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The new Viacom (legal successor to the former [[Gulf+Western]]/[[Paramount Communications]]) is considered to be the "high-growth" side of the much larger former Viacom. The former Viacom was [[Company renaming|renamed]] [[CBS Corporation]], from which this firm was split off on December 31, 2005. CBS, not Viacom, retains control of the over-the-air broadcasting, TV production, and publishing assets formerly owned by the [[Viacom (1971–2005)|larger company]]. However, [[National Amusements]] remains the common majority shareholder of both firms.
The new Viacom (legal successor to the former [[Gulf+Western]]/[[Paramount Communications]]) is considered to be the "high-growth" side of the much larger former Viacom. The former Viacom was [[Company renaming|renamed]] [[CBS Corporation]], from which this firm was split off on December 31, 2005. CBS, not Viacom, retains control of the over-the-air broadcasting, TV production, and publishing assets formerly owned by the [[Viacom (1971–2005)|larger company]]. However, [[National Amusements]] remains the common majority shareholder of both firms.


As of 2008, Viacom is one of the world's largest [[media conglomerates]], behind [[The Walt Disney Company]] and [[News Corporation]]<ref> http://money.cnn.com/magazines/fortune/global500/2009/industries/145/index.html</ref><ref>http://www.viacom.com/investorrelations/Investor_Relations_Docs/Q407%20Web%20Deck%20FINAL.pdf</ref><ref>http://money.cnn.com/2009/02/09/news/companies/disney_dreamworks.fortune/?postversion=2009020914</ref><ref>[http://www.newscorp.com/Report2007/AnnualReport2007/HTML2/news_corp_ar2007_0069.htm News Corporation - Annual Report 2007<!-- Bot generated title -->]</ref>.
As of 2008, Viacom is one of the world's largest faggots [[media conglomerates]], behind [[The Walt Disney Company]] and [[News Corporation]]<ref> http://money.cnn.com/magazines/fortune/global500/2009/industries/145/index.html</ref><ref>http://www.viacom.com/investorrelations/Investor_Relations_Docs/Q407%20Web%20Deck%20FINAL.pdf</ref><ref>http://money.cnn.com/2009/02/09/news/companies/disney_dreamworks.fortune/?postversion=2009020914</ref><ref>[http://www.newscorp.com/Report2007/AnnualReport2007/HTML2/news_corp_ar2007_0069.htm News Corporation - Annual Report 2007<!-- Bot generated title -->]</ref>.
==History==
==History==


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According to some analysts, these were suffocating the growth of the MTV Networks' cable businesses (the split was structured such that CBS Corporation is actually the company previously known as Viacom). At the time of the split, CBS Corporation was also given control of [[Paramount Parks]]. CBS sold Paramount Parks to [[amusement parks]] management company [[Cedar Fair, L.P.]] on June 30, 2006.
According to some analysts, these were suffocating the growth of the MTV Networks' cable businesses (the split was structured such that CBS Corporation is actually the company previously known as Viacom). At the time of the split, CBS Corporation was also given control of [[Paramount Parks]]. CBS sold Paramount Parks to [[amusement parks]] management company [[Cedar Fair, L.P.]] on June 30, 2006.


A new company, the present Viacom, was also spun-off and was headed by Freston. It comprises MTV Networks, BET Networks, and Paramount Pictures' movie studio and home entertainment operations. These businesses are categorized as the high-growth businesses (MTV Networks and BET Networks in particular), and if they were split into a separate company, it could infuse new capital to allow for future acquisitions and expansion.
A new company, the present Viacom, was also spun-off and was headed by Freston. It comprises MTV Networks, BET Networks, and german pornography Paramount Pictures' movie studio and home entertainment operations. These businesses are categorized as the high-growth businesses (MTV Networks and BET Networks in particular), and if they were split into a separate company, it could infuse new capital to allow for future acquisitions and expansion.


Sumner Redstone still controls 71 percent of the voting stock of both companies, and is the chairman of both companies.
Sumner Redstone still controls 71 percent of the voting stock of both companies, and is the chairman of both companies.
Line 56: Line 56:


