A Study of the Ownership and Structure of Viacom Inc. (My First Blog!)

Viacom is one of the largest media conglomerates (Specializing mainly in entertainment media) in the world.

They describe themselves as…

“…a leading global entertainment content company, we know what our viewers want and proudly deliver it across the globe through television, motion pictures and a wide range of digital media.” (Viacom’s Official Website)

Ownership

In regards to who owns this media beast, we can look towards Sumner Murray Redstone. Sumner Murray Redstone is a media tycoon who has majority control over National Amusements. National Amusements owns voting control over Viacom and the majority of it's shares.

National Amusements…
“…holds controlling voting interests in CBS Corporation, Viacom, and Midway Games.”
(Wikipedia)

The National Amusements conglomerate consists mainly of media companies who specialize in entertainment. We can therefore assume that Viacom’s main form of product is entertainment.

Philippe P. Dauman is the man in the top spot at Viacom, he is the current President and Chief Executive Officer (CEO) of Viacom Inc. since the 5th of September 2006. Prior to joining Viacom, he was Co-Chairman and Chief Executive Officer of a private equity firm specializing in media and telecommunications investments that he co-founded with Mr. Thomas E. Dooley (Vice president of Viacom Inc.) from May 2000 until September 2006. Mr. Dauman also held several positions at the former Viacom Inc.

Formats and Types of Program

Viacom does specialize in entertainment media. They split themselves into two media types, Media Networks and Filmed Entertainment.

Under ‘Media Networks’ you will come across such household names as MTV which they own full and exclusive rights to including the MTV Logo and it’s international channels; ‘Comedy Central’ who introduced the world to ‘South Park’ who intern made ‘Comedy Central’ a household name across America in the late 90s. Finally, for the kiddies, ‘Nickleodeon’.

"The World’s Most Valuable Media Brand for seven consecutive years."

Business Week

MTV aims to serve the youth of America with topical programming regarding fashion, politics, lifestyles, sports and trends. MTV's main triumphs have been their deliverance of music and 'unique' products to a global audiences over several media platforms.

Along with their strong grasp on American youth culture, Viacom aim to serve the Black community in America with their ‘BET’ Brand.

"An authentic, unapolagetic viewpoint of the black experience."

BET

“Bet Networks presents the best in Black media and entertainment featuring traditional and digital platforms. Brands including BET, BET J, BET Gospel, BET Hip Hop, BET.com, BET Mobile, BET Event Productions and BET International deliver relevant and insightful content to consumers of Black culture in more than 84 million households.

(Viacom’s Official Website)

Viacom also specialize in filmed media. Their jewel in the crown of Filmed Entertainment is Paramount Pictures Corporation.

"Where audiences go for the movies they love."

Paramount Pictures Corporation

Paramount Pictures is responsible for distributing filmed entertainment from Paramount Pictures, DreamWorks Pictures, DreamWorks Animation, Paramount Vantage, Paramount Classics, Marvel Studios, MTV Films and Nickelodeon Movies.

Paramount as a company have made hundreds of successful, high grossing movies. They are one of the leading film studios in the world and offer a range of cinematic styles and genres for all ages and genders.

With Dreamworks we see more examples of childrens films with the recent 'Shrek The 3rd' grossing $121,629,270 in it's first weekend.

For a full list of Viacom's Companies, please click here.

(Wikipedia)

Means of Distribution

Viacom distribute their media using television, film and a range of 'Digital Media Platforms'. Their extensive use of Television, Film, Internet and other platforms enable them to distribute their products to a very large audience 24/7, thus constantly advertising and fueling the brand and their stock performance.

"Viacom connects with audiences around the world through our brands represented in more than 504 million households in 160 countries and territories. We entertain, engage and educate in 32 languages via our 138 locally programmed and operated TV channels and more than 270 websites. And our global presence grows every day."

For a comprehensive look at Viacom's corporate timeline, please click here.

(Columbia Journalism Revue)

Funding and Revenue

Viacom is funded by it's products.

Through it's distribution of cable telvision products, Viacom gains income from subscribing to it's channels by the public, much like the Great British public subscribing to the BBC's license fee.

Viacom's film products bring in revenue from tickets sales in cinema's, merchandise, DVD and VHS sales. (As well as new media's like blu-ray and HD disc)

Viacom also manufacture video games and video game software for the internet, bringing them further revenue.

Due to Viacom's scale and presence in the global media industry, Viacom earned itself $9.609 billion dollars as of the end of 2005.

Financial results for halfway through 2007.

Viacom's Second Quarter Financial Results 2007

A list of the main shareholders in Viacom.
Viacom's Primary Shareholders

Audience

From these separate companies under the wing of Viacom, we can come to the conclusion that Viacom is aiming itself at an audience who are young at heart and are aware of the changing world that they live in. Their emphasis on knowing what their audience wants suggests that they are confident in their products and their global status as a whole.

The Filmed Entertinment side to Viacom appears to cater for the young market of media consumers, with Dreamworks, Nickleodeon Movies, Marvel Studios and MTV Films all producing media for younger audiences.

Along with its predominantly young audience base, Viacom appear to want to push their audience forward into the future, encouraging them to embrace technology and the means to enjoy the products to their full potential. There mission statement mentions 'digital media' and 'media platforms'. Viacom are leaving behind the days when television, radio and print were the only mediums to get information to the masses, even the internet to some degree. Their focus is very much an exploration of how to get as many of their products to as many people as possible over as many platforms and become the largest media entertainment source in the world.

Their attention to the black audiences of America and their focus on worldwide distribution shows that they have an interest in their image and wish to be regarded as a multi-cultural organisation who care and provide for everyones needs.

It is my opinion that the products Viacom are producing and the clues from their mission statement suggest that their main target audience age ranges from around 5-35, with the exception of specific companies inside Viacom like Paramount Pictures who cater for all ages.

The Effect of Funding and Audience on Viacom

As Viacom are funded by their distribution of products, their audience demographic is essential to their continuation.

Viacom have their fingers in very large pies. Pies that appeal to lot's of people.
MTV (As an example of one of Viacom's pies) is one of the largest entertainment networks for young people in the world.

Young people are often focused on by media companies as not only are they considered important in regards to trends in products but they will potentially become part of the industry in the future.

The BBC sum up the differences in age demographics and how important they are to take into consideration when media companies plan new ventures. Click here for more information.
(www.bbc.co.uk/commisioning)

In regards to funding, Viacom are obviously an enormous company with resources and influence all over the globe. There has been debate over the last few years as to whether it is a good idea to allow a company to grow so large.

This is epitomised by allegations that the News Corporation or rather, Rupert Murdoch is reportedly bias to the right sided (conservative) political climate in American politics. This is apparently demonstrated on the Fox Network.
(Wikipedia)

The big hoo ha behind this is that if a company or tycoon does own a large stake in media across the world, he/she/they have the ability to broadcast products which are specific to one viewpoint, namely their own. The worry behind this is suggesting a state where we are semi-goverened by our media consumption.

This is already true to some degree as people often follow trends created by the media regarding entertainment, fashion and sport. We can therefore assume that with the right type of product, the public can begin to be swayed politically and eventually to the point where they agree whole heartedly with the broadcaster.

This raises concerns for the broadcaster. Organisations who regulate the media become increasingly aware of new techniques the mediauses to better itself. In our ever increasingly PC climate, the media must take into account the type of products they are making and how they are presented to the public.

More and more people feel the need to voice their dissatisfaction with various aspects of the media. Viacom will only continue to grow if they take into account the influence of their audience as a regulatory body against themselves.