“We Feel Great About Where Viacom Is Today,” CFO Wade Davis Tells Gabelli Conference

by Stuart Winchester, Viacom

NEW YORK, NY – APRIL 08: Viacom CFO Wade Davis attends the 2014 UJA-Federation of New York’s Leadership Awards Dinner at Pier Sixty at Chelsea Piers on April 8, 2014 in New York City. (Photo by Taylor Hill/FilmMagic)

“We feel great about where Viacom is today,” Viacom Executive Vice President and Chief Financial Officer Wade Davis told an audience of investors at the recent Gabelli Movie & Entertainment Conference. “From a fundamental standpoint, we think a lot of the strategies that we’ve been focused on and putting in place are paying off. … the first half of 2018, our fiscal 2018 is really a transition into delivering growth in the second half of 2018 and beyond, and we feel really good about that, focus 100 percent on delivering that.”

Here are a few more highlights from Davis’ remarks at the event. You can listen to the full event here.

Advanced Marketing Solutions and strong linear pricing are driving ad sales growth

“Pricing is incredibly strong right now in the linear market … So the growth is coming from what we call our Advanced Marketing Solutions portfolio or AMS [advanced addressable inventory and brand solutions]. So between those two areas – advanced addressable inventory where we’re activating new pools generally of non-linear inventory that are addressable in nature, and brand solutions – we have a portfolio business that as we’ve said publicly is going to approach $300 million this year. It’s really — it’s growing 40-plus-or-minus percent quarter-over-quarter, and we think that rate of growth will carry into 2019, and actually in the first part of 2019 accelerate.”

Growth comes over the top  

“So when you think about where Viacom is, we’re extremely well represented in the traditional distributor-led virtual MVPDs [multichannel video programming distributor]. That’s Sling, that’s DIRECTV NOW, and those are really the virtual MVPDs that matter. … We’d love to be on [Hulu and YouTube], we’re in discussions with those guys all the time. … And as we’ve gone through and stabilized our relationships with the traditional distributors, we’ve had a lot of success in getting ourselves very well positioned with respect to any virtual or OTT product that any of those traditional distributors will launch.”

Mobile is a global growth engine

“Mobile is a place where we’re significantly benefited by our global business. We made a lot of investments in bringing mobile bundles to market internationally. I guess we’ve announced at the moment five different partnerships that we have with mobile distributors around the world in which we’re licensing some form of bundle of our content into the mobile distributors. … And we’re in very advanced discussions with the three biggest operators in the United States, feel very good about where we’re positioned with them.”

Cornerstone networks in major international markets and mobile are driving growth outside the U.S.

“The [international] business is growing double digits, both top line and bottom line. … We operate in 180 countries. We have cornerstones in the biggest, most important markets, India and Asia, UK, which is the most attractive largest media market outside of the United States, and we’re the number one broadcaster in Argentina … And then there are some underlying trends that we think are different than the domestic market. … You do have a much more progressive mobile infrastructure [internationally]. As we said, a lot of these international markets, their principal Internet access is mobile and consequently their mobile offerings are a lot more mature. … And there’s also some of the same trends and tailwinds that we’re seeing in the SVOD [subscription video on demand] marketplace, domestically are starting to play themselves out globally.”

A “world-class team of operators” is transforming Paramount Pictures

“Every member of [Paramount Pictures’] senior management team except for the CFO is new. … We’ve completely overhauled all of the processes, the green light process, development process, global marketing, et cetera. So the business is running much more efficiently. We have a world class team of operators who bring new energy to the studio. … [and Paramount Television] should do about $400 million of revenue this year, and should, for the first time, be a contributor to operating income. It’s important to keep in mind that this is really still a startup. … it’s still in a growth phase, and we expect very, very strong double-digit growth on the revenue base above and beyond the $400 million that we expect this year.”

A “forever effort” transformation will save Viacom hundreds of millions of dollars

“…  when you think about our focus on margin enhancement, it really relates to efficiencies outside of content investment. So we’ve announced that we’ve undertaken a cost transformation effort. And for us, that’s not just a onetime restructuring. I think a lot of media companies and even Viacom historically would, from time to time, announce a restructuring in which they would write off some content, let some people go. But this is an effort that we view as a forever effort and something that’s part of the new culture that we’re trying to build. We have a team that’s a full-time team staffed focused on this. We’ve been very public about the amount of savings that we’re going to be able to deliver out of the current efforts being more than $100 million in the current year and in excess of $300 million in 2019 and beyond.”

