Nathan Pearson interned in MTV’s Integrated Marketing department during the fall semester of 2015. He is now a coordinator for MTV Integrated Marketing, and a full-time Viacom employee.
Viacom content rolls from screens across more than 180 countries and in dozens of languages, reaching more than 4 billion subscribers. Every single piece of this content is the result of dozens or hundreds or thousands of workers who do everything from directing to producing to lighting to catering to set design – and most of them do not work directly for Viacom; they work for independent companies, vendors that Viacom contracts to execute the particulars of production or logistics or supply delivery.
This enormous footprint presents Viacom with an equally enormous opportunity: to proactively seek out diverse suppliers, echoing the company’s varied programming and strong internal culture of diversity and inclusion.
Under the company’s new supplier diversity initiative, led by Viacom’s sourcing team and its Office of Global Inclusion, the company is doing exactly that, actively forming new partnerships that are broadening opportunities for minority-owned shops while bolstering Viacom’s own business by offering a wider array of creative perspectives.
“When you look at the amount of spend we generate both through media networks and Paramount, it’s an incredible opportunity to diversify our partnership base,” said Viacom Executive Vice President and Global Head of Inclusion Strategies Marva Smalls.
Identifying diverse partners
The first step to diversification was to simply catalogue Viacom’s current vendor pool, a massive undertaking. Aside from changing internal procedures to document whether incoming vendors are diverse, Viacom joined several minority-focused councils that work with certified (meaning the businesses are at least 51 percent minority-owned) suppliers: the women’s business council WBENC, the LGBT business advocates NGLCC, minority supplier group NMSDC, and representatives of people with disabilities and disabled veterans Disability:IN (formerly USBLN). So far, approximately 1,100 of Viacom’s vendors have either self-classified themselves as diverse or fit into the rubric to be certified by one of these organizations.
The reach of these certifying councils is substantial. The National LGBT Chamber of Commerce (NGLCC), for example, which claims to represent the interests of more than 1 million LGBT U.S. business owners, which it can connect with Viacom via networking events and access to its deep database.
Viacom’s goal is to form long-term, immersive partnerships with each organization, underscoring for their members the company’s sustained commitment to diversity. Building such a network also creates an echo affect, a sort of street cred where partner companies validate Viacom’s commitment not just to diversity, but to supporting the small businesses that most of these operations are.
“If you have that local production company that says, ‘I’m in business with Viacom, and as a result, that allows me to hire more people for my community and where I’m located,’ ultimately, the community will see that,” said Smalls. “We need to be viewed as a company that’s not just taking up space in the community, but actually taking the time to identify small businesses.”
Viacom is also coordinating with its peers to identify minority-owned businesses. Last year, Viacom co-hosted a networking event with Disney, Time Warner, CBS, NBCU and others, during which minority-owned vendors could meet representatives of many large companies at once.
Sometimes a nudge is all you need
One initial contract with a major corporation can be the catalyst for tremendous growth. “The whole purpose behind vendor diversity is to help put a seat at the table for the new, innovative company who deserves a fair shot,” said Jonathan Lovitz a senior vice president and former director for NGLCC New York (and also a former Logo personality) . “Our partners at all of our organizations that advocate for diverse-owned companies can each point to the day everything changed for a small business because they earned a chance to be seen by an inclusive industry leader like Viacom.”
Take, for example, Jax Media, a New York City-based, minority-owned production shop. The company parlayed a single off-the-air Comedy Central presentation a decade ago into production of multiple series for the network, including hit series Broad City. The company also produces TV Land’s Younger and has collaborated with MTV and Paramount Network.
“We make sure there is an eye toward creating a diverse culture and environment,” said Megan Ring, senior vice president and head of production for Comedy Central and senior vice president of scripted production for Paramount Network and TV Land. “Jax Media’s owner, Tony Hernandez, was just a producer in New York with some great ideas and a different way of thinking. We struck up a relationship and we were willing to take some chances to learn from him, and he was at the same time able to take advantage of access points to Viacom.”
Howard is a Campaign Activation & Branded Content Coordinator at WHOSAY, Viacom’s recently-acquired talent & influencer marketing company. Prior to obtaining this role, he was a Coordinator in Viacom’s Distribution & Business Development team and has also interned in MTV Integrated Marketing (Velocity) for two semesters: fall of 2015 and spring of 2016.
