Viacom (NYSE: VIA), a media business that competes with Disney (NYSE: DIS), Time Warner (NYSE: TWX), News Corp. (NYSE: NWS), General Electric's (NYSE: GE) NBC Universal, and Sony (NYSE: SNE), doesn't have a lot to brag about in its third quarter. Revenue went up only 4%. Adjusted earnings fell 15% to $0.55, beating expecations by a penny. But I doubt that's much comfort in this particular case, considering that operating income at the company's media networks division dipped 4%, and an operating loss was reported for the studio division due to difficult comparisons (i.e., Transformers helped the year-ago quarter).

Like clockwork, Executive Chairman Sumner Redstone praised Viacom's content and fully supported CEO Philippe Dauman. Maybe Redstone should take a strong look at Viacom and sit the CEO down and have a serious discussion with him about the realities of entertainment programming. Right now, MTV is suffering from ratings challenges. Dauman has to step up his game in this regard.

I mean, come on, MTV is a powerful brand with the youth, and he needs to lean on the folks running it to work harder and become more innovative and creative. I will say that I liked that the earnings release mentioned a desire to engage better cost controls at its studio division. Paramount definitely needs to lower overhead expenses. Hollywood likes to spend money; shareholders most certainly do not. So I think Redstone should aggressively make this clear to Dauman.