A comprehensive reimagining of the content pipeline is connecting Viacom networks with their natural audiences

“The big issue for us and the big opportunity for us is bringing the focus that we’ve cited around our flagship six networks, being able to concentrate the spend where it matters most and being very precise about what the programming strategy and the brand promises for each of those brands. … So a good example of that is MTV which had historically been dabbling in very expensive scripted programming. That scripted programming is not programming that worked particularly well on MTV for MTV’s audience, and it consumed a ton of dollars for a very small amount of hours. Not enough hours to actually have MTV be a destination for high-end scripted dramas. So what we’ve done is we’ve concentrated our efforts around high-end scripted on the Paramount Network. As it relates to MTV it’s allowed us for really in some cases less money dramatically increased the amount of original programming that we have on the network, but most importantly, it’s programming that’s aligned with a vision that’s important to MTV’s audience.”

Bumblebee Transforms Hailee Steinfeld’s Life in First Trailer

by Stuart Winchester, Viacom

Before The Last Knight or the Age of Extinction, before Decepticons started leveling American cities and destroying military bases, a yellow Volkswagen Beetle sits forgotten in a California junkyard. It’s been neglected long enough that a honeycomb of bees buzzes beneath its wheel well. Seventeen-year-old Charlie (Hailee Steinfeld), takes it home.

She gets more than a car. As Charlie slides beneath her new ride to inspect it, the bug erupts in an intricate flipping puzzle of zinging metal parts, rearranging itself into beloved Autobot Bumblebee.

“Let me tell you something, the driver don’t pick the car, the car pick the driver,” a hauntingly familiar voice-over – it’s the late Bernie Mac, warning Sam Wtiwicky (Shia LaBeouf) in 2007’s Transformers – announces at the trailer’s opening moments. “It’s a mystical bond between man and machine.”

In this case, it’s woman and machine (and a woman, Christina Hodson, wrote the script), but the bond between Charlie and Bumblebee looks as strong as any.

Hailee Steinfeld in BUMBLEBEE, from Paramount Pictures.

The two become great pals. They go to the beach. They go swimming. Charlie goes no-hands through the sunroof down the Pacific Coast Highway, perhaps pioneering the self-driving car in the film’s 1987 setting.

But things get hectic. The military lurks. So does dreaded Decepticon Starscream. Charlie gets banged up. Helicopters fall from the sky.

The film, helmed by Oscar-nominated Kubo and the Two Strings director Travis Knight, promises to wrap this action in a powerful story informed by the Transformers’ heritage. “I wanted to return to the essences of what made the Transformers franchise so impactful right from the beginning: character, emotion, spectacle,” Knight told attendees at April’s CinemaCon.

Which is not to say that echoes of Paramount Pictures’ five previous Transformers films won’t ricochet off the screen. “… and explosions,” Knight continued, “lots and lots of explosions.”

Bumblebee will debut in theaters Dec. 21, 2018. John Cena, Jorge Lendeborg Jr., John Ortiz, Jason Drucker, Pamela Adlon and Stephen Schneider will star alongside Steinfeld.

Paramount Pictures, Paramount TV Honored for Sustainable Productions

Paramount Television-produced Shooter and Paramount Players’ Eli earned Green Seal and Gold Seal honors, respectively, at the 2018 Environmental Media Awards in recognition of their progress in sustainable production.

Paramount Pictures’ Downsizing, set on a hypothetical future Earth where people shrink themselves to decrease resource consumption, was nominated in the Feature Film category at the ceremony, which recognize media trailblazers who place equal value on creating entertainment and protecting the environment.

The Environmental Media Agency awarded Paramount Television-produced Shooter (USA Networks) at the 2018 Environmental Media Awards for its sustainable production. Photo courtesy of Paramount Television.