Campus to Career: Hey Howard! Can you tell us a bit about your background and how you landed here at Viacom?
Howard Tseng: I attended CUNY Baruch and studied advertising and marketing. While I had several internships throughout school in the music industry, I wanted to get a better understanding of the media and entertainment business as a whole. Viacom felt like the perfect company for me, since many of our brands involve both music and television. I was super excited to get my first internship at Viacom, and realized it was a great fit for me early on.
Viacom is a great place to explore your interests across the entertainment landscape. Do you have any advice for interns who are less sure exactly what they want out of their internships or careers?
Ask questions! Asking thoughtful questions about what your department does and the impact it has on Viacom’s overall strategic goals works two-fold: it gives you deeper knowledge of your own department, and helps you understand more about what other teams do within the company. Networking and informational meetings with other employees never hurts, too.
Viacom brands totalled 90 North America PromaxBDA Promotion, Marketing and Design Awards at a gala in New York on June 14.
Nickelodeon (21 awards), Comedy Central (27), the Paramount Network (7), Paramount Channel (6), BET (2), MTV (4), Viacom Velocity (6), Viacom Catalyst (1), Viacom18 (10) and VIMN (5) were widely represented across the Gold, Silver and Bronze awards in various categories for domestic and international productions.
Additionally, PromaxBDA honored Debra Lee, BET’s long-time former CEO, with its Lifetime Achievement Award for “her decades of achievement in our entertainment and media industry.”
Congratulations to Lee and to all of Viacom’s PromaxBDA winners and shortlist honorees. Take a look at the full list of winners for each division below:
Pinky Malinky is an upbeat teenager who has a lot in common with his peers: he posts rabidly on social media, he hangs out nonstop with his two best pals, and he constantly must navigate the social pressures of school and life. But there’s one very important thing that will make Pinky unique among Nickelodeon characters (besides the fact that he’s a talking hotdog): when his show debuts later this year, fans will find him exclusively on Netflix.
But Pinky won’t likely be alone for long – across Viacom’s ecosystem, brands are digging into their vaults to identify intellectual property that could be an ideal fit for a digital or linear programmer outside of Viacom. MTV, under the banner of MTV Studios, is for the first time cracking open its rich, 35-year archive to offer its iconic, youth-centric content – Real World, Daria, Aeon Flux, the Emmy Award-winning Made, just to start – in new or reimagined form on non-Viacom platforms. In addition to strategically tapping the 200 titles in its massive library, MTV Studios will churn out new ones, including, to start, The Valley (working title), about a group of friends growing up in the U.S.-Mexico border town of Nogales, and MTV’s Straight Up Ghosted, in which victims of this mobile-age abandonment will confront their disappearing former intimates.
Similar efforts will follow at other Viacom networks.
This studio model – under which Viacom will license and produce new episodes of fully owned content for third parties – will present an enormous growth opportunity, as the company’s brands increasingly feed the insatiable global demand for premium content.
Viacom is uniquely positioned to do this. The company’s voluminous original content libraries house an enormous number of beloved properties that speak deeply to their fans. Its archives stretch back decades – and, in the case of Paramount Pictures, more than a century. Its properties resonate deeply with high-value audiences: kids (Nickelodeon), African-Americans (BET), youth (MTV), the LGBTQ community (Logo), and more. Viacom’s global footprint means that those audiences stretch across cultures and borders. As the first port-of-call for creatives pitching shows tailor-made for these audiences, Viacom’s brands are keenly aware of what is in the market. Its production expertise is second to none.
And even as these sorts of deals multiply, Viacom will retain all consumer products rights for all properties, fueling the company’s increasingly robust consumer products operation.
The possibilities for third-party licensing and production are practically limitless. Pinky Malinky – which will feature Nick branding at the show open and embodies Nickelodeon’s patented spirit of fun and surprising stories and characters – is just the first of up to a dozen properties that the brand is positioning for reboots or co-productions this year alone.
“Proliferating distribution platforms create incremental demand for VIAB’s [Viacom’s] content because high-quality branded content is one of the most valuable forms of differentiation for competing distribution platforms,” Needham declared in a bullish March analysis of the company’s stock. “VIAB’s film and television libraries represent differentiated, globally scalable, long-lived content.”
