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Tag: Viacom

  • DirecTV signs deal for Viacom’s new jazz channel

    DirecTV signs deal for Viacom’s new jazz channel

    MUMBAI: US media conglomerate Viacom’s subsidiary Bet is launching a jazz channel Bet J.

    Bet has signed a deal with US pay-TV platform DirecTV for carriage. The broadcaster says that jazz, the purest and oldest form of American music, has both chronicled and celebrated the African-American journey. Today jazz is seen, heard and felt in a number of related genres including blues, soul, R&B, Caribbean and neo-soul music.

    Bet chairman and CEO Debra L. Lee says, The African-American community looks to Bet to reflect the culture, and in doing so they have come to expect innovation and diversity in programming under our Bet Networks brand. We are happy to respond and to evolve to meet their needs.

    Bet Digital Networks executive VP and GM Paxton Baker says, Our new chapter under Bet J will be even more exciting, enticing and multicultural. In fact, the J in our new network name is now more indicative of the complete musical and cultural Journey rather than only jazz.

    DirecTV is launching Bet J to continue its tradition of providing the most exciting and unique programming for its customers. Bet J is available on Channel 330 on DirecTVs Total Choice Plus programming package. MTV Networks negotiated this carriage agreement as part of its affiliate sales and marketing representation of Bet Networks.

    With the DirecTV launch, Bet J has built a total distribution platform that reaches approximately 21 million homes. In addition to DirecTV, other distributors already carrying Bet J, will now offer the revamped channel for viewers include Charter Communications, Cablevision, Comcast, Cox Communications and Time Warner Cable.

  • Viacom’s Q1 revenues up 12 per cent to $2.37 bn

    Viacom’s Q1 revenues up 12 per cent to $2.37 bn

    MUMBAI: US media conglomerate Viacom has reported a 12 per cent rise in revenues at $2.37 billion for the first quarter ended 31 March 2006.
    Eight per cent of the revenue increase was attributable to the acquisition of DreamWorks on 31 January 2006. The growth in revenues reflects a seven per cent increase in the cable networks segment, and a 25 per cent rise in the entertainment segment, including DreamWorks.

    Ad revenues, which accounted for 36 per cent of total revenues in the quarter, increased three per cent versus first quarter last year, while affiliate fees, representing 21 per cent of total revenues, increased by nine per cent.

    Feature film exploitation accounted for 34 per cent of total revenues, an increase of 26 per cent. Ancillary revenues, which accounted for nine per cent of total revenues for the quarter ended 31 March 2006, increased 14 per cent versus 2005 first quarter results.

    In the cable networks segment, US channels revenues were up six per cent. This was partially offset by a decline in international ad revenues of 13 per cent due principally to lower ad spending and change in channel format in the first quarter of this year in Germany.

    Affiliate fees were up nine per cent in the first quarter of 2006 with subscriber increases and rate increases both contributing to the growth. Subscriber increases were led by distribution growth at domestic channels including Digital Suite, MTV2, Tempo and Noggin, which added an aggregate of over 40 million subscribers.

    In addition Logo, which launched on 30 June 2005, now has 20 million subscribers. Rate increases were strongest among MTV Networks core channels, led by Nickelodeon and MTV. Ancillary revenues were up 15 per cent in the first quarter of 2006, driven primarily by a 36 per cent increase in home video/DVD sales, higher syndication fees resulting from the availability of South Park as well as other licensing and merchandising revenues contributing to the improved performance versus 2005.

    Operating income in the cable networks segment rose by eight per cent to $621.1 million in the first quarter of 2006 from $577.5 million in the first quarter of 200. Higher revenues were partially offset by a seven per cent increase in operating expenses.

    The increase in operating expenses primarily reflected higher programming costs across domestic channels for shows including The Daily Show and The Colbert Report which air on Comedy Central; acquired movies and Fresh Baked Video Games at Spike; Next, Making the Band and Laguna Beach at MTV; Miss America Pageant on CMT and Lil’ Kim, Countdown to Lockdown and CollegeHill at BET.
    Increases for these shows were partially offset by the non-renewal of the WWE package at Spike and the ending of Osbournes and Newlyweds – Nick and Jessica on MTV.