Green Seal for Sustainable Production – Paramount Players, Eli

Eli is the first feature film on deck for Paramount Players, Viacom’s newly minted film studio division, which integrates Paramount Pictures and Viacom brands. Eli, slated to premiere in January 2019, is being produced in association with MTV. The film centers around a boy who is hospitalized in a remote clinic while suffering from a rare disease. The child’s treatment takes a nightmarish turn when his sanatorium becomes a prison, possessed by evil spirits intent on keeping him there forever.

Gold Seal for Sustainable Production – USA, Shooter (produced by Paramount Television)

Shooter (a drama series based on Stephen Hunter’s best-selling novels and Paramount Pictures’ 2007 film starring Mark Wahlberg) follows the journey of Bob Lee Swagger (Ryan Phillippe), a former Marine sniper who is perpetually entangled with bad characters. The show’s highly anticipated third season premieres Thursday, June 21.

The Environmental Media Agency awarded Paramount Television-produced Shooter (USA Networks) at the 2018 Environmental Media Awards for its sustainable production. Photo courtesy of Paramount Television.

“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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Paramount’s Gianopulos Moves Studio Forward Behind Movies, TV, and 106-Year-Old Library

by Stuart Winchester, Viacom

As a movie studio with a diversified upcoming slate and powerful television production arm, reinforced with an iconic century-old library, Paramount Pictures is well positioned to thrive far into the future, according to President and CEO Jim Gianopulos.

The studio head, who has built a new management team since taking the helm at Paramount last year, sat down with CNN Money’s Dylan Byers at the Milken Institute Global Conference earlier this month to discuss the resurgent business.

“We’re content creators,” Gianopulos said. “We’re storytellers. For us, our primary focus is theatrical distribution as a studio, and, in television, the creation of television programming.”

LAS VEGAS, NV – APRIL 25: Jim Gianopulos speaks onstage during the 2018 CinemaCon – Paramount Pictures special summer presentation held at The Colosseum at Caesars Palace on April 25, 2018 in Las Vegas, Nevada. (Photo by Michael Tran/FilmMagic)

Television Production Ramps Up As Diverse Theatrical Slate Debuts

Both sides of the business – television and theatrical – have powerful catalysts driving them. The Paramount Television production studio, which has grown rapidly behind a string of premium-content hits such as Netflix’s 13 Reasons Why, TNT’s The Alienist, and USA Network’s Shooter, is on track to reach $400 million in revenues this year.

The forthcoming theatrical slate, which has been rejiggered under the current management team, will include sequels, reboots, animated films, and tie-ins to other Viacom brands through its Paramount Players division. At last month’s CinemaCon, Gianopulos detailed this lineup, which stands out for its diverse offerings that will appeal to both mass and niche audiences.

“We have an old saying that’s always worked for us – make it for someone, or make it for everyone,” he said, citing the forthcoming Mission: Impossible – Fallout and recent smash hit A Quiet Place as projects with mass appeal.

Meanwhile, Book Club – set to drop in theaters this Friday with a headlining cast of Diane Keaton, Jane Fonda, Candice Bergen and Mary Steenburgen – has been tailor-made to appeal to an adult female demographic.

“For them, that is Star Wars,” he said. “That’s their movie. Something that people feel an identity to. They made this for me. This is something relevant and relatable to me. You can continue to make a broad variety of films, and in the process, be very successful.”

A Rich History That Continues to Build the Present

For all the buzz around the studio’s yet-to-be-released films, one of Paramount’s under-appreciated strengths is its deep content warehouse that stretches back to the dawn of the industry.

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SpongeBob, Mean Girls Lead Tony Nominees With 12 Apiece as Viacom Ramps Up Live Events Business

by Stuart Winchester, Viacom

After racking up impressive totals in last week’s Drama Desk and Outer Critics Circle Awards nominations, Nickelodeon’s SpongeBob SquarePants: The Musical and Paramount Pictures’ and Broadway Video’s co-produced Mean Girls have tied at the top of this year’s Tony Award nominations, with 12 apiece, including Best Musical.

The impressive totals among the best of Broadway showcase the ability of Viacom brands to connect with audiences across a range of formats as the company moves deliberately into the live events space under CEO Bob Bakish. As Viacom branches out beyond its core television and film business, each of its six flagship brands will host live events this year, including Comedy Central’s Clusterfest in San Francisco, Nickelodeon’s Slimefest in Chicago, and the BET Experience in Los Angeles.

