If the ad industry recovers modestly next year, as many people anticipate, it probably won't help Viacom. That's according to analyst Richard Greenfield of Pali Capital. He is dropping
his prediction for Viacom's 2010 U.S. ad sales to a decrease of 3%. He previously estimated a 2% increase.
Greenfield's position is that the cable network conglomerate, which
includes MTV, VH1 and Comedy Central, has had a hard time hanging onto viewers, and advertisers are following suit.
"Viacom's ratings remaining mostly down year-over-year during Q3" he says. "It feels aggressive to say that Viacom could turn its ratings positive over the next couple of quarters and could conceivably grow ad revs in 2010." he says.