Four brand groups emerge
- Comedy Central, Paramount Network, and TV Land
- MTV, VH1, CMT, and Logo
- BET Networks
Viacom said the restructuring is meant to streamline operations of its media unit and enhance the ability of the media teams to coordinate programming and share resources.
Viacom’s media revenue fell 2.0%
The restructuring of the media unit at Viacom comes only a few weeks after Walt Disney (DIS) also unveiled a new executive team that will steer its television group once it completes the $71.3 billion transaction to purchase a bundle of 21st Century Fox (FOX) assets.
Media network operation is Viacom’s largest business. The media group revenue fell 2.0% YoY to $2.5 billion in Viacom’s third quarter of fiscal 2018, which ended in June, resulting in overall revenue falling 3.8% YoY to $3.2 billion.
Working with market disruptors
Like all other traditional media companies, Viacom operates in a market that is being disrupted by Internet companies. However, Viacom’s response to that disruption has been different than that of many of its industry peers. While companies like AT&T (T), Dish Network (DISH), and Disney have moved to create their own streaming video services to counter the threat from the likes of Netflix and Amazon, Viacom has chosen to work with the disruptors rather than challenge them. For example, Viacom has contracts to produce shows for Netflix.