The pair of musicals, both of which sprang from Viacom’s deep intellectual property library, also earned the top nominations from the Drama Desk and Outer Critics Circle Awards. SpongeBob earned 11 nominations from each institution, while Mean Girls, which is based on the 2004 Paramount movie of the same name, earned 10 Drama Desk and eight Outer Critics Circle considerations.

The full lists of nominations for each award show is below. Both productions are ongoing in New York City. You can buy tickets to SpongeBob SquarePants at the Palace Theater here and to Mean Girls at the August Wilson Theater here.

TONY AWARDS – The 72nd annual Tony Awards will air live on CBS on Sunday, June 10 at 8 p.m. ET

Best Musical

Mean Girls

SpongeBob SquarePants: The Broadway Musical

Best Performance by an Actor in a Leading Role in a Musical

Ethan Slater, SpongeBob SquarePants: The Broadway Musical

Best Performance by an actress in a leading Role in a Musical

Taylor Louderman, Mean Girls

Best Performance by an Actor in a Featured Role in a Musical

Grey Henson, Mean Girls

Gavin Lee, SpongeBob SquarePants: The Broadway Musical

Best Performance by an Actress in a Featured Role in a Musical

Ashley Park, Mean Girls

Best Book of a Musical

Tina Fey, Mean Girls

Kyle Jarrow, SpongeBob SquarePants: The Broadway Musical

Best Original Score (Music and/or Lyrics) Written for the Theatre

Jeff Richmond and Nell Benjamin, Mean Girls

Yolanda Adams, Steven Tyler & Joe Perry of Aerosmith, Sara Bareilles, Jonathan Coulton, Alex Ebert of Edward Sharpe & The Magnetic Zeros, The Flaming Lips, Lady Antebellum, Cyndi Lauper & Rob Hyman, John Legend, Panic! at the Disco, Plain White T’s, They Might Be Giants, T.I., Domani & Lil’C for SpongeBob SquarePants: The Broadway Musical

Best Scenic Design of a Musical

Scott Pask, Finn Ross and Adam Young, Mean Girls

David Zinn, SpongeBob SquarePants: The Broadway Musical

Best Costume Design of a Musical

Gregg Barnes, Mean Girls

David Zinn, SpongeBob SquarePants: The Broadway Musical

Best Lighting Design of a Musical

Kevin Adams, SpongeBob SquarePants: The Broadway Musical

Best Sound Design of a Musical

Brian Ronan, Mean Girls

Walter Trarbach and Mike Dobson, SpongeBob SquarePants: The Broadway Musical

Best Direction of a Musical

Tina Landau, SpongeBob SquarePants: The Broadway Musical

Casey Nicholaw, Mean Girls

Best Choreography

Christopher Gattelli, SpongeBob SquarePants: The Broadway Musical

Casey Nicholaw, Mean Girls

Best Orchestrations

John Clancy, Mean Girls

Tom Kitt, SpongeBob SquarePants: The Broadway Musical

SpongeBob SquarePants – The Broadway Musical for Everyone

DRAMA DESK AWARDS – TheaterMania will present the 63rd Annual Drama Desk Awards at 8:00 p.m. ET on June 3, 2018 at New York’s Town Hall

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Paramount’s Slate of Sequels, Animation, and Cross-Viacom Films Roars to Life at CinemaCon

by Stuart Winchester, Viacom

One of the most shocked-into-silence moments for the audience at Paramount Pictures’ CinemaCon presentation came when Tom Cruise, hero of five previously released Mission: Impossible films, recapped the intensity and challenge of conducting a freefall stunt for the franchise’s forthcoming sixth installment.

“Each take is like running an 800-meter sprint,” Cruise said. “We did 106 takes.”

This blunt understatement captures just one extraordinary moment in one forthcoming film from Paramount, the resurgent studio that over the course of that two-hour presentation unveiled or confirmed new installments to its cherished franchises, sequels to some of its most popular films from new and antique vintage, an aggressive Viacom co-branded slate through its Paramount Players division, a trio of animated adventures, and new films based upon a longstanding and expanded partnership with Hasbro.

