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buddy of mine wrote this paper this sem for school, this is only half of it btw
basically shows what they own. good read
Viacom Inc. is one of the most influential media conglomerates since its inception in 1971. Sumner Redstone, Chairman and Senior Member of the Executive Board, transformed this mediocre company into a multinational media giant in just a few short years after its acquisition. Viacom’s total revenue in the first three quarters of 2003 adds up to approximately $19 billion.
The influence that this media mogul wields touches the lives of people at all corners of the world. To a large degree, our very way of life has formed a symbiotic relationship with the services provided by the mass media. Whether it is unknown villagers starting up Internet companies on obscure Pacific islands like Tuvalu, or soldiers in Iraq calling home or emailing love ones halfway around the world. There is hardly anyone on the face of the earth who does not rely, in way or another, on the power of the media.
Viacom is one of the most influential media empires in the history of postindustrial society. The many facets of this megalithic corporation dictate to a certain degree our cultural norms and values, and the way we think and act. In large, the depth at which media giants like Viacom permeate and influence our culture is largely unnoticed or taken for granted by the public. The scope of this paper will provide the reader with a general overview of the different dimensions of this company. A survey of the major components of Viacom is important in building a foundation of understanding powerful institutions that underpin our society and the world as a whole.
Highlights in Viacom History
Viacom is based out of New York. It is a formidable player in the media industry both nationally and internationally. Household brand names include CBS, MTV, Nickelodeon, Paramount Pictures, Infinity, Showtime, Blockbuster and Simon & Shuster. Significant US and overseas holdings that encompass broadcast and cable television, radio, outdoor advertising and online services makes the company one of the most powerful media companies in the world.
Viacom originated as a US cinema operator, moved into cable television and
film/television production/distribution (Paramount), video rentals (Blockbuster), and the national CBS television network. Recent developments of the corporation has been working negotiations with numerous countries around the globe which help account for over $19 billion in revenues for the first nine months of 2003, up from almost $17.8 billion the previous year. Net earnings in the first nine months of 2003 amount to over $1.8 billion – a significant increase from $73.3 million, the previous year (SEC, Form 10-Q, 2002).
Viacom was originally created by CBS in 1971. At the time, the Federal Communications Commission (FCC) prohibited television networks from owning cable systems and TV stations in the same market. CBS got around ownership issues by forming a new company – Viacom. It then began buying cable systems around the United States. In 1978 it formed Showtime and in 1981 Music Television (MTV).
In 1986, Viacom was bought out by Sumner Redstone’s National Amusement Inc., a large cinema organization. In 1994, Viacom diversified even more by buying Paramount Communications, Inc., one of Hollywood’s oldest film studios. This deal included Simon & Shuster publishing group, and Blockbuster Entertainment Corporation. Blockbuster is a huge profit earning division of Viacom. Presently, the company owns about 81% of the total equity in stock, and about 96% of the voting power of Blockbuster (SEC, Form 10-K, 2003).
In 1999, changes in media ownership rules paved the way for Viacom to legally acquire CBS. Viacom came full circle with its parent company, CBS, which once created and owned Viacom. On May 4, 2000, the merger with CBS was finalized. The total purchase price of CBS is estimated nearly $40 billion. As a result of the Viacom/CBS merger, the company acquired approximately 65% equity in Infinity Broadcasting Corporation. In 2001, Infinity merged into its own subsidy of the company (SEC, Form 10-K, 2002).
In January 2001, Viacom completed its acquisition of BET Holdings II, Inc. This
includes BET Cable Network and BET Jazz, among other services, for a total of
approximately $3 billion.
Entertainment Divisions
Viacom entertainment revenue for 2002 accounts for 15%. This indicates a decrease from 2000’s consolidated revenue of 17%. Viacom’s entertainment divisions include Paramount Pictures, Paramount Parks, Simon & Schuster, and Famous Players (SEC, Form 10-K, 2002).