Take, for example, Jack Ryan, the Tom Clancy action hero who fought his way through five Paramount Pictures films, starting with 1990’s The Hunt for Red October. The quintuplet of movies grossed hundreds of millions of dollars and still carries strong brand recognition and a built-in fanbase. But while there is no obvious basecamp for Ryan within Viacom’s current brand archipelago, his bulletproof vest is a perfect fit for Amazon Video, which will debut the 10-part Jack Ryan series in August.
This branching out into third-party content production has been subtly underway for some time, both in the United States and abroad. Paramount Television, the production arm of Paramount Pictures that is producing Jack Ryan, has quietly built a $400 million-per-year business from scratch by producing premium content like Netflix’s 13 Reasons Why and USA Network’s Shooter.
In May, Viacom International Studios (VIS) united the extensive production capabilities of wholly Viacom-owned Argentinian broadcaster Telefe and majority-owned Brazilian comedy brand Porta dos Fundos with Viacom’s Miami-based production operations, creating a multi-lingual machine that will develop, produce and distribute original content around the world. A matrix of SVOD, pay TV and free-to-air distribution deals will place VIS-produced long-form series (Borges on Netflix in Latin America), cinematic adaptations (Telefe’s Animal on Fox Networks’ platforms in Latin America), telenovelas (Vikki RPM on Caracol Televisión in Colombia), and co-productions (Club 57 on Rainbow Group in Italy and Nickelodeon elsewhere) in diverse markets and maximize the potential of formerly regional or local properties.
These licensing deals will therefore sprinkle tastes of Nickelodeon and MTV and Telefe and other Viacom properties throughout the global content ecosystem, while segmenting the full brand experience for consumers who subscribe to a Viacom linear or digital distributor. Even so, this nascent third-party production is already acting as a powerful growth driver as Viacom diversifies outside of its core television business under President and CEO Bob Bakish.
“Building on the success of Paramount Television and Telefe’s quickly growing production business, we’re going to much more aggressively tap into the huge demand for content and unlock more of our IP and production and creative capabilities to drive incremental revenues from third-party platforms,” Bakish said on Viacom’s second-quarter 2018 earnings call in April. “This isn’t just an idea. … there is a lot of interest from SVOD partners in licensing library properties from MTV and Nickelodeon IP for brand-new interpretations. At the same time, we’re also developing new IP for the sector and have already closed deals for brand-new original Nick IP and animation with third parties and we see more in the pipeline.”
Across 10 Viacom-owned networks, 3.371 million viewers (a 21 percent increase over 2017), watched as Millie Bobby Brown pushed back at bullies and Haddish spoofed the year’s top films and TV shows. Viewers in key demographics drove the ratings increase, with the 18-34 group surging from a 1.85 rating last year to 2.24 this year – a 21 percent jump – and those 18-49 pushing from a 1.63 to 2.04 share, an increase of 25 percent. Looking solely at MTV and VH1, the numbers grew even more explosively, with a 30 percent jump among viewers 18-34 and a 35 percent rise in the 18-49 demo.
The buzz carried over to social, where the MTV Movie & TV Awards beat the World Cup for most social show on television (per Nielsen), nearly doubling last year’s total and setting show records with more than 83 million streams (and counting). #MTVAwards trended No. 1 in the U.S. and globally over the course of the two-hour telecast.
In order to maximize the show’s potential audience, MTV made a few calculated decisions when choosing its airdate. First, they moved the awards from their traditional Sunday broadcast to Monday, when MTV and VH1 tend to draw strong viewership.
Second, MTV pushed the show down the calendar from May to June, slotting it in the midst of the June pre-nomination Emmy-voting window. This strategic positioning may have encouraged star turnout – Chadwick Boseman, Michael B. Jordan, Chris Pratt, as well as cast members of Riverdale, Keeping Up with the Kardashians and Stranger Things all accepted their Golden Popcorn buckets onstage at Santa Monica’s Barker Hangar. This star power, in turn, could have drawn fans.
“The date change was a draw for networks and streaming platforms, and talent looking for opportunities to get their content out there during this key window,” MTV, VH1 and Logo General Manager Amy Doyle told Indiewire’s Michael Schneider before the awards aired. “And you’ll see that in full effect when watching the show.”