“We’re laying the foundation…to deliver to you films for every possible audience for years to come,” Paramount Pictures Chairman and CEO Jim Gianopulos, who has spent the past year building a new management team for the studio, told the audience.

As we zoom (buckled up) toward the July 27 release of Mission: Impossible – Fallout, Paramount confirmed that many of its other most beloved franchises will soon get a new installment. Arnold Schwarzenegger and Linda Hamilton will return in a new Terminator movie next November. And Transformers, which has delivered five more or less contiguous sequels, will, as previously announced, dogleg off into Bumblebee, which hits theaters this Dec. 21.

Director Travis Knight showed off the first Bumblebee clip at the event, telling the audience, “I wanted to return to the essences of what made the Transformer franchise so impactful right from the beginning: character, emotion, spectacle and explosions, lots and lots of explosions.”

Many other films will get their first sequel, including the recently released hit A Quiet Place, 2013’s World War Z, 1988’s Coming to America (look for Coming 2 America), and, as previously confirmed, 1986’s Top Gun, which also stars original Maverick Cruise.

And before he drops a fourth Cloverfield movie on us at some as-yet-to-be-announced future point, J.J. Abrams’ Overlord will transport moviegoers into a bizarro version of behind-enemy-lines World War II on Oct. 26.

Beyond the realm of the sequel, the studio will drop fans into the labrynthian world of Dungeons and Dragons and the sci-fi realm of Micronauts, both through the studio’s partnership with Hasbro (the same partnership behind Paramount’s Transformers and G.I. Joe movies).

Other standalone projects will pit assassin Will Smith against a younger cloned version of himself in Gemini Man, and cast Mark Wahlberg and Rose Byrne as the overwhelmed adoptive parents of three in Instant Family.

Tapping Viacom’s deep content well to co-produce Paramount films has been a priority under CEO Bob Bakish, and the studio confirmed that one of Nickelodeon’s most resiliently popular characters, SpongeBob SquarePants, will return for his third big-screen adaptation, It’s A Wonderful Sponge, in 2020. The film will be one of three newly announced releases on the animation division’s slate, joining Luck – which exposes the millennia-old battle between organizations of good and bad luck – and Monster on the Hill, set in an alternative world of wrestling monsters. Additionally, the previously announced Wonder Park will debut next March.

Other top Viacom brands are joining Nickelodeon in collaborating with Paramount, through the Paramount Players division led by Brian Robbins and formed to further integrate the brands with the movie studio. In association with MTV, Eli, the story of a boy being treated for a rare disease in a clinic-cum-haunted-prison, will roll out in January 2019. BET will reconstitute the 2000 hit What Women Want with What Men Want, portraying a frustrated female sports agent who gains the power of mind-reading. Paramount Players is also working on Nickelodeon’s live-action Dora the Explorer and Are You Afraid of the Dark, both slated for 2019 release.

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Viacom Posts Strong Second Quarter 2018 Earnings, Revitalization Accelerates

by Stuart Winchester, Viacom

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 (NickelodeonNick Jr.MTVBETComedy CentralParamount 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:

  1. 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.
  2. 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.

“That I Can Actually Call That My Job Is Awesome” – Living Viacommunity at Paramount

by Stuart Winchester, Viacom

A Chicken Dinner Served Hot

When lunchtime arrived at the Jamaica orphanage, a knife-wielding worker snatched a chicken from the yard and lopped its head off, shocking the cluster of California volunteers who had stopped off at this hilltop enclave en route to Kingston from Ocho Rios.

Erin Jordan was shocked.

“That’s what they do before they get to the grocery store,” the man said. “I don’t understand why ya’ll don’t get that. But this will be the best chicken you’ll ever have.”

They roasted it over coals on the side of the road. “And you know what?” Jordan said. “It was the best chicken I ever had.”

Jordan is a manager on Paramount Picture’s corporate social responsibility team, a board member of the Sickle Cell Disease Foundation of California, and a veteran of volunteer efforts all over the world, from the inner cities of New York, Washington, D.C., Los Angeles and Phoenix to the favelas climbing Brazilian hillsides. It is these volunteer efforts, she says, that frame her life perspective and ground her sense of place in the world.

