August Insights Digest: Global Social Media Use, U.S. Kids’ Purchasing Power and More

by Christian Kurz, Global Consumer Insights, Viacom

This time we have an update on the “Hierarchy of Screens,” a video about global social media use, American kids’ role in household purchases, and new research on Saudi teens. As always, on our blog you can find these and all our stories in English, Latin American Spanish and Brazilian Portuguese.

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Nick to Open Its Largest Indoor Theme Park in Mall of China

by Stuart Winchester, Viacom

An artist’s impression of the Nickelodeon theme park that will open in the massive Mall of China.

SpongeBob SquarePants, Dora the Explorer, the PAW Patrol gang, and the Teenage Mutant Ninja Turtles are teaming up for a new adventure: Nick’s iconic crew is headed for Chongqing, China, where they will headline attractions at the largest indoor Nickelodeon theme park in the world.

The 28,000-square-meter entertainment zone, which will live at the heart of the massive Mall of China complex when it opens in 2020, is a vital part of Viacom’s global efforts to seed its popular brands across a range of live events and experiences.

“Creating immersive on-the-ground consumer experiences remains an important part of our business. As we continue to grow the footprint of Nickelodeon theme parks, I am confident this will also open up new opportunities for the Nickelodeon brand and for our partners across multiple platforms in this important Chinese market,” said Viacom International Media Networks (VIMN) Managing Director of Asia Pacific Mark Whitehead.

The park – which VIMN will co-develop with the Mall of China, Jiayuan Group, China Creation Group and Triple Five Group – will showcase 14 Nick properties across 29 attractions, including Asia’s first tilting drop tower and the TMNT launch coaster, which will be the highest, fastest and longest indoor rollercoaster in the world.

Nickelodeon and Viacom’s deep vault of intellectual property translates seamlessly from the screen to a variety of in-person experiences, as Nick’s global network of Nickelodeon-themed branded attractions and parks demonstrates. The Chongqing theme park will join Nickelodeon Universe in Minneapolis’ Mall of America, SeaWorld on the Gold Coast and Wet n Wild Sydney in Australia, Nickelodeon Land at Pleasure Beach Blackpool in the UK, Nickland at Movie Park Germany, Nickelodeon Land at Parque de Atracciones Madrid, and Nickelodeon Lost Lagoon at Sunway Lagoon in Malaysia. Nickelodeon attractions also appear at Universal Studios in Orlando, Florida and Hollywood, California.

“This is testament to the power of Nickelodeon and our iconic characters that fans, kids and families have come to love, which in turn, enables our ability to further boost the Nickelodeon entertainment experience for them,” said VIMN Senior Vice President of Location Based Experiences Gerald Raines.

Three New Seasons of MTV Shuga to Promote Sexual Health in Africa

The MTV drama series Shuga is hoping to help millions of young viewers protect themselves from HIV with three new seasons of the show airing across southern Africa and Francophone west Africa. Unitaid, the MTV Staying Alive Foundation, and the London School of Hygiene & Tropical Medicine will contribute storylines on HIV self-testing, preventive drugs and related issues.

Shuga, which first aired in 2009 and starred Oscar-winning actress Lupita Nyong’o, blends in-depth stories about students across English and, for the first time, French-speaking Africa with informative sexual health information, including how to stay protected from HIV and how to seek out treatment. The latest multimedia “edutainment” campaign is intended to reach previously untapped populations between the ages of 15 to 24 as AIDS remains the leading cause of death among ages 10 to 24 in Africa.

“Millions of people in Africa watch MTV Shuga,” said Lelio Marmora, executive director of Unitaid. “Our partnership with MTV Staying Alive gives us a terrific opportunity to reach young people who don’t have reliable health information and empower them to take charge of their health — including testing themselves for HIV.”

The series is set to debut in South Africa and Côte d’Ivoire between 2018 and 2020.

Nick International Roars for Change: Together for Good Wildlife Special

Lions, giraffes, elephants…oh my!

Kids interested in learning about endangered species can watch Together for Good Wildlife Special, in which Breanna Yde of Nick’s School of Rock guides viewers on a journey through Uganda. On the tour, she discovers key conservation and environmental challenges, and hears from heroes who work daily to protect at-risk wildlife including lions, giraffes, rhinoceroses, elephants and chimpanzees. Digital vignettes supplement the story, creating a vivid, immersive world.

The special was produced through a partnership with the African Wildlife Foundation and Nick International’s social responsibility initiative, Together for Good. The goal is to raise awareness about endangered wildlife and act as a call to action, using Nickelodeon’s globally recognized brand to empower kids to become change-makers.

Nickelodeon star Breanna Yde guides viewers on a journey through Uganda in Nickelodeon International’s Together For Good Wildlife Special, Photo courtesy of Nickelodeon International.

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After Hot U.S. Start, Paramount Network Launches in UK

by Stuart Winchester, Viacom

Since its U.S. debut in January, Paramount Network has quickly bolstered Viacom’s position in the premium content space, with its first three originals – Waco, American Woman, and Yellowstone – drawing strong ratings by fusing quality storytelling with top talent.

Tomorrow, Viacom will launch a free-to-air Paramount Network in the UK, bringing the blend of premium content, unscripted fare, movies and more to one of its top European markets.

“Launching on TV screens in the U.K. is another critical milestone for the Paramount Network brand, which we’re convinced will resonate strongly with British viewers, given Paramount’s distinguished and successful history of epic, cinematic storytelling for global audiences,” said Jill Offman, executive vice president of Comedy Central and Paramount Network International. “Delivering free-to-air content to millions of U.K. households underlines our belief that, despite the growing popularity of on-demand, viewers continue to value highly TV channels that offer an intelligently scheduled linear lineup of quality entertainment.”