Paramount Pictures
Paramount Pictures was one of the original major studios, with a 2,500 title
library that includes Forrest Gump and Mission Impossible. Success of motion pictures
varies, ranging from cost of production and public turn out at theatres. Profit maximizing
of movie productions is realized through Viacom’s vertically integrated ownership.
Paramount Pictures generally distributes its movies outside the US and Canada through
United International Pictures (UPI), a company owned by Viacom and an affiliate of
Universal Studios.
Paramount Theme Parks
Paramount Parks is one of the largest theme park operators, garnering around 13
million visitors annually at its five North American parks. In fall 2001, Paramount Parks
entered an agreement to manage and operate a theme park located in Benidorm, Spain. In
2003, Paramount Parks further diversified its assets by entering into another agreement to
manage Bonfante Gardens, a theme park in Gilroy, California (SEC, Form 10-K, 2002).
Simon & Schuster
Simon & Schuster publishes more than 2,100 titles annually under 38 trade, mass market, children’s and new media imprints (Hoovers, 2003). Simon & Schuster publishes and distributes consumer books under titles such as Simon & Schuster, Pocket Books, Scribner, and the Free Press.
Famous Players Cinema
Famous Players, founded in 1920, is a major Canadian cinema operator, with 822
screens in 87 locations across Canada. Famous Players has entered a joint venture with
IMAX. United International Pictures, in which Viacom has a 33% interest, handles
general distribution of Paramount Pictures’ films outside the United States and Canada.
United Cinemas International (UCI), a 50% joint venture between Viacom and Universal,
operates approximately 1,120 screens in 121 theatres around the world including
countries such as the UK, Eire, Germany, Austria, Spain, and Japan, to name a few. It is
one of the largest operators of multiplex theatres outside the United States (SEC, Form
10-K, 2002).
Television Entertainment Divisions
CBS
In 2002, the television segment of Viacom accounted for approximately 30% of revenue. This shows an increasing trend in revenue from 27% in 2000 (SEC, Form 10-K, 2002). The CBS Television Network includes more than 200 affiliate stations, with program content ranging from Survivor to CSI. Through CBS Television Network come three major branches: CBS News, CBS Sports, and CBS Entertainment. CBS Radio Network is also a subgroup under the CBS umbrella but not part of the television group.
The Viacom Television Stations Group consists of 39 television stations reaching 15 of the top 20 television markets in the US, through 16 owned and operated CBS stations and 18 UPN-affiliated stations. It includes duopolies in six major markets, with CBS and UPN station in Philadelphia, Boston, Dallas, Detroit, Miami, and Pittsburg. Cable Networks in 2002 accounted for 19% of consolidated revenues (SEC, Form 10-K, 2002). A duopoly in the television industry means that the same corporate parent owns at least two media outlets in the same geographical area.
KCAL-TV
On May 15, 2002, Viacom acquired KCAL-TV in Los Angeles. This gave the company a duopoly in the market because it already owned KCBS-TV in the same market area in Los Angeles. The company’s level of television broadcast penetration reach approximately 44% of all US television households. Viacom took the issue to court to challenge the FCC’s ownership rule. Under the old duopoly rule, Viacom could own only one television station per market. Under the new rule, Viacom can own two stations (SEC, Form 10-K, 2002).
Paramount Television
Paramount Television, offshoot of Paramount Studios, is a major supplier of television programming for the broadcast, first-run syndication, and cable markets with over 55,000 hours of programming in its library. Production units include Spelling Television (Hoovers, 2003).
Broadcast and Cable Divisions
MTV
Viacom owns and operates advertiser based television programs through MTV and BET and a premium subscription network through Showtime. The target age group for MTV consists mostly of 18 to 24 year olds. Programs include music videos, music and general lifestyle information, reality-based programming, comedy and dramatic scenes, interviews, and more. Popular programs include: The Osbournes, MTV Cribs, and The Real World. In addition, MTV hosts annual events such as the MTV Music Awards, The MTV Movie Awards, and MTV Icon. In 2002, MTVN purchased College Television Network (CTN), a program offered to college campuses providing a mix of music, news, sports, and college-specific programming (Hoovers, 2003).