But the crisply edited, entertaining show drew a lot of attention on its own merits.
“After sitting through countless bloated awards shows indulging themselves for three or four hours at a time, the 2018 MTV Movie & TV Awards were a genuine relief — and in a delightful twist, even genuinely heartwarming,” wrote Variety’s Caroline Framke. “Airing Monday night after taping Saturday, the edited ceremony ran just two hours long but managed to squeeze in 15 awards, two musical performances, and several pre-taped sketches featuring host Tiffany Haddish. … By the night’s end, it was hard to understand why other awards show don’t follow suit more often.”
“… it was the best version of this show I’ve ever watched,” added Entertainment Weekly’s Darren Franich.
Viacom took five categories (and earned one special recognition), at the 45th Daytime Creative Arts Emmy Awards, with Nickelodeon, Logo TV and MTV snagging statuettes for dazzling short-form digital content, feature-length films and children’s television.
Under the Nickelodeon umbrella, perennial fan-favorite SpongeBob SquarePants was recognized for its superb animated storytelling with two awards and a special recognition for its creator, Stephen Hillenburg, for his impactful work in the animation and broadcast world. Nick Jr. was awarded for Girls In Charge, an inspirational PSA aimed at preschool girls. The spot features fierce girl power courtesy of Nick Jr. girl characters, like Dora from Dora the Explorer and Nella from Nella the Princess Knight.
MTV and Logo TV both earned accolades for distinguished digital storytelling. Logo TV’s harrowing documentary on renowned makeup artist and LGBT figure Kevyn Aucoin (Kevyn Aucoin: Beauty & The Beast In Me) topped the Outstanding Special Class Special category. MTV won for its work creating a PSA, Undocumented and Afraid, for Logo TV’s film Forbidden, a motivational and informing film centered on LGBT-immigrant issues.
Take a look at Viacom’s winning content:
SpongeBob SquarePants – Outstanding Children’s Animated Series
SpongeBob SquarePants – Outstanding Performer in an Animated Program (Tom Kenny, as SpongeBob SquarePants)
Daytime Emmy Awards Special Recognition
Stephen Hillenburg, creator of SpongeBob SquarePants, earned a special recognition for his contributions to animation.
Viacom posted strong second quarter 2018 earnings this morning, outperforming projections with significant gains in both adjusted operating income and adjusted earnings per share as the company accelerates its pivot from stabilization and revitalization to growth.
Double-digit gains across all international Media Networks revenue streams, Paramount Pictures’ return to profitability, ratings increases at key flagship networks, significant benefits from cost savings, further diversification into live events and other adjacent businesses, and an increased focus on next-generation platforms and solutions all set Viacom on a trajectory toward a full fiscal year of growth.
“Viacom continued to accelerate progress against its strategic priorities, delivering improvements across key metrics in the quarter,” said Viacom President and CEO Bob Bakish. “Our flagship brands increased audience share among important demos for the fourth consecutive quarter, and we saw sequential improvements in domestic advertising and affiliate revenue performance. Internationally, Viacom continued its winning streak, achieving double-digit revenue and profit gains in the quarter while expanding its global footprint through new channel launches and innovative mobile distribution deals across Europe and Asia. Our cost transformation initiatives are well under way; we anticipate more than $100 million in cost savings in fiscal 2018, and now expect over $300 million in run-rate savings in fiscal 2019 and beyond.
“At Paramount Pictures, turnaround efforts have firmly taken hold as the studio improved margins and returned to profitability. This month’s outstanding box-office performance of A Quiet Place, the first film produced and released under the new team at Paramount, is a clear sign of our progress.
“Viacom also took strides to advance its participation into next generation platforms and solutions. We continued to benefit from growth in the vMVPD space, delivered revenue gains in Advanced Marketing Solutions, and significantly increased original content production through Viacom Digital Studios to drive off-linear consumption. Additionally, we continue to diversify into adjacent businesses by building on our live events strategy with upcoming tentpoles including Comedy Central’s Clusterfest, the BET Experience, Nickelodeon’s U.S. debut of SlimeFest and our first-ever VidCon.”