The channel will build on the company’s considerable past success in the UK, plugging in the editorial team of Viacom-owned Channel 5 to schedule and program the new Paramount Network.

“Paramount Network is set to deliver high-end Hollywood entertainment with blockbuster movies, scripted drama and critically acclaimed comedy featuring some of the biggest names on the planet,” said Channel 5 Director of Programs Ben Frow. “Supported by Channel 5’s creative scheduling and audience insight and underpinned by Viacom’s brand-building expertise, Paramount Network is a popular premium content destination in a free-to-air world.”

Launch content will include the hit unscripted Lip Sync Battle, the seventh season of the popular Suits, Kaitlin Olsen’s The Mick, action drama Six and fantasy drama Heroes Reborn. Classic movies, some from Paramount Pictures’ 106-year-old library, will also air on the network, which will be available on Sky, BT and Freeview.

The Paramount Network in the UK is the second to launch outside of the United States. Last month, Spain rebranded its existing Paramount Channel, which was one of Viacom’s highest-rated networks outside of the U.S. Content includes a blend of movies and television series, including the locally popular reality show Alaska & Mario: El Huracan Mexicano.

“Paramount Network has great positioning and fits perfectly with our strategy in Spain,” Raffaele Annecchino, president and managing director of Viacom International Media Networks Southern and Western Europe, Middle East and Africa, said when announcing the network’s arrival. “Paramount Channel has achieved great results in Spain, but it’s time to evolve the brand even further, making the channel increasingly contemporary and relevant for the Spanish market.”

“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.”

Viacom Global Insights Digest: June 2018

by Christian Kurz, Global Consumer Insights, Viacom

Viacom’s latest consumer insights include global kids’ fearless attitude toward life, the benefits of social media for all age groups, young Americans’ disappointment in politicians, and from Australia stories on grand-parenting and kids’ happiness. As always, on our blog you can find these and all our stories in English, Latin American Spanish and Brazilian Portuguese.

With strong emotional support networks and broadening skill sets, today’s kids are courageous and resilient.
America’s next generation of voters feels disenfranchised – and plans to vote in November.
A new study reveals that grandparents in Australia cherish their role as caregivers, even though it can come at a cost.
The benefits of social media outweigh the drawbacks, according to our latest research.
Australian kids are happy, independent and resilient. Close relationships with family, friends and pets are the main source of their contentedness.

Viacom Forges Global Content Machine, Reinforcing Growing Premium Business

by Stuart Winchester, Viacom

Viacom’s rapidly growing international division has united two Latin American content powerhouses with its Viacom International Studios (VIS) production unit, transforming the studio into a global content machine with development, production and distribution capabilities. A number of SVOD, pay TV and free-to-air distribution deals will accompany the expansion, which complements and bolsters Viacom’s burgeoning premium content business.

The combination folds the production capabilities of wholly Viacom-owned Argentinian giant Telefe and majority-owned Brazilian comedy brand Porta dos Fundos under the same umbrella as the Miami-based studios that churn out Latin American content for Nickelodeon, MTV, Comedy Central and other Viacom brands.

“Since combining our production and sales forces last year after the acquisitions of Telefe and Porta dos Fundos, our focus has been on creating the highest-quality Spanish- and Portuguese-language content and expanding our distribution beyond Latin America, making the new Viacom International Studios a true global player in Latin American original content,” said VIMN Americas President Pierluigi Gazzolo. “With more than a decade of producing original, hit content for the Viacom brands, and expertise and content delivered through our acquisition of Telefe and investment in Porta dos Fundos, we are growing the reach of our product and client base with SVOD players, MVPDs and broadcast partners around the world. These partnerships are testament to the power of our brands and strength of our original productions.”

Viacom International Studios held a preview of upcoming content for new clients in May, shortly after Viacom announced the formation of the upgraded entity.

The reformulated VIS will inject global scale into many formerly regional properties, unlocking potential for high-quality content to reach a far larger audience. Fox Networks Latin America, for example, will distribute Telefe’s thriller movie Animal (from Oscar-winning screenwriter Armando Bo), on digital and linear platforms across the region, while Netflix will air the Comedy Central-Porta dos Fundos co-produced Borges in Latin America. Nickelodeon and Italy’s Rainbow Group will co-produce the 60-episode Club 57 time-travel epic, with VIS handling global distribution and Rainbow Group retaining rights in their home country.

Viacom President and CEO Bob Bakish hinted at the potential of distributing local content across worldwide channels at the recent MoffettNathanson Media & Communications Summit in New York City.

“But those local cornerstones are not only about our strength in those particular markets, but they’re also content engines more broadly, and one of the things you’re going to see that you haven’t really seen yet is our Telefe asset becoming a major producer of novela product for the world,” he said. “We’re going to be distributing about 700 hours globally, that’s not something that Telefe used to do. It’s something I’m very excited about.”

This ramping up of Spanish- and Portuguese-language content production with studios in Miami, Buenos Aires and Rio de Janeiro will act as a powerful international complement to Viacom’s burgeoning premium content capabilities under Paramount Pictures’ Paramount Television production studio. Behind hits such as USA Network’s Shooter, Netflix’s 13 Reasons Why, and TNT’s The Alienist, Paramount Television has grown from nothing just a few years ago into a sought-after production hub with anticipated revenues of $400 million in 2018 alone.

“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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Channel 5 Cruises to First BAFTA Award With Jane McDonald Travel Doc

Channel 5’s Cruising With Jane McDonald is a British docu-series that features former cruise ship singer Jane McDonald as she tours lux ships around the world. Earlier this month, at the BAFTA (British Academy of Film and Television Arts) Awards, the travel documentary snagged Channel 5’s first-ever BAFTA Award for Best Feature.

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