Viacom 'Halfway Done' With Upfront, Pricing Up High Single Digits

As it has done in recent years, Viacom is moving earlier than other networks in inking its upfront TV advertising deals.

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%. 

advertisement

advertisement

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.

Next story loading loading..