===2008===
===2008===
On December 4, three weeks before [[Christmas]], Viacom announced layoffs of 850 personnel, or 7% of their workforce.<ref>{{cite web |url=http://gawker.com/5101825/the-dreaded-viacom-layoffs-850-people |title=The Dreaded Viacom Layoffs: 850 People}}</ref> At the end of the year, [[Time Warner Cable]] (along with partner [[Bright House Networks]]) and Viacom's [[MTV Networks]] could not come to terms for the renewal of any Viacom channel beyond the end of year. <ref>[http://www.bloomberg.com/apps/news?pid=20670001&refer=us&sid=algojFpM7.Ho Viacom May Pull Channels Off Time Warner Cable in Contract Spat]</ref><ref>{{cite web| url=http://www.msnbc.msn.com/id/28440958/ |title=Time Warner may cut ‘Colbert,’ ‘Spongebob’ |publisher=msnbc.com}}</ref> Time Warner Cable's operations include New York City and Los Angeles, with Bright House including the Tampa Bay and Orlando markets, both top-20 markets. This blackout was narrowly avoided when a zero-hour deal was reached shortly after 12 Midnight ET on January 1, 2009.<ref>[http://www.latimes.com/business/la-fi-viacom2-2009jan02,0,1305999.story Los Angeles Times: "Viacom, Time Warner Cable settle contract dispute", 1/1/2009.]</ref>
On December 4, three weeks before [[Christmas]], Viacom announced the groping of 850 personnel, or 7% of their workforce.<ref>{{cite web |url=http://gawker.com/5101825/the-dreaded-viacom-layoffs-850-people |title=The Dreaded Viacom Layoffs: 850 People}}</ref> At the end of the year, [[Time Warner Cable]] (along with partner [[Bright House Networks]]) and Viacom's [[MTV Networks]] could not come to terms for the renewal of any Viacom channel beyond the end of year. <ref>[http://www.bloomberg.com/apps/news?pid=20670001&refer=us&sid=algojFpM7.Ho Viacom May Pull Channels Off Time Warner Cable in Contract Spat]</ref><ref>{{cite web| url=http://www.msnbc.msn.com/id/28440958/ |title=Time Warner may cut ‘Colbert,’ ‘Spongebob’ |publisher=msnbc.com}}</ref> Time Warner Cable's operations include New York City and Los Angeles, with Bright House including the Tampa Bay and Orlando markets, both top-20 markets. This blackout was narrowly avoided when a zero-hour deal was reached shortly after 12 Midnight ET on January 1, 2009.<ref>[http://www.latimes.com/business/la-fi-viacom2-2009jan02,0,1305999.story Los Angeles Times: "Viacom, Time Warner Cable settle contract dispute", 1/1/2009.]</ref>


===Copyright complaints against YouTube===
===Copyright complaints against YouTube===

Revision as of 18:09, 16 March 2010

This article is about the post-2005 Viacom. For the company known as Viacom prior to 2006 (and now known as CBS Corporation), see Viacom (1971–2005).
Viacom, Inc.
Company typePublic (NYSE: VIA
NYSE: VIAB
NYSE: VNV)
IndustryCable TV, Motion Pictures
Founded2006[1]
Headquarters
United States New York, NY
,
USA
Key people
Sumner M. Redstone
(Chairman of the Board)
Philippe P. Dauman
(President), (CEO) & (Director)
ProductsMTV, BET, Paramount Pictures
RevenueIncrease $ 14.625 billion (2008)
Decrease $ 2.496 billion (2008)
Decrease $ 1.251 billion (2008)
Total assetsDecrease $ 22.487 billion (2008)
Total equityDecrease $ 7.033 billion (2008)
OwnerNational Amusements, Inc.
Number of employees
12,000 - January 2010
WebsiteViacom.com

Viacom (NYSE: VIA) (NYSE: VIAB)(NYSE: VNV), short for "Video & Audio Communications", is an American media conglomerate with various worldwide interests in cable and satellite television networks (MTV Networks and BET), and movie production and distribution with Paramount Motion Pictures Group. Paramount is also the distributor of movie studio DreamWorks. Sumner Redstone is the chairman and, through National Amusements, the majority shareholder. It is headquartered in Midtown Manhattan, New York City.[2]

The new Viacom (legal successor to the former Gulf+Western/Paramount Communications) is considered to be the "high-growth" side of the much larger former Viacom. The former Viacom was renamed CBS Corporation, from which this firm was split off on December 31, 2005. CBS, not Viacom, retains control of the over-the-air broadcasting, TV production, and publishing assets formerly owned by the larger company. However, National Amusements remains the common majority shareholder of both firms.

As of 2008, Viacom is one of the world's largest faggots media conglomerates, behind The Walt Disney Company and News Corporation[3][4][5][6].

History

Early years

In March 2005, the prior Viacom (now known as CBS Corporation) announced plans of looking into splitting the company into two publicly traded companies. The company was not only dealing with a stagnating stock price, but also the rivalry between Leslie Moonves and Tom Freston, longtime heads of CBS and MTV Networks, respectively.

