In a panel discussion on CNBC, about which media buy should we consider right now between America’s major media moguls, CBS Corporation (NYSE:CBS) and Viacom, Inc. (NASDAQ:VIAB), Tuna N. Amobi, senior equity analyst at S&P, inclined towards CBS.
Amobi gave a positive verdict for both companies, but gave a strong buy on CBS Corporation (NYSE:CBS). “We have a strong buy on CBS [and] buy on Viacom, Inc. (NASDAQ:VIAB)”, he said. He justified Wall Street’s prediction of better growth outlook for CBS by referring to the media major’s more diversified revenue streams.
“Over the last two years’ sheets, CBS has been able to change the narrative and kind of focus away from more cyclical revenue streams like advertising into a kind of a steady stream and new revenue streams,” he explained.
Analysts feel that CBS Corporation (NYSE:CBS) offers better content than Viacom, Inc. (NASDAQ:VIAB). But not everyone agrees. There is an opinion that the CBS content appears better owing to its targeted audience, which is predominantly an adult population. Viacom, however, caters to the younger generation which is currently in the process of being split up into a number of different channels.
Viacom, Inc. (NASDAQ:VIAB) has not upgraded its preteen programming to suit the ever changing tastes of today’s preteen audience. Nickelodeon has to revamp its content if it plans to compete with other players on the scene such as The Walt Disney Company (NYSE:DIS), which has good programming and a better market strategy. While MTV tries its best to bring a turnaround in favor of Viacom, it will not be able to do so without major backing from other Viacom offerings.