    Home entertainment revenues increased by $48.5 million, or 13 per cent to $421.8 million, inclusive of DreamWorks library titles contribution of $74.4 million. Other home video releases for the first quarter 2006, such as Hustle & Flow, Yours, Mine & Ours and Elizabethtown underperformed 2005 releases including Collateral, SpongeBob SquarePants and Without A Paddle.

    Television license fees increased by 30 per cent to $220.4 million, including $55.6 million of DreamWorks related revenues which accounted for all of the increase. Worldwide theatrical revenues in 2006 increased by 50 per cent or $39.5 million to $118.9 million. DreamWorks titles She’s the Man, Munich and Match Point added $42.6 million in the quarter, partially offset by declines as Failure to Launch and Last Holiday, in theaters in the first quarter of 2006, underperformed 2005 titles including SpongeBob SquarePants, Lemony Snicket and Coach Carter.

    Ancillary revenues increased by 78 per cent to $63.8 million driven primarily by increased revenues related to the rental of studio space.

    Commenting on the result, Viacom executive chairman Sumner M. Redstone said, “The exceptional businesses and strong brands of Viacom are very well-positioned as we move into an increasingly multi-platform environment. Looking ahead, we believe we can create long-term value for our shareholders and outperform the industry as we deliver our content in more ways than ever before to even larger audiences.”

    Added Viacom president, CEO Tom Freston, “There’s great excitement and momentum at Viacom. First off, we completed our first quarter as a new, focused and more nimble company. We closed the acquisition of DreamWorks and sold the library, continued to make strong progress in the execution of our digital strategy and hit many all-time viewership highs at MTV Networks and Bet Networks. We did face some challenges in the overseas ad market, but we have already taken steps that we believe will put that business back on track to deliver on its growth potential.

    “Overall we’re pleased with the way our company performed, and are continually working to ensure that investors fully realize the success of our strong brands, film, cable and digital content and multiplatform opportunities. I’m very comfortable with our progress and our outlook, and am confident that we’ll meet our 2006 goals.”

  • Viacom completes sale of Paramount Pictures’ DreamWorks film library

    Viacom completes sale of Paramount Pictures’ DreamWorks film library

    MUMBAI: Viacom Inc. announced that it has completed the sale of Paramount Pictures’ DreamWorks film library to Soros Strategic Partners LP and Dune Entertainment II LLC, an affiliate of Dune Capital Management LP.

    The companies announced they had entered into an agreement for the transaction on 17 March.

    Viacom’s Paramount Pictures announced in February this year that, it closed on its acquisition of DreamWorks SKG for $1.6 billion in cash and assumption of debt. Under the agreement, Steven Spielberg and David Geffen of DreamWorks will remain in their respective roles as producer/director and chairman.

  • 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.

  • Nickelodeon ups Crosby to SVP strategy and business development

    Nickelodeon ups Crosby to SVP strategy and business development

    MUMBAI: Nickelodeon has named Dominique Crosby as Nickelodeon and MTVN Kids & Family Group senior vice president strategy and business development. The announcement was made by executive vice president strategy and business operations Sarah Kirshbaum Levy, to whom Crosby will continue to report.

    “With her gift for strategic thinking and process organisation, Dominique has been a major contributor to the growth of our business. She’s a talented executive whose proven leadership will insure greater coordinated strategic thinking across lines of business and that all of our strategy and business development activities get value added input and oversight,” said Kirshbaum Levy.

    In her new role Crosby will oversee all strategy and business development at Nickelodeon and MTVN Kids and Family Group and will be responsible for identifying, analysing and recommending new business opportunities, as well as providing long-term strategic analysis and vision for existing lines of business.

    Crosby joined Nickelodeon’s business development team in 2001 as director strategy and business development and was named vice president in 2002. She has spearheaded the strategy work for Spike TV’s repositioning, Nickelodeon’s long range plan and Nick’s digital television networks’ positioning and expansion. She was also a key player in vital projects including Nickelodeon’s acquisition of the online site Neopets and MTV Networks’ foray into Video-on-Demand.

    Prior to joining Viacom, Ms. Crosby was an Associate in J.P. Morgan’s Venture Capital and Private Equity group focusing on the telecommunications, technology and media industries, and also worked in the mergers and acquisitions and debt capital markets departments.