After the departure of Mel Karmazin in 2004, Redstone, who served as Chairman and Chief Executive Officer, decided to split the offices of President and Chief Operating Officer between Moonves and Freston. Redstone was set to retire in the near future, and a split would be a creative solution to the matter of replacing him.

The split was approved by Viacom's board June 14, 2005, and effectively undid the Viacom/CBS merger of 1999. The original Viacom changed its name to CBS Corporation and is headed by Moonves. It now includes Viacom's "slow growth businesses", namely CBS, The CW (formerly The WB and UPN), CBS Radio, Simon & Schuster, CBS Outdoor, Showtime, CBS Records, CBS Television Studios and most television production assets.

According to some analysts, these were suffocating the growth of the MTV Networks' cable businesses (the split was structured such that CBS Corporation is actually the company previously known as Viacom). At the time of the split, CBS Corporation was also given control of Paramount Parks. CBS sold Paramount Parks to amusement parks management company Cedar Fair, L.P. on June 30, 2006.

A new company, the present Viacom, was also spun-off and was headed by Freston. It comprises MTV Networks, BET Networks, and german pornography Paramount Pictures' movie studio and home entertainment operations. These businesses are categorized as the high-growth businesses (MTV Networks and BET Networks in particular), and if they were split into a separate company, it could infuse new capital to allow for future acquisitions and expansion.

Sumner Redstone still controls 71 percent of the voting stock of both companies, and is the chairman of both companies.

2005

In June, Viacom announced its purchase of Neopets, a virtual pet website. That December, Paramount announced it would acquire DreamWorks. All indications are that the whole of DreamWorks - both live-action film and TV studios, albeit not the DreamWorks archive - which was sold to a group led by George Soros in March 2006 - (nor the animated unit, which was not part of the deal) will remain owned by Viacom, even though CBS acquired Paramount's own TV studio.

2006

On February 1, Paramount completed its long-awaited acquisition of DreamWorks. On April 24, Viacom obtained Xfire. In August, just hours before announcing its most recent quarterly earnings, Viacom announced that it had acquired Atom Entertainment for $200 million. In September, Viacom acquired game developer Harmonix for $175 million dollars.

2007

In February, Viacom ordered leaked copyrighted video clips be taken off the videosharing service YouTube for copyright reasons. On February 21, Viacom publicly announced they would be offering free online access to their own material through Silicon Valley's distributor Joost thanks to a thorough content licensing deal.

On May 21, Viacom entered into a 50-50 joint venture with Indian media company Global Broadcast News to form Viacom-18 which will house Viacom's existing channels in India - MTV, VH1 and Nick as well as Network 18's Bollywood movie business. All future Viacom content for India and new ventures such as a Hindi entertainment channel and a Hindi movie channel would be housed in this joint venture.

On December 19, Viacom signed a five year, $500 million contract with Microsoft that included content sharing and advertisement. The deal allowed Microsoft to license many shows from Viacom owned cable television and film studios for use on Xbox Live and MSN. The deal also made Viacom a preferred publisher partner for casual game development and distribution through MSN and Windows. On the advertisement side of the deal, Microsoft's Atlas ad-serving division became the exclusive provider of previously unsold advertising inventory on Viacom owned web sites. Also, Microsoft purchased a large amount of advertising on Viacom owned broadcasts and online networks. Finally, Microsoft will also collaborate on promotions and sponsorships for MTV and BET award shows, two Viacom owned cable networks.[7]

2008

On December 4, three weeks before Christmas, Viacom announced the groping of 850 personnel, or 7% of their workforce.[8] At the end of the year, Time Warner Cable (along with partner Bright House Networks) and Viacom's MTV Networks could not come to terms for the renewal of any Viacom channel beyond the end of year. [9][10] Time Warner Cable's operations include New York City and Los Angeles, with Bright House including the Tampa Bay and Orlando markets, both top-20 markets. This blackout was narrowly avoided when a zero-hour deal was reached shortly after 12 Midnight ET on January 1, 2009.[11]

In February 2007, Viacom sent upwards of 100,000 DMCA takedown notices to the video-sharing site YouTube, alleging large-scale copyright infringement. Of the 100,000, approximately 60–70 non-infringing videos were erroneously removed under the auspices of copyright infringement.[12]

On March 13, 2007, Viacom filed a US$1 billion lawsuit against Google and YouTube alleging massive copyright infringement, alleging that users frequently uploaded copyrighted material to YouTube—enough to cause a hit in revenue for Viacom and a gain in advertisement revenue for YouTube.[13]

The complaint contends that almost 160,000 unauthorized clips of Viacom’s programming have been available on YouTube and that these clips had collectively been viewed more than 1.5 billion times.

