A Nick in Time: Viacom, Inc. (VIAB), Ads and Streaming

Page 1 of 2

So advertising can still get it done, apparently.

That’s a surprise to me, frankly. To think that a company like Viacom, Inc. (NASDAQ:VIAB) can still see growth in the ad sales of one of its – admittedly flagship – cable networks in this age of cash-for-content is a confusing sign.

Viacom, Inc. (NASDAQ:VIAB)

All the recent data indicates that consumers are moving away from ad-supported media, yet still Nickelodeon – which is owned by Viacom, Inc. (NASDAQ:VIAB)– saw ad revenue grow 7% year-over-year. That, in the face of analyst predictions that sales would drop 1%, is enough to boost Viacom a bit in the markets – nearly 3% in one day.

Viacom – investment worthy?

12 month growth P/E EPS Div. Yield Net Margin
39.1% 15.5 4.24 1.7% 17.2%

Look, Viacom is diverse. It’s more than just one cable channel; it’s a lot of them, and a big chunk of the company also makes content for distribution. It’s a large firm with many revenue streams. Still, the fact that the company can make some money – instead of losing it – on a kids network is an interesting development.

Everything about the company screams investment worthy – the growth, dividend, EPS and margin are all where you’d want them to be for the industry. Even the P/E of about 15.5 just shows that others think it’s worth investing in, even if they haven’t gone overboard about it.

Most interesting of all, the world seems to think that Viacom, Inc. (NASDAQ:VIAB) can keep it up even in the face of streaming. That’s the real challenge. Can traditional advertising survive in the face of people being willing to pay directly for content that doesn’t include ads? It’s only one data point, but the Viacom news indicates that there’s an opportunity to do so.

Streaming dreaming

The issue confronting Viacom, Inc. (NASDAQ:VIAB) is whether the company will be able to negotiate its deal with Netflix, Inc. (NASDAQ:NFLX) .

Netflix

12 month growth P/E EPS Div. Yield Net Margin
154.2% 510.5 0.42 n/a 0.5%

The deal that Viacom has with Netflix is set to expire this month. That’s a significant cash-blow to Viacom if the firm can’t come to some terms. Viacom says that it expects content licensing to grow by 10% this year, while Netflix, Inc. (NASDAQ:NFLX) thinks it’ll pay the same amount when a deal is reached.

Those are direct comparisons, as Viacom, Inc. (NASDAQ:VIAB) licenses to more than just Netflix and Netflix is thinking of just licensing some of the content and so forth. Still, it indicates that there won’t be a boost in revenue from Netflix, Inc. (NASDAQ:NFLX) unless something gives.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

The 15 Most Murderous Countries in the World

10 Largest Colleges in the World: Bigger Isn’t Always Better

Comedians in Cars Getting Coffee: The 6 Comedians Seinfeld Needs to Interview

Easy Money: The 10 Most Successful Investors in the World Today

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!