“We’ve Made a Lot of Progress at Viacom” – CEO Bob Bakish Touts Achievements at MoffettNathanson

by Stuart Winchester, Viacom

Growing viewership, building new management teams, finding efficiencies, delivering content on next-generation platforms. Viacom President and CEO Bob Bakish sat down with Michael B. Nathanson at last week’s MoffettNathanson Media & Communications Summit in New York City, where they discussed these and other ways that Viacom is strategically positioning itself to thrive in a rapidly evolving media landscape.

“I fundamentally believe we’ve made a lot of progress at Viacom in the last year or so,” Bakish said. “That starts with having a plan and laying it out for our teams, our employees, and quite frankly, the rest of the industry and the financial community. … For the last couple of quarters, we’ve seen consistent share growth, including in the last quarter. And in fact, we’re seeing improvement relative to last quarter and the current quarter we’re in. So that’s clear progress.”

Additional highlights from the conversation are below. Listen to the full exchange here.

Next-generation platforms and solutions are driving a huge potential growth market for Viacom

Viacom Digital Studios, announced late last year and launched in earnest at the recent Newfronts in New York, is just getting going, but has already stoked strong digital consumption, with video views up 110 percent year-over-year last month. This is just one part of a broad suite of digital initiatives – from vMVPD (virtual multichannel video programming distributor) distribution over Sling and DIRECTV NOW to deals with Telfonica (across Latin America), Telkomsel (Indonesia) and other mobile providers – that is positioning Viacom to evolve with its increasingly digital-first fanbase.

“So when we talk about next generation, we’re talking about vMVPDs. We’re talking about OTT (over the top). We’re talking about sort of AVOD (audio/visual on demand), in front of the wall, social, et cetera. And we have initiatives going in all of those spaces. And the reason we’re in all of those spaces is we believe that’s a very powerful complement to what we’re doing in the traditional space and is critical to driving growth.”

New management is driving ratings growth across the core television business

MTV is riding an unscripted boom to 10 straight months of ratings growth under network President Chris McCarthy, while ratings are up at BET behind a scripted programming push and at Comedy Central as Trevor Noah solidifies himself as a major voice in late-night.

“So, I feel good about our trajectory there, and in fact, again, when you met with advertisers and we did dinners with each of the agency holding companies over the last three weeks or so … what we typically heard … was, ‘wow, you guys made a lot of sort of promises and commitments when we saw you last year … And we were somewhat skeptical but it’s really incredible how far you’ve come and seeing these brands and we’re very excited about your upcoming slates,’ as are we, by the way,” Bakish said.

Paramount Pictures’ new management team is turning the studio around…

Under Chairman and CEO Jim Gianopulos, the iconic movie studio has installed a new management team and reoriented its slate so that half of its films are co-branded with Viacom’s media networks. With A Quiet Place – the first film produced, marketed and distributed under the new team – rolling out to more than $300 million in worldwide box office receipts (so far), on a $20 million budget, the studio has plenty of momentum moving into the summer.

“And if you look at Paramount, we have a plan that management is totally bought into that is about, that addresses some of our historical problems and our historical problems were a slate construction that didn’t make sense, was not balanced, didn’t leverage the assets Viacom had and then frankly poor execution,” said Bakish “… look at the branded films, the first one in this kind of era is going to be a BET film shot by Tyler Perry [starring Tiffany Haddish] … That’s a film that we made at a very attractive price point, and it’s going to benefit from the BET brand, and that’s why Tyler came and left a perfectly good existence at Discovery and Lionsgate to unify his content output with Viacom … So we are going to rapidly take share, it’s going to be profitable share and we’re going to combine that with our television business and that’s going to take us back very quickly to a very nice business.”

…while the Paramount TV production studio evolves into a premium content force

With 19 network projects in the pipeline and hits such as Netflix’s 13 Reasons Why and TNT’s The Alienist stamping the studio’s premium content credentials, Paramount Television is expected to deliver $400 million in fiscal 2018 revenue.

“When suddenly Viacom split with CBS, the TV production went with CBS and therefore we had a kind of naked film-only studio, which is not a good place for a studio to be because very lumpy,” Bakish said. “Television tends to kind of flatten out the volatility year-to-year, as well as, of course add value. … Paramount is rapidly being appreciated as a place that makes hits in television too.”

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Viacom Launches Digital Studios at First NewFront, Ramping Up Online & Mobile Content Pipeline

by Stuart Winchester, Viacom

Laugh with Majah Hype, wake up with Nikki Glaser, cook with Snooki, get animated with JoJo – and do it all on your phone.

Viacom Digital Studios (VDS) is here, poised to deliver hundreds of hours of premium digital content that will transport digital native stars from BET, Comedy Central, MTV and Nickelodeon to the social and mobile platforms where their fans live.

This was the headline of Viacom’s spectacular first NewFront event earlier this week at Manhattan’s Chelsea Piers, where the company marched confidently into the digital realm by detailing dozens of new short-form properties to feed its massive online social footprint of more than 850 million fans, elaborating on new content deals with Snap and Twitter, and announcing an expansion of its recently acquired VidCon conference to London this February.

“The launch of Viacom Digital Studios is an amazing opportunity to reimagine our iconic brands for a new generation of young, mobile-first audiences,” said VDS President Kelly Day. “We’re bringing the power and scale of Viacom’s global content engine and storytelling capabilities to entertain and engage our fans whenever and wherever they’re consuming content.”

VDS has been steadily ramping up since Day joined Viacom late last year, jolting year-over-year social video views and minutes viewed in the U.S. upward by 70 (to 4.3 billion) and 78 percent (to 4.7 billion), respectively.

The digital studio is a lynchpin of Viacom CEO Bob Bakish’s revitalization plan, as the company moves deliberately to expand its core television business onto next-generation platforms.

“… if you can think about all the time spent on mobile and all those devices out there, I think you quickly realize what a powerful growth engine that will be for our business,” Bakish told a crowd of investors at the Morgan Stanley Technology, Media & Telecom Conference in March.

While Viacom’s digital content will run across YouTube, Facebook, Instagram, and other channels, the company’s NewFront highlighted new global original content deals with Snap Inc. and Twitter.

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