  • Viacom to sell Paramount Pictures’ DreamWorks film library for $900 million

    Viacom to sell Paramount Pictures’ DreamWorks film library for $900 million

    MUMBAI: Soros Strategic Partners LP and Dune Entertainment II LLC, an affiliate of Dune Capital Management LP, have signed a definitive agreement with Viacom Inc. to purchase the film library of Paramount Pictures’ DreamWorks LLC for $900 million.

    The library sale, subject to customary closing conditions, is expected to close in April. The transaction completes the second stage of the DreamWorks acquisition. After the conversion of certain commercial agreements from debt to advances, Viacom expects a net purchase price for DreamWorks of approximately $600 million.

    Under the terms of the library transaction Soros and Dune will acquire all 59 DreamWorks live action films released through 15 September 2005. Soros will enter into an exclusive five-year agreement with Paramount to distribute the library.

    Viacom will retain ownership of music publishing and certain other ancillary and derivative rights associated with the library including sequel and merchandising rights. In addition, Viacom will retain a minority interest in the entity holding the library assets.

    Viacom has retained certain rights to reacquire the library and Soros and Dune have the right to sell the library to Viacom, beginning at the end of the fifth year, at the then current fair market value. Additionally, the parties have certain rights to acquire the other’s interest in the library at fair market value at any time upon the triggering of certain events. In the event that Soros continues to own the library after the fifth year, the distribution agreement with Paramount will automatically renew.

    “After a thorough process that resulted in great interest for the DreamWorks film library, we’re pleased to have reached an agreement with Soros and Dune that has outstanding terms for all parties and is well within our expected sales price range. By significantly reducing our capital investment, this transaction materially increases our expected return on invested capital for the DreamWorks acquisition. Additionally, we retain all the strategic and operational benefits of the combination,” said Viacom executive vice president and chief financial officer Michael Dolan.

  • Viacom looking to co-produce films in India: Freston

    Viacom looking to co-produce films in India: Freston

    MUMBAI: The start of something new! That is what Viacom president and CEO Tom Freston is looking to achieve in India. The company is looking to co-produce films in India instead of merely exporting its films in to the country though its partner United International Pictures (UIP).

    Speaking this morning at the convention for the business of entertainment Frames Freston said, “It is no secret that Paramount has seen a struggle over the past few years. It is now going through a process of reinvention and while changes are not going to happen overnight we are excited about the future. We are expanding our global portfolio through acquisitions.Viacom was split into two entities last year. This has allowed us to be more focussed and not get distracted by areas like parks and distribution.”

    “The area of intellectual property is one that we are looking at. We want to co-produce films in India. We want our relationship to be a two way street. We strengthened our films business by acquiring Dreamworks. Steven Spielberg will make four to five films a year for us. Mission Impossible III will release in India in June.

    “Another area that we are looking at growing our business is in the home entertainment arena. Where there are many television sets there will also be a huge avenue for DVDs. We are also looking to take Indian and Asian culture to the US. We are doing this through a new New York based channel MTV Desi. This showcases Indian and Asian music and caters to the South Asian population in the US.”

    Freston pointed out that by operating MTV India, Viacom learnt a lot. “When we came in, we partnered with Star in the early 1990’s. Then we re-launched on our own and stumbled badly at first. The audience was simply not interested in Pearl Jam and Beastie Boys. We went back to the drawing board and came out with a channel that showcases Hindi pop. Our VJ’s speak in Hindi and English. This way we express local culture while at the same time exposing the audience to what is going on elsewhere.

    “This strategy was followed elsewhere. Hence, no MTV channel is like the other. In China, it reflects family values. In Indonesia, it is a call to religion. In Italy, it is stylish while in Brazil, it is sensuous. In India, it is colourful and street savvy. When I got a job in the early 1980’s as marketing director at MTV, I knew that it was the beginning of a trend of having a branded channel for specific audiences.”

    Not many readers may know that Freston came to India in the 1970’s and set up a clothes company. “It was a way for me to bring Indian culture to the world. India at the time was the one country outside the US that had a thriving local pop culture. The film stars were larger than life. Today, when I am in India I see my past and future.

    “India has had a huge influence on me personally and my perspective certainly changed those days. I hope that in five years time, Indians see Viacom as a good partner and a better friend. India has 700 million people below the age of 35. This is twice the population in America. This population is multi spiced and is used to accessing information from different platforms like the small screen – the mobile. It is the promised land for content creators and distributors.”