Viacom’s core business continues to strengthen
Improved performance throughout Viacom’s core business – domestic and international Media Networks and Paramount Pictures – allowed the company to meet or beat guidance on key metrics year-over-year for the quarter, producing five percent adjusted operating income growth and a 16 percent jump in adjusted earnings per share.
Domestically, both advertising and affiliate revenues increased. Viacom’s flagship brands (Nickelodeon, Nick Jr., MTV, BET, Comedy Central, Paramount Network), grew audience share year-over-year for the fourth consecutive quarter, while the company continued to hold the top share of basic cable viewing in key demos, including adults 18-34, African-Americans, and kids 2-11. BET grew year-over-year ratings and share by double digits for the third consecutive quarter, while VH1, CMT and TV Land notched year-over-year growth in audience share and ratings. MTV’s programming resurgence continued, with a third straight quarter of year-over-year primetime ratings growth led by Jersey Shore: Family Vacation, which, with 10 million viewers on its opening weekend, was the biggest unscripted cable premiere since 2012.
Viacom International Media Networks is on pace for another record year after posting double-digit increases in profitability, as well as across all revenue streams.
Paramount Pictures returns to profitability
After notching a $75 million year-over-year improvement in adjusted operating income under its new management team, Paramount Pictures raised the curtain on the third quarter with the release of smash hit A Quiet Place. The film rode overwhelmingly positive critical response and deft marketing to the studio’s best opening since 2016 and the second biggest domestic opening so far this year, earning more than $200 million in its first three weeks alone on just a $20 million production budget. Additionally, the studio’s Paramount Television production business anticipates $400 million in revenues this year. Behind these and other catalysts, Paramount expects meaningful improvement to its full-year adjusted operating income for the full fiscal 2018.
Viacom is aggressively increasing its digital output on next-generation platforms
Anchored by 850 million social media followers, the newly formed Viacom Digital Studios is poised to create more than 600 hours of short-form original content this year. This quarter alone, social video views shot up 70 percent (to 4.3 billion), and domestic minutes viewed increased by 78 percent (to 4.7 billion minutes) year-over-year.
The addition of Nickelodeon’s Noggin app to Amazon and a renewed agreement that adds more Viacom content to Snap’s programming slate, in addition to recent and forthcoming mobile deals, will continue to expand the reach of Viacom’s increasing volume of on-the-go-content.
Growing ad revenue through Advanced Marketing Solutions
Viacom today detailed how its Advanced Marketing Solutions (AMS) portfolio would provide even greater opportunity to take advantage of new advertising platforms. The company also broke AMS – which increased its revenue 29 percent in the quarter – into two basic categories:
- Advanced addressable video inventory contains advertising units that Viacom can target to consumers, either through its brands’ apps, or by using set-top-box data from its advanced advertising partners, including Comcast, Charter and Altice USA.
- Brand solutions is a bundle of consulting, creative services and associated activations that includes social campaigns led by influence marketers WHOSAY, creative integrations with in-house integrated marketing and creative solutions team Viacom Velocity, and experiences at retail stores or Viacom’s growing portfolio of live events.
Viacom live events and consumer products lines continue to grow
Viacom continues to reinforce its brands and drive revenue through live events, recreation, consumer products and other business lines. This quarter marked a nearly 100 percent increase in live-event attendance over 2017, and there are plenty more events in the pipeline, including Comedy Central’s Clusterfest, the BET Experience, Nickelodeon SlimeFest, and the first VidCon since the online video conference joined Viacom – all of which should serve to double live-event and recreation revenue this year.
Viacom’s future looks strong
“Looking forward, we see continued momentum as we pivot from stabilization and revitalization of our business to a new phase of growth,” Bakish said.
To see what Viacom will debut in the months ahead, scroll through the timeline below, or click here to view the full-screen version.
It’s official: The Moon Person has landed on East Coast soil. On April 17, New York City officials and MTV celebrated the return of the MTV VMAs to New York’s Radio City Music Hall—home of the inaugural VMA ceremony in 1984.
A symbolic “moon landing” was held on Manhattan’s Avenue of the America’s under the venue’s marquee to commemorate the reunion of MTV and NYC.
“New York City’s creative energy has always fueled those who live and work here. This is where music, film, and art collide and where the Video Music Awards were born,” said New York City Mayor Bill de Blasio. “There is no better place to host the MTV VMAs than in New York City at one of the most iconic venues in the world.”