MTV Networks
MTV Networks owns and operates basic cable television programming services, including MTV Music Television and MTV2 (342 million households in 140 territories), Nickelodeon/Nick At Nite, TV Land (300 million households via localized channels and individual programs), VH1 Music First (8 channels reaching over 93 million households), TNN (86 million homes in North America). Viacom’s BET – Black Entertainment Television – is the largest national cable network serving African Americans (around 65 million households); BET International reaches 30 countries in Europe and 36 countries in Africa (Hoovers, 2003).
Viacom’s broadcast and television arms – United Paramount Network (UPN),
Showtime Networks and Comedy Central – reach over 86% of US television homes
through affiliated stations. Programs include Buffy the Vampire Slayer and the Star Trek
series (Hoovers, 2003).
Retail
Blockbuster is the world’s leading renter of videos and video games with over 7,600 stores in the United States and 28 other countries. It boasts that over 3 million customers visit a Blockbuster store each day. In 2002, Blockbuster accounted for 23% of Viacom’s total revenue. Viacom owns about 80.4% equity in Blockbuster Inc. (SEC, Form 10-K, 2002).
A competitive advantage that Blockbuster has over other movie distribution outlets is the speed at which movie releases reach home video. In 2002, Blockbuster concentrated on its sale of viewed movies and games to complement movie rentals. Blockbuster DVD rentals increased from 18.5% of its total rental revenues in 2001 to 39% of its total revenues in 2002. Game rentals increased as a result of a strong advertising campaign in 2002. During 2002, revenues from movie and game sales increased almost 76% from 2001 (SEC, Form 10-K, 2002).
Radio Broadcasting
Infinity merged with Viacom in February 2001, known as the “Infinity Merger”. Prior to the merger, Infinity was owned by CBS in December 1996. Infinity Broadcasting is one of the largest radio broadcasters in the United States, where it owns and operates 185 radio stations.
Infinity owns the CBS Radio Network, which is managed by Westwood One, Inc. Infinity Radio’s concentration on large markets attracts advertisers. Large markets pull in highly skilled management, employees, and on-air talent, as compared to buying more radio stations in smaller markets. Infinity’s ability to concentrate on larger markets allows it to efficiently manage business which leads to an increase in revenue flow (SEC, Form 10-K, 2002).
Music Publishing
Famous Music Publishing is one of the top ten music publishers in the United States, with a catalog of over 100,000 works that include contemporary music and film scores. Viacom Consumer Products licenses on behalf of Paramount Pictures, Paramount Television, Viacom Productions, Spelling Television and third-parties. CBS Enterprises provides domestic and international film and television program distribution services, including syndication of Wheel of Fortune, Jeopardy, and The Opera Winfrey Show. Paramount Home Entertainment distributes videos and DVDs of theatrical releases from Paramount Pictures, Paramount Classics, Nickelodeon Movies, MTV Films and non-theatrical releases.
Outdoor Advertising
Infinity’s outdoor advertising units, Infinity Outdoor and TDI Worldwide, comprise one of the two largest outdoor advertising operations in the US, Canada, Mexico, and Europe. Earnings generated by Infinity in 2002 totaled 15% of Viacom’s total revenue (SEC, Form 10-K, 2002).
New Media – Online
Two of the most recent additions to the CBS group are CBS.com and CBSNews.com. In 2002, their websites collectively attracted more than 1 billion hits. According to a leading audience survey study, both websites attract a monthly average of 4.8 million. Among the most popular services that CBS.com is responsible are television network websites, online subscription services, and fantasy leagues (SEC, Form 10-K, 2002).
Conclusion
In closing, we have examined one of the most influential media conglomerates in
the history of mass communication. Additionally, this paper has provided a broad
overview of the main branches that make up Viacom as a whole. The main branches that
are included in this essay are Viacom’s Entertainment Divisions, Television
Entertainment Divisions, Broadcast and Cable Divisions, retail, advertisement, and many
others. A close examination of these elements allows the reader to have a better
understanding of the power concentration of this media giant.
basically shows what they own. good readViacom Inc. is one of the most influential media conglomerates since its inception in 1971. Sumner Redstone, Chairman and Senior Member of the Executive Board, transformed this mediocre company into a multinational media giant in just a few short years after its acquisition. Viacom’s total revenue in the first three quarters of 2003 adds up to approximately $19 billion.
