Viacom Will Increase the Breadth of Its Media in Fiscal 2016



Viacom’s media brands

Viacom (VIAB) expects to increase the breadth of its programming across its different media brands in fiscal 2016. In this part of the series, we’ll look at how Viacom’s different media brands are positioned in fiscal 2016 in both US and international markets.

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Last year, Viacom made a strategic change as it distributed its media networks into three segments: Music, Nickelodeon, and Entertainment. Nickelodeon’s popular new TV shows such as PAW Patrol and Blaze and the Monster Machines are fueling the company’s revenue growth in consumer products.

Viacom is increasing its focus on the growth of its media properties under the Nickelodeon brand. The company is also developing games for some of its properties. For example, for its TV show Game Shakers, the company has developed a game that is available for download.

The company is churning out new episodes of its TV shows at a significantly higher rate than before. It has also increased the physical size of its production and animation facility in Burbank, California.

Viacom believes that it’s in a good position to monetize its programming in the United States as well as in international markets, considering Nickelodeon’s strong footprint in international markets.

MTV and Comedy Central

For MTV, Viacom expects to step up its music and unscripted programming in fiscal 2016. The company will continue with its scripted programming such as Shannara Chronicles on MTV. MTV had a total of 851 million subscribers globally in the period between July and September 2015.

Comedy Central has ten new originals in the pipeline. Viacom has stated that its Comedy Central shows have shown significant monetization capability across multiple platforms, including mobile platforms such as Verizon Communications’ (VZ) go90. The company intends to exploit this capability by continuing its strong investment in programming for Comedy Central.

Viacom accounts for 0.32% of the PowerShares QQQ Trust Series 1 ETF (QQQ). QQQ also holds 10.7% of Apple (AAPL), 8.6% of Microsoft (MSFT), and 5.3% of Alphabet (GOOG). For an investor interested in exposure to the television sector, QQQ has 4.4% exposure to the sector.


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