In the last week, Paramount Pictures’ A Quiet Place won the domestic box office and MTV’s Jersey Shore Family Vacation rolled to the strongest unscripted cable debut in six years. The efforts provide commercial evidence of Viacom’s ongoing transformation – fueled by wide-ranging creative investments in talent, programming, and marketing.
The chart-topping numbers are especially encouraging in a media environment of ever-more-elusive audiences. The divergent paths to success of these two properties – A Quiet Place delivering something novel by elevating a horror story to a genre-busting blockbuster that appeals to all audiences, Jersey Shore Family Vacation building on MTV’s deep well of intellectual property to connect with its core demographic – underscore the way in which a creative renaissance is driving Viacom’s growth.
Marketing a near-silent film in an era of loud
Making a bet on the film’s potential playability, Paramount unveiled A Quiet Place at SXSW to great response. The highly original film immediately started compiling incredibly strong reviews. A clever marketing campaign then helped launch A Quiet Place to a $50.3 million opening weekend, good for the second-best domestic opening of 2018 (behind Black Panther). With a $17 million budget, the Platinum Dunes-produced and John Krasinski-directed film is a validation of Paramount’s reoriented slate and refreshed marketing approach under CEO Jim Gianopulos, who joined the studio last year.
“An innovative concept, with great talent both behind the camera and in front, and a savvy distribution and marketing plan led to Paramount’s biggest opening since 2016,” wrote Viacom CEO Bob Bakish in a staff memo about the film’s success.
Building strong relationships with talent has become a particular focus for Viacom under Bakish, and Krasinski, who will produce and star in the Paramount Television-produced Jack Ryan for Amazon and co-created Paramount Network’s hit show Lip Sync Battle, demonstrates the enormous cross-brand potential that forming such deep relationships can yield.
A Quiet Place’s unique storyline – featuring a family tiptoeing through a post-apocalyptic world infested with insectoid monsters that will devour anyone who makes a sound – created an opportunity for Paramount to execute an equally original pre-release marketing plan. They delivered: moviegoers in nearly 100 theater chains caught the sonically attuned monsters devouring noisy spectators in pre-show spots, with the stern warning that “the movie theater should be A Quiet Place.” A pre-Super Bowl ad, a launch of the second trailer on Ellen, and a kick-off spot and accompanying stunts at the SXSW Film Festival primed diverse audiences for the film’s release.
“Paramount’s reconstituted management team is focused on allowing great filmmakers to make great movies, and then doing everything we can to support those movies,” said Paramount Pictures Chairman and CEO Jim Gianopulos. “In A Quiet Place, we did exactly that: We gave a talented young director license to put together something unlike anything else out there, and then threw our marketing and distribution expertise behind the project.”
Tapping an iconic property to connect with a core audience
Jersey Shore Family Vacation had less work to do in the name-recognition department, as its iconic predecessor, Jersey Shore, had long ago etched its cast into the cultural conversation. The unknown was whether this fist-pumping bunch, six years older and reunited in the beaches and bars of Miami, would still connect with audiences.
It did. The show’s nearly 10 million total viewers and 4.2 average rating in the core 18-34 demo on live-plus-three-days metrics made Jersey Shore Family Vacation the most-watched unscripted debut on U.S. cable since 2012. The original Jersey Shore had ignited a global franchise – with spin-offs in the UK, Spain, Poland and Mexico, plus the recently launched hit Floribama Shore in the U.S – and the cast’s return resonated globally, with the premiere airing in nearly 180 countries and territories.
The strong ratings complemented a seven-hour trending run on Twitter and acted as an emphatic endorsement of MTV’s revamped creative direction under President Chris McCarthy. Under his leadership, the network has grown ratings for three consecutive quarters for the first time in seven years behind a blend of revitalized franchises, returning classics and original programs.
“MTV is about celebrating youth culture and music where talent and creativity unite to produce content that resonates across generations,” said McCarthy, who also oversees VH1 and Logo. “Jersey Shore Family Vacation and the new Floribama Shore demonstrate how MTV can harness our heritage to create programming that appeals to a mass audience while serving as a great launching pad for our new series.”