The influence that this media mogul wields touches the lives of people at all corners of the world. To a large degree, our very way of life has formed a symbiotic relationship with the services provided by the mass media. Whether it is unknown villagers starting up Internet companies on obscure Pacific islands like Tuvalu, or soldiers in Iraq calling home or emailing love ones halfway around the world. There is hardly anyone on the face of the earth who does not rely, in way or another, on the power of the media.
Viacom is one of the most influential media empires in the history of postindustrial society. The many facets of this megalithic corporation dictate to a certain degree our cultural norms and values, and the way we think and act. In large, the depth at which media giants like Viacom permeate and influence our culture is largely unnoticed or taken for granted by the public. The scope of this paper will provide the reader with a general overview of the different dimensions of this company. A survey of the major components of Viacom is important in building a foundation of understanding powerful institutions that underpin our society and the world as a whole.
Highlights in Viacom History
Viacom is based out of New York. It is a formidable player in the media industry both nationally and internationally. Household brand names include CBS, MTV, Nickelodeon, Paramount Pictures, Infinity, Showtime, Blockbuster and Simon & Shuster. Significant US and overseas holdings that encompass broadcast and cable television, radio, outdoor advertising and online services makes the company one of the most powerful media companies in the world.
Viacom originated as a US cinema operator, moved into cable television and
film/television production/distribution (Paramount), video rentals (Blockbuster), and the national CBS television network. Recent developments of the corporation has been working negotiations with numerous countries around the globe which help account for over $19 billion in revenues for the first nine months of 2003, up from almost $17.8 billion the previous year. Net earnings in the first nine months of 2003 amount to over $1.8 billion – a significant increase from $73.3 million, the previous year (SEC, Form 10-Q, 2002).
Viacom was originally created by CBS in 1971. At the time, the Federal Communications Commission (FCC) prohibited television networks from owning cable systems and TV stations in the same market. CBS got around ownership issues by forming a new company – Viacom. It then began buying cable systems around the United States. In 1978 it formed Showtime and in 1981 Music Television (MTV).
In 1986, Viacom was bought out by Sumner Redstone’s National Amusement Inc., a large cinema organization. In 1994, Viacom diversified even more by buying Paramount Communications, Inc., one of Hollywood’s oldest film studios. This deal included Simon & Shuster publishing group, and Blockbuster Entertainment Corporation. Blockbuster is a huge profit earning division of Viacom. Presently, the company owns about 81% of the total equity in stock, and about 96% of the voting power of Blockbuster (SEC, Form 10-K, 2003).
In 1999, changes in media ownership rules paved the way for Viacom to legally acquire CBS. Viacom came full circle with its parent company, CBS, which once created and owned Viacom. On May 4, 2000, the merger with CBS was finalized. The total purchase price of CBS is estimated nearly $40 billion. As a result of the Viacom/CBS merger, the company acquired approximately 65% equity in Infinity Broadcasting Corporation. In 2001, Infinity merged into its own subsidy of the company (SEC, Form 10-K, 2002).
In January 2001, Viacom completed its acquisition of BET Holdings II, Inc. This
includes BET Cable Network and BET Jazz, among other services, for a total of
approximately $3 billion.
Entertainment Divisions
Viacom entertainment revenue for 2002 accounts for 15%. This indicates a decrease from 2000’s consolidated revenue of 17%. Viacom’s entertainment divisions include Paramount Pictures, Paramount Parks, Simon & Schuster, and Famous Players (SEC, Form 10-K, 2002).
Paramount Pictures
Paramount Pictures was one of the original major studios, with a 2,500 title
library that includes Forrest Gump and Mission Impossible. Success of motion pictures
varies, ranging from cost of production and public turn out at theatres. Profit maximizing
of movie productions is realized through Viacom’s vertically integrated ownership.
