WHOWANTSMY MTV?
Viacom CEO to push music in bid to revive brand
It’s déjà vu all over again at MTV.
New Viacom Chief Executive Bob Bakish told Wall Street on Thursday that the network is going to dump dramasandget back to its original strategy of music and reality shows.
There will also be more live events and movie tie-ins, Bakish said.
“MTVembarked on a heavy scripted strategy versus MTV internationally, and it ultimately didn’t really work,” Bakish told analysts on a conference call.
A refocused MTV was part of a larger strategy unveiled by Bakish to turnaround whathas become a moribund Via com.
The media giant will focus on six core brands — MTV, BET, Comedy Central, Nickelodeon, NickJr., andParamount Network — to get most of the Sumner Redstone family-controlled company’s assets.
Via com shares have suffered of late, as boardroom dramas and a lack of fresh programming (which cut into ratings andadrevenues) deflated Wall Street’s confidence in the $18 billion company.
Bakish’s plans for a comeback seemedto jazz investors.
Viacom shares gained 4.3 percent onThursday, to $43.89.
MTV can use all the help Bakish can provide — and fast. Its current crop of scripted shows, including “Scream” and “Teen Wolf,” have posted ratings declines of more than 40 percent this season. To help stop the bleeding, MTV has beenrunningatwo-hourblock of “Friends” to win youngsters to prime time.
“It’s a bridge strategy,” Bakish admitted.
Mina Lefevre, MTV’s head of scripted programming, said Wednesday she was leaving the companyfor Facebook.
Viacom’s other cable networks — VH1, CMT, Logo and TV Land — will become support networks. Spike is to be rebranded as Paramount Network, which already exists outside the US.
Bakish, Viacom’s international chief until hewasnamed CEO in December, has clearly been busy — and he needed to be.
Key cable distributors are rankled over Viacom’s inclusion in skinnier over-the-top bundles. Its fat cable bundles are said to be the most expen- sive among those not offering any sports.
With ratings tumbling, there are rumblings from distributors about dumping the cable programmer. The ever-diplomatic Bakish on Thursday stressed the importance of working with distributors in newways.
“There is a need to emphasize partnerships more than we ever have, rather than a zero-sum economic negotiation,” Bakish said, suggesting that Viacom could leverage data and product expertise to help operators build revenue.
Bakish also seemed to give groundtopay-TVpartnersupset about online TV bundles that have more flexibility about which networks to carry.
“We’ re being highly selective in agreements with over-thetop providers, confining them to library content,” he said.
Meanwhile, in theDecember quarter, Via com reported profits of $1.04 a share—beating Street estimates by 20 cents.
Revenue in the period rose 5 percent, to $3.3 billion, thanks to theatrical revenue and growth in domestic affiliate revenue.
Operating income was off 16 percent, to $706 million, because of restructuring costs related to severance of its top executives.
The firm saw a 3 percent decline in domestic ad revenue in the December quarter and a 1 percent increase internationally.