“Most of us have so much, and you don’t realize it until you meet people or communities who don’t have that,” Jordan says. “And if I have the time or resources to spare, I’m willing to do that.”

Erin Jordan on a 2002 mission to Bahia, Brazil, to deliver supplies to those in need.

Spreading the Lot’s Influence Beyond the Gates

Like all Viacom brands, Paramount Pictures throws its full weight behind the company’s annual Viacommunity Day (which is coming up this Friday, April 20), when thousands of employees turn their energies over to good causes all over the world.

But long before the trees are planted and the meals are served, the prep begins. For Paramount, that starts with Jordan and the rest of the studio’s corporate social responsibility team. For Viacommunity Day, the small but highly effective team coordinates up to a dozen sites around Los Angeles and supports the international teams as they develop projects. They wrangle supplies and secure permits, and organize an on-site petting zoo and a wrap party, which last year featured Keith Urban joining Paramount staff for game night.

The city-wide events disperse 600 to 800 volunteers around Los Angeles, but once the party raps up and Keith Urban goes home, the studio’s social responsibility team continues their year-round focus on education, HIV/AIDS, and sustainability through Paramount’s Green Team.

They don’t have to travel far. Santa Monica Boulevard Charter sits right across the street from the Paramount lot, in a neighborhood designated a White House Promise Zone under President Barack Obama, and it is a beneficiary of the studio’s Kindergarten to Cap & Gown mentoring program. Jordan helps organize one-to-one student-mentor literacy matches that stretch through most of the school year and in some cases across many years, following the students to junior high.

These immersive long-term engagements can profoundly impact both student and mentor. “When you have more frequent contact with a student as part of an overall plan, I feel that they see you want the best for them and you’re concerned with their success,” Jordan says. “That I can actually do that and call that my job is awesome.”

Classroom reading, kindergarten yoga, dance classes, science labs and playground games – all organized by Jordan and attended by Paramount volunteers on Viacommunity Day – further fuse these powerful student-mentor relationships with the studio’s neighbor.

Building a Better Place to Live

Los Angeles, with its 4 million people sprawled over a vast basin between mountain and ocean, is an easy place to lose yourself. Peppered among the endless tracts tucked within the spider web of freeways are oases for those who need a little help tracking themselves down again. Jordan’s work draws her to these places.

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Viacom Says “Yaaas” to Expansive First-Look TV Deal with Broad City Creators Abbi and Ilana

by Stuart Winchester, Viacom

Following the signing of expansive first-look deals with Tyler Perry and with Trevor Noah’s Day Zero Productions, Viacom has inked a similar comprehensive development agreement with Broad City stars Ilana Glazer and Abbi Jacobson. The move, which crosses all Viacom networks and grants first-look rights to television content created or developed by the pair together or individually, underscores the company’s commitment to identifying and forging close relationships with the best creatives in the industry.

Broad City’s Abbi and Ilana may appear to be aimless and full of hair-brained schemes, but Abbi and Ilana IRL have proven to be stellar creator/writer/performer/director/producers,” said Comedy Central President Kent Alterman. “Their supreme focus on telling new stories, in new worlds, with new talent is nearly scary.”

The expanded partnership further fills out a Comedy Central lineup that was already bolstered by a long-term first-look deal Viacom sealed with Daily Show host Trevor Noah last month. The agreement includes a Paramount Pictures film adaptation of Noah’s bestselling autobiography, Born a Crime: Stories from a South African Childhood.

Viacom CEO Bob Bakish has repeatedly expressed a commitment to better retaining homegrown talent, and the forming of these expansive cross-brand relationships with three of Comedy Central’s marquee names affirms that dedication.

The more intensive alignment with top talent is not limited Viacom’s current stars, however, as demonstrated by the expansive partnership the company signed last year with prolific writer, director, producer and actor Tyler Perry, granting Paramount Pictures first-look rights to his films and guaranteeing 90 episodes of annual content across BET and other Viacom networks beginning next year.

“By prioritizing efforts to work with the best, most versatile talent in the entertainment industry, we are better positioned to deliver must-watch content across our brands and platforms,” Bakish said at the time of the Perry announcement.

Glazer and Jacobson also announced that they will end the hilarious, quirky, two-time Emmy-nominated Broad City with its upcoming fifth season.

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