About Viacom Inc.. Viacom Inc. Is One Of The Largest Media

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About Viacom Inc. Viacom Inc. is one of the largest media company in the world with leading positions in broadcast and television, radio, outdoor advertising and online. The company operates its business through two segments: Media Networks and Filmed Entertainment. It provides entertainment content through its TV channels like Nickelodeon, MTV, VH1, Comedy Central, and others. Viacom’s filmed entertainment segment produces, finances, acquires, and distribute motion pictures under the banner of Paramount Pictures, MTV Films, and others. The company also provides online content services like video-on-demand, pay television, basic cable television, and many more. Viacom Inc is publicly traded on NASDAQ at $33.99 price per share as of May 18,…show more content…
In 2014, Viacom profit margin was 30%, highest in 5 years, whereas the peer group average was 25%. This higher value of profit margin can be attributed to the increase in the revenue generated from their media network segment, mainly from advertising and affiliate revenues. There was a significant 20% increase from international advertising due to acquisition of Channel 5 Broadcasting Limited (UK), however, the other revenue was driven by news channels, MTV Italy, and improvement in European markets. Moreover, its affiliate revenue was increased remarkably by $415 million because of higher fees rate, as well as the benefit of distribution agreements. In contrast to income, Viacom had reduced their overall expenses by $257 million, however, they had incurred more expenses for their media network component. Company’s media network segment expenses increased by $340 million in comparison to prior year mainly due to higher operating and selling, general & administrative expenses. This increase in expenses was attributed to their investment in the original content and programming cost. Distribution expenses were also increased due to higher participations expense and costs from news channels in international markets. They also spent lot of money in advertising and promotional expenses to market their original programmes. Overall, Viacom had an outstanding performance in

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