Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Viacom, Inc. (VIA) Should’ve Seen Netflix, Inc. (NFLX) Coming, Says Russ Frushtick

Viacom, Inc. (NASDAQ:VIA) is taking a $785 million write down for restructuring but can the media titan really blame the likes of Netflix, Inc. (NASDAQ:NFLX), Hulu and other entertainment creators and delivery platforms for its problems?

According to Russ Frushtick in an interview on Fox Business, Viacom, Inc. (NASDAQ:VIA) should have seen Netflix, Inc. (NASDAQ:NFLX), Hulu and any other competitors in the online space coming.

Viacom, Inc. (NASDAQ:VIA), in a statement about the massive restructuring cost it is taking, said that the massive charge reflects “accelerated amortization of programming expenses associated with a change in the company’s ultimate revenue projections”. These projections are for “certain original programming genres that have been impacted by changing media consumption habits,” the company said.

In other words, Netflix, Inc. (NASDAQ:NFLX) and others like YouTube have radically changed the way people consume content.

It can be said that the group Netflix, Inc. (NASDAQ:NFLX) is a part of give people a lot of choices, therefore shows that Viacom, Inc. (NASDAQ:VIA) is buying for reruns are less valuable than initially thought.

Viacom, is VIA a good stock to buy, is VIAB a good stock to buy, NASDAQ:VIA, NASDAQ:VIAB, Netflix, is NFLX a good stock to buy, NASDAQ:NFLX, Russ Frushtick

According to Frushtick, there is little demand for old shows now which Viacom, Inc. (NASDAQ:VIA) bought to have reruns. People are expecting new content, the technology consultant said and the Internet is giving them a constant stream of content to consume.

If people are getting their new content from the Internet, there’s no reason why people would want to turn on their televisions and go to MTV to watch a rerun of a show they have already watched in the past, he added.

In the past five years, the shows Viacom purchased like Spongebob, Community and CSI were top-tier shows, the analyst said, but in the current landscape, they are just not as highly ranked.

Furthermore, Frushtick said that reality shows which Viacom’s channels like MTV are fond of producing have also decreased in value and viewership. This is why even though reality shows are relatively cheap to produce, the company is still having problems with content and viewership.

Frushtick also talked about Ford Motor Company (NYSE:F)’s latest innovations when it comes to automating cars.

Warren Buffett’s Berkshire Hathaway owned about 8.63 million Viacom, Inc. (NASDAQ:VIA) shares by the end of the last quarter of last year. Carl Icahn’s Icahn Capital LP owned about 1.41 million Netflix, Inc. (NASDAQ:NFLX) shares by the end of the same period.

I just made 84% in 4 daysI Just Made 84% in 4 Days By Blindly Following This Hedge Fund

I just made 84% in 4 days by blindly imitating a hedge fund’s stock pick. I will tell you how I pulled such a huge return in such a short time but let me first explain in this FREE REPORT why following hedge funds’ stock picks is one of the smartest things you can do as an investor. We launched our quarterly newsletter 2.5 years ago and not one subscriber has, since, said ‘I lost money by EXACTLY following your stock picks’. The reason is simple. You can beat index funds by creating a DREAM TEAM of hedge fund managers and investing in only their best ideas. I just made 84% in 4 days by blindly imitating one of these best ideas. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.