms in the broadband and wireless content services arena in India as well.

  • Viacom acquires online game service for $102 million

    Viacom acquires online game service for $102 million

    MUMBAI: With a view to let Viacom and its MTV Networks unit connect online gamers, Viacom has acquired Xfire, a Silicon Valley company that makes free instant messenger software for computer game players.

    Owner of MTV Networks, Nickelodeon and the Paramount movie studios, Viacom said it will buy Xfire for $102 million in a bid to dominate the youth market on the Internet as it has on television.

    Social networking and online gaming sites are two of the hottest investment areas for top U.S. media companies as they try to hold on to younger consumers dividing their time between the Internet and traditional outlets like television.

    As part of MTV Networks, Xfire will be better able to maximize its advertising revenues through more aggressive marketing, greater global penetration and comprehensive integration with the company’s other digital and cable properties that address the gaming demographic.

    Launched two years ago in California, Xfire has 4 million registered members who use its software. Its 1 million active users average 91 hours per month, with an average session length of over three hours. The ad-supported application supports hundreds of the latest PC games and provides social networking, instant messaging and information for online gamers.

    Viacom’s chief executive Tom Freston said. “It’s a wonderful component of our overall digital strategy, particularly on the gaming front. Our key audiences are and probably will remain kids, teens, young adults–we want to be anywhere these audiences are. On both a strategic and an economic level, this is a terrific deal for Viacom. Xfire is far and away the leading PC gaming communications and community platform, has outstanding management, and is a perfect fit with our growing digital businesses at MTV Networks. It’s a bull’s eye against our young audiences.”

    Freston said Viacom continues to look at other Internet properties as potential acquisitions, mostly deals valued much less than $1 billion, and said further purchases were possible this year. At the same time, he said, Viacom is investing in building up entertainment channels it already owns into new formats for its audience.

    MTV last year acquired NeoPets.com, a site that allows users to invent and care for virtual pets. Rival News Corp. purchased social networking site MySpace.com as well as gaming company IGN Entertainment.

    Xfire’s services are advertising based and its features will be incorporated into MTV’s online properties. The company’s technology also allows users to share such entertainment as their favorite music videos, lending itself well to distribute video from MTV.

    Xfire has a distinct combination of tools, including:

    > Friend List for Gamers – Users can see when their gamer friends are online and what games they are playing.

    > One-Click Join – Users can see what games their friends are playing and use the one-click join feature to play alongside their friends instantly.

    > Xfire In-Game Messaging – Xfire users can send and receive instant messages while playing in many games without having to minimize or leave the game.

    > Stats Tracking – Through automatically updated player profiles, Xfire displays what games users are playing and how many hours they have played them.

    > File Downloads – Xfire’s file download system delivers demos, patches, trailers, and other files to users via a closed peer-to-peer distribution system.

    > Voice Chat – Allows gamers to talk to each other over a private peer-to-peer chat network.

    “Online gaming is an intensely social phenomenon, with millions of young adults around the globe interacting constantly. Xfire is the leading gamer community platform, and we look forward to integrating its services and user base into our multiplatform strategy at MTV Networks, which already includes assets like Neopets, GameTrailers, iFilm and more,” said MTV Networks CEO Judy McGrath.

    McGrath said MTV would seek to expand Xfire’s base regionally, particularly in countries with ardent gaming communities like Japan and Korea. MTV will also promote the community network, possibly with plugs on its television shows and Internet sites.

  • MTV Networks Asia & Motorola to launch digital entertainment platform ‘Mobbed’

    MTV Networks Asia & Motorola to launch digital entertainment platform ‘Mobbed’

    MUMBAI: MTV Networks Asia in collaboration with Motorola, a company involved in wireless and broadband communications, is set to launch a digital entertainment platform ‘Mobbed’.

    Targeting the youth, `Mobbed’ will be available on mobile, on-air and online from tomorrow (1 April). The entertainment platform will be available to Asia-Pacific youths spanning across seven countries – India, Australia, Indonesia, Malaysia, Philippines, Singapore and Thailand.

    At a recent Ficci Frames in Mumbai, Viacom CEO Tom Freston said the company would be ramping up its digital media initiatives.

    Mobbed is the first-ever digitally focused integrated platform MTV Networks Asia has embarked on, the company said in a release. It will feature everything from free downloads to opportunities to control the storylines of ongoing animated segments.

    The various mobbed icons features include Motoalert, Mob Squad, Mobtage, besides contest, games and blogs.

    Mobbed, the on-air show, will be fronted by local MTV VJs. In India, MTV VJ Nauheed will be fronting the show.

    In Singapore, Malaysia and Philippines, MTV VJ Max, a new member of the MTV VJ family, will host the programme .MTV VJ Nathan (Australia), MTV VJ Cathy (Indonesia) and MTV VJ Tye (Thailand) will provide audience with the latest Mobbed updates weekly on the respective channels.

    Motoalert will not only provide Mobbers with the latest news, gossips, downloads and activities, but also focus on a new artist each month, allowing the Mobbers with “full-access” and knowledge of this act.

    “Mobbed reinforces MTV’s commitment to connect with our audience on every platform possible. Not only do we create fun and cool branded content that can be downloaded easily at the click of a button, such as the Mob Squad mobile animated series, but we also allow for user-generated content so youth can express themselves and take over MTV via the cutting-edge MMS to TV platform – Mobtage,” commented MTV Networks Asia Pacific president Nigel Robbins. “This expanded development is testimony to the success we have enjoyed with Motorola. With Motorola’s technology and personalization intelligence and MTV’s widespread influence on youth, Mobbed will empower Asian youth to further interact in the wireless world.”

    We are extremely excited about the Mobbed property and our relationship with MTV Networks Asia. MTV helps Motorola to re-energize our brand image and gain greater resonance with our youth mobile users,” commented Neil Stewart, Marketing Director of Motorola Mobile Devices Business, High Growth Markets. “With the launch of Mobbed by MTV and Motorola, we will be providing an even more creative and innovative platform for youth to get branded entertainment via their mobile screens,” he added.