Speaking at Gabelli & Company Movie & Entertainment Conference, Philippe Dauman, chairman/chief executive officer of Viacom, says: “We have been active in the upfront market. We are more than halfway done.”
He adds: “We are achieving high single-digit [percentage] price increases and mid- to-single-high-digit [percentage] volume increases in the business that we have written.”
This year is estimated to be slightly stronger in terms of upfront gains for broadcast and cable networks -- both in pricing and volume. Projections are that pricing will be up 5% to 7%, with volume up from 3% to 4%.
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Dauman says that Viacom recently renewed carriage deals with satellite TV provider Dish Network and cable operator Cox Communications at high single-digit-percentage price increases. Viacom now says 80% to 85% of its affiliate revenue comes from its top six networks, and 90% to 95% from its top eight networks.
The company has over 40 potential investors that are looking at buying a 49% stake of Paramount Pictures, Dauman says. Operationally, he says: “Paramount Pictures has had a tough year.”
In the near future, the studio plans to make 15 films a year, emphasizing its franchises. Dauman says there will be a “Transformers” movie early in the year for the next three years. Viacom will also focus on animation, and is in the process of starting up a TV production division.
With regard to its highly public corporate battles, which included Dauman being removed from the board of trustees of National Amusements, Viacom controlling company, he says, “It’s a lot more fun in creating the content, than being the content.