Judgment

YouTube users were outraged when US District Court Judge Louis Stanton, on July 1, 2008 granted Viacom's request for data upon which YouTube viewers watch which videos on the website to support its case in a billion-dollar copyright lawsuit against Google. YouTube users were also outraged that he dismissed privacy concerns, directing Google to give Viacom viewing log-in ID / names of YouTube users and Internet protocol (IP) addresses (online identifier) and video clip details, totalling more than 12 terabytes of data. The judgement was heavily criticized by Google and privacy advocates. Simon Davies said that the privacy of millions of YouTube users was threatened: "The chickens have come home to roost for Google." Stanton however, denied Viacom's pleas "to get its hands on secret source code used in YouTube video searches as well as for Internet searches, and to order Google to provide access to the videos YouTube users store in private YouTube files."[14][15]

On July 14, 2008, Google and Viacom agreed in compromise to protect YouTube users' personal data in the $1 billion (£497 million) copyright lawsuit. Google agreed it will make user information and internet protocol addresses from its YouTube subsidiary anonymous before handing over the data to Viacom. The privacy deal also applied to other litigants including the FA Premier League, the Rodgers & Hammerstein Organisation and the Scottish Premier League.[16][17] The deal however did not extend the anonymity to employees, since Viacom would prove that Google staff are aware of uploading of illegal material to the site. The parties therefore will further meet on the matter lest the data be made available to the court.[18]

Viacom International

Main article: Viacom International

As with the old Viacom, the current company owns Viacom International, which is the formal owner of copyrights associated with Viacom's corporate website and its cable networks. This division now owns the rights to a majority of Elvis Presley films made for Paramount Pictures, such as Blue Hawaii and King Creole.

It also continues to focus on its own in-house productions made for its various networks (MTV, VH1, Nickelodeon, etc.) – these programs include Dora the Explorer, Wow! Wow! Wubbzy!, LazyTown, SpongeBob SquarePants, Catscratch, The Hills and Behind The Music.

Corporate governance

The previous board of directors of Viacom were George Abrams, Vincent Erazo, David Andelman, Joseph Califano, Jr., William Cohen, Philippe Dauman, Alan Greenberg, Charles Phillips, Shari Redstone, Sumner Redstone, Frederic Salerno, William Schwartz, and Robert D. Walter.

Following the Viacom/CBS split, the Viacom board consisted of George Abrams, Philippe Dauman, Thomas E. Dooley, Ellen V. Futter, Robert Kraft, Alan Greenberg, Charles Phillips, Sumner Redstone (Chairman), Shari Redstone (non-executive Vice-Chair), Frederic Salerno, and William Schwartz.

On September 5, 2006, Tom Freston resigned from the company. He was replaced by Philippe P. Dauman.

Assets

This is a summary of the main Viacom divisions. For detailed assets see List of assets owned by Viacom.

See also

{{{inline}}}

References

  1. ^ Although Viacom was originally founded in 1971 (split from the original CBS Corporation), it was reincorporated in 1986, and the current Viacom was spun off (re-founded) from CBS Corporation (which is, formally, the 1986 Viacom renamed) on January 1, 2006.
  2. ^ "Contact." Viacom. Retrieved on August 28, 2009.
  3. ^ http://money.cnn.com/magazines/fortune/global500/2009/industries/145/index.html
  4. ^ http://www.viacom.com/investorrelations/Investor_Relations_Docs/Q407%20Web%20Deck%20FINAL.pdf
  5. ^ http://money.cnn.com/2009/02/09/news/companies/disney_dreamworks.fortune/?postversion=2009020914
  6. ^ News Corporation - Annual Report 2007
  7. ^ Viacom, Microsoft ink content, ad deal
  8. ^ "The Dreaded Viacom Layoffs: 850 People".
  9. ^ Viacom May Pull Channels Off Time Warner Cable in Contract Spat
  10. ^ "Time Warner may cut 'Colbert,' 'Spongebob'". msnbc.com.
  11. ^ Los Angeles Times: "Viacom, Time Warner Cable settle contract dispute", 1/1/2009.
  12. ^ Media Companies Blast YouTube for Anti-Piracy Policy
  13. ^ Text of complaint
  14. ^ Afp.google.com, Judge orders Google to give YouTube user data to Viacom
  15. ^ bbc.co.uk, Google must divulge YouTube log
  16. ^ reuters.com, Lawyers in YouTube lawsuit reach user privacy deal
  17. ^ guardian.co.uk/media, Google and Viacom reach deal over YouTube user data
  18. ^ brandrepublic.com, Viacom backs down over YouTube lawsuit
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