• by David Goetzl  @dgoetzl, June 3, 2008

As Viacom, MGM and Lionsgate begin preparation for the fall 2009 launch of their pay-TV co-venture, the top challenge is obtaining carriage. And last week, Viacom CEO Philippe Dauman indicated that distributors are chomping at the bit to provide it.

"We have never seen so much interest so quickly at such senior levels from so many distributors on a new service," Dauman said at an industry event.

But Monday, Pali Research analyst Richard Greenfield took issue with the executive's assertion, writing: "Mr. Dauman saying he has never seen distributor interest at the levels this new network is receiving is very hard (if not impossible) for us and investors to believe."

Greenfield, who believes Viacom's stock is undervalued, even after Dauman indicated last week that ad sales may be lagging, also questioned the strategy behind the network. He wrote that the company has "created more investor anxiety than it needed to."

Viacom has more skin in the game as far as the success of the venture--which could include a pay-TV channel, VOD offering and broadband streaming--with both its Paramount studio and MTV Networks divisions involved. Viacom has the largest stake, but not a majority one.

A Viacom rep declined to cite the stake Viacom holds. But a person familiar with the matter said MTVN's involvement in the key affiliate relations aspect ups Viacom's share to a level "somewhat notable" over its two partners.

MTVN's affiliate sales group--which engineers deals for a slew of domestic channels--will use its expertise to land distribution agreements for the new network. "We have very good relationships with all the distributors out there," Dauman said.

MTVN is also expected to take the lead on marketing, with Dauman adding: "We are very good at building brands."

At last week's event, Dauman suggested that Verizon's telco TV service may be an early distributor to sign a deal, which would offer the prospect of interactivity with the programming.

The channel will offer new and library content from the Paramount, MGM and Lionsgate studios. The aim is to add compelling original series as well, perhaps taking advantage of Paramount chief Brad Grey's experience in TV production, where he was instrumental in HBO's "The Sopranos."

On the distribution front, last month Greg Maffei--CEO of Liberty Media, which operates would-be competitor Starz/Encore--suggested that consumer appetite for another pay-TV channel may be only moderate. The same may be the case for distributors, which would be deterred by the $2 to $3 subscriber fees the channel is seeking, Maffei added.