Paramount Pictures generally distributes its movies outside the US and Canada through
United International Pictures (UPI), a company owned by Viacom and an affiliate of
Universal Studios.
Paramount Theme Parks
Paramount Parks is one of the largest theme park operators, garnering around 13
million visitors annually at its five North American parks. In fall 2001, Paramount Parks
entered an agreement to manage and operate a theme park located in Benidorm, Spain. In
2003, Paramount Parks further diversified its assets by entering into another agreement to
manage Bonfante Gardens, a theme park in Gilroy, California (SEC, Form 10-K, 2002).
Simon & Schuster
Simon & Schuster publishes more than 2,100 titles annually under 38 trade, mass market, children’s and new media imprints (Hoovers, 2003). Simon & Schuster publishes and distributes consumer books under titles such as Simon & Schuster, Pocket Books, Scribner, and the Free Press.
Famous Players Cinema
Famous Players, founded in 1920, is a major Canadian cinema operator, with 822
screens in 87 locations across Canada. Famous Players has entered a joint venture with
IMAX. United International Pictures, in which Viacom has a 33% interest, handles
general distribution of Paramount Pictures’ films outside the United States and Canada.
United Cinemas International (UCI), a 50% joint venture between Viacom and Universal,
operates approximately 1,120 screens in 121 theatres around the world including
countries such as the UK, Eire, Germany, Austria, Spain, and Japan, to name a few. It is
one of the largest operators of multiplex theatres outside the United States (SEC, Form
10-K, 2002).
Television Entertainment Divisions
CBS
In 2002, the television segment of Viacom accounted for approximately 30% of revenue. This shows an increasing trend in revenue from 27% in 2000 (SEC, Form 10-K, 2002). The CBS Television Network includes more than 200 affiliate stations, with program content ranging from Survivor to CSI. Through CBS Television Network come three major branches: CBS News, CBS Sports, and CBS Entertainment. CBS Radio Network is also a subgroup under the CBS umbrella but not part of the television group.
The Viacom Television Stations Group consists of 39 television stations reaching 15 of the top 20 television markets in the US, through 16 owned and operated CBS stations and 18 UPN-affiliated stations. It includes duopolies in six major markets, with CBS and UPN station in Philadelphia, Boston, Dallas, Detroit, Miami, and Pittsburg. Cable Networks in 2002 accounted for 19% of consolidated revenues (SEC, Form 10-K, 2002). A duopoly in the television industry means that the same corporate parent owns at least two media outlets in the same geographical area.
KCAL-TV
On May 15, 2002, Viacom acquired KCAL-TV in Los Angeles. This gave the company a duopoly in the market because it already owned KCBS-TV in the same market area in Los Angeles. The company’s level of television broadcast penetration reach approximately 44% of all US television households. Viacom took the issue to court to challenge the FCC’s ownership rule. Under the old duopoly rule, Viacom could own only one television station per market. Under the new rule, Viacom can own two stations (SEC, Form 10-K, 2002).
Paramount Television
Paramount Television, offshoot of Paramount Studios, is a major supplier of television programming for the broadcast, first-run syndication, and cable markets with over 55,000 hours of programming in its library. Production units include Spelling Television (Hoovers, 2003).
Broadcast and Cable Divisions
MTV
Viacom owns and operates advertiser based television programs through MTV and BET and a premium subscription network through Showtime. The target age group for MTV consists mostly of 18 to 24 year olds. Programs include music videos, music and general lifestyle information, reality-based programming, comedy and dramatic scenes, interviews, and more. Popular programs include: The Osbournes, MTV Cribs, and The Real World. In addition, MTV hosts annual events such as the MTV Music Awards, The MTV Movie Awards, and MTV Icon. In 2002, MTVN purchased College Television Network (CTN), a program offered to college campuses providing a mix of music, news, sports, and college-specific programming (Hoovers, 2003).
