Viacom, Inc. (VIAB)’s Next Growth Drivers? – Scripps Networks Interactive, Inc. (SNI) and Discovery Communications Inc. (DISCA)

Page 1 of 2

Viacom, Inc. (NASDAQ:VIAB) has nearly always had catalysts in the works, be it in the cable television or film arena, which surpassed expectations and gave a jumpstart to its profitability. Namely, MTV’s Jersey Shore and the numerous Paramount / DreamWorks Animation collaborations, such as the Transformers films, have provided support to earnings. Last year ended on a soft note as Nickelodeon continued an ongoing slump and film receipts were unimpressive. Still, the company appears to have a strong pipeline of newly created content, including some that could help reinvigorate Viacom’s bottom line.

Viacom, Inc. (NASDAQ:VIAB)Cable Programming Rollouts

MTV is adhering to its youth-oriented reality shows, the most prominent being Catfish, a TV Show that debuted in 2012. This program seems the most likely candidate to replace Jersey Shore as MTV’s ratings star. Others like Teen Mom 2 are also seeing healthy viewership. Both of those hits, as well as Viacom, Inc. (NASDAQ:VIAB)’s VH1 content are significantly more popular among the 18 to 49 aged demographic coveted by advertisers. Along with bulking up its primetime offerings, MTV is benefiting from weekend marathons of previously-aired episodes.

Additionally, Nickelodeon is spending record amounts on building a new slate of shows, primarily animated programs. Notably, the Monsters vs. Aliens series will be one of six to launch between now and September. Moreover, Comedy Central is introducing six of its own shows, while Spike and BET are also producing new programming.

The goal is to continue to draw audiences amid a growing landscape of media available to consumers. Viacom now has to contend with the rise of Scripps Networks Interactive, Inc. (NYSE:SNI) and Discovery Communications Inc. (NASDAQ:DISCA), along with heightened Internet traffic. Scripps Networks Interactive, Inc. (NYSE:SNI) is the owner of such networks as The Food Network, HGTV, Travel Channel, DIY, and others. Its investments in programming are bearing fruit, spurring profit gains as it takes share from major media conglomerates. SNI shares are a worthwhile selection at this time. As for Discovery Communications Inc. (NASDAQ:DISCA), it too is gaining earnings momentum, partly by way of higher subscriber counts. DISCA shares are trending upward, but long-term investors might want to wait for a better entry point.

Viacom’s advantage resides in its ownership of proven characters, like SpongeBob, its creative talent, and its resources as a global entertainment consortium. Accordingly, it will likely remain a top-notch broadcaster of youth cable programming.

Paramount’s Slate Improves

For 2013, Viacom’s film unit will probably post better results given the schedule of upcoming releases. Last year its top two box office films were Flight and Jack Reacher, disregarding the DWA productions. In March, it will offer up a G.I. Joe sequel, followed up by a Star Trek film later in the year, in addition to a production by Transformers director Michael Bay and World War Z starring Brad Pitt.

The likelihood is strong that these films will support increased DVD sales, as well, allowing for a turnaround in the important December quarter. Print and advertising costs, if kept down, ought to not be a hindrance to improved profitability. Plus, the sale of children’s consumer merchandise might well climb behind these films.

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 Click to see monthly returns in table format!

Lists

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

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!