MTV Networks
MTV Networks owns and operates basic cable television programming services, including MTV Music Television and MTV2 (342 million households in 140 territories), Nickelodeon/Nick At Nite, TV Land (300 million households via localized channels and individual programs), VH1 Music First (8 channels reaching over 93 million households), TNN (86 million homes in North America). Viacom’s BET – Black Entertainment Television – is the largest national cable network serving African Americans (around 65 million households); BET International reaches 30 countries in Europe and 36 countries in Africa (Hoovers, 2003).
Viacom’s broadcast and television arms – United Paramount Network (UPN),
Showtime Networks and Comedy Central – reach over 86% of US television homes
through affiliated stations. Programs include Buffy the Vampire Slayer and the Star Trek
series (Hoovers, 2003).
Retail
Blockbuster is the world’s leading renter of videos and video games with over 7,600 stores in the United States and 28 other countries. It boasts that over 3 million customers visit a Blockbuster store each day. In 2002, Blockbuster accounted for 23% of Viacom’s total revenue. Viacom owns about 80.4% equity in Blockbuster Inc. (SEC, Form 10-K, 2002).
A competitive advantage that Blockbuster has over other movie distribution outlets is the speed at which movie releases reach home video. In 2002, Blockbuster concentrated on its sale of viewed movies and games to complement movie rentals. Blockbuster DVD rentals increased from 18.5% of its total rental revenues in 2001 to 39% of its total revenues in 2002. Game rentals increased as a result of a strong advertising campaign in 2002. During 2002, revenues from movie and game sales increased almost 76% from 2001 (SEC, Form 10-K, 2002).
Radio Broadcasting
Infinity merged with Viacom in February 2001, known as the “Infinity Merger”. Prior to the merger, Infinity was owned by CBS in December 1996. Infinity Broadcasting is one of the largest radio broadcasters in the United States, where it owns and operates 185 radio stations.
Infinity owns the CBS Radio Network, which is managed by Westwood One, Inc. Infinity Radio’s concentration on large markets attracts advertisers. Large markets pull in highly skilled management, employees, and on-air talent, as compared to buying more radio stations in smaller markets. Infinity’s ability to concentrate on larger markets allows it to efficiently manage business which leads to an increase in revenue flow (SEC, Form 10-K, 2002).
Music Publishing
Famous Music Publishing is one of the top ten music publishers in the United States, with a catalog of over 100,000 works that include contemporary music and film scores. Viacom Consumer Products licenses on behalf of Paramount Pictures, Paramount Television, Viacom Productions, Spelling Television and third-parties. CBS Enterprises provides domestic and international film and television program distribution services, including syndication of Wheel of Fortune, Jeopardy, and The Opera Winfrey Show. Paramount Home Entertainment distributes videos and DVDs of theatrical releases from Paramount Pictures, Paramount Classics, Nickelodeon Movies, MTV Films and non-theatrical releases.
Outdoor Advertising
Infinity’s outdoor advertising units, Infinity Outdoor and TDI Worldwide, comprise one of the two largest outdoor advertising operations in the US, Canada, Mexico, and Europe. Earnings generated by Infinity in 2002 totaled 15% of Viacom’s total revenue (SEC, Form 10-K, 2002).
New Media – Online
Two of the most recent additions to the CBS group are CBS.com and CBSNews.com. In 2002, their websites collectively attracted more than 1 billion hits. According to a leading audience survey study, both websites attract a monthly average of 4.8 million. Among the most popular services that CBS.com is responsible are television network websites, online subscription services, and fantasy leagues (SEC, Form 10-K, 2002).
Conclusion
In closing, we have examined one of the most influential media conglomerates in
the history of mass communication. Additionally, this paper has provided a broad
overview of the main branches that make up Viacom as a whole. The main branches that
are included in this essay are Viacom’s Entertainment Divisions, Television
Entertainment Divisions, Broadcast and Cable Divisions, retail, advertisement, and many
others. A close examination of these elements allows the reader to have a better
understanding of the power concentration of this media giant.
