Viacom (VIA) competes with other media and broadcasting companies like Time Warner (TWX), News Corp. (NWS), CBS (CBS) and Disney (DIS) in the media and entertainment business. Our price estimate for Viacom's stock stands at $58.36, which is a roughly 10% premium to market price.

Viacom makes money through cable and satellite operators, such as Comcast (CMCSA), Time Warner Cable (TWC), and DirecTV (DTV) that pay Viacom a monthly fee for each of their subscribers that receive Viacom-owned channels such as Nickelodeon, MTV, VH1 and TV Land. Viacom also sells advertising spots on its channels to advertisers like Coca-Cola (KO), Ford (F) and Procter & Gamble (PG). These revenues are partially a function of the total number of U.S. pay-TV households. The modifiable chart below showcases how changes to this metric affect Viacom's stock value.

Continue reading TV Channels Drive 79% of Viacom's Stock Value

TV Channels Drive 79% of Viacom's Stock Value originally appeared on BloggingStocks on Wed, 09 Mar 2011 14:00:00 EST. Please see our terms for use of feeds.

Viacom (VIA) competes with other media and broadcasting companies like Time Warner (TWX), News Corp. (NWS), CBS (CBS) and Disney (DIS) in the media and entertainment business. Our price estimate for Viacom's stock stands at $58.36, which is a roughly 15% premium to market price.

The company recently signed a deal with Hulu to make more of its TV content available on the subscription/ad-supported portal. In its press release Viacom stated that:

Continue reading Viacom's Deal with Hulu Makes Sense

Viacom's Deal with Hulu Makes Sense originally appeared on BloggingStocks on Fri, 04 Mar 2011 13:00:00 EST. Please see our terms for use of feeds.

Distribution of content fascinates me. So does compensation for the talent that generates the content. In my mind, talent is extremely overcompensated via pricey salaries and overgenerous profit-participation schemes. The demands of talent constitute a friction working against the goal of increasing shareholder value in the media industry. Time and time again, we see evidence of the thesis.

These were my thoughts as I checked out Steve Levitan's comments on streaming practices at ABC.com and Hulu that were made in an interview at The Hollywood Reporter. Levitan is one of the creators of the excellent Modern Family series. That really is a quality show, and I'm glad ABC possesses it in its programming portfolio. I'm a shareholder of Disney (DIS), as you might have guessed.

Continue reading Steve Levitan and Hulu: Media Shareholders Should Pay Attention

Steve Levitan and Hulu: Media Shareholders Should Pay Attention originally appeared on BloggingStocks on Sat, 28 Aug 2010 11:40:00 EST. Please see our terms for use of feeds.

Continue reading Akamai on Fire

Akamai on Fire originally appeared on BloggingStocks on Thu, 29 Apr 2010 14:30:00 EST. Please see our terms for use of feeds.

We all knew News Corp.'s (NWS) Avatar would cede the top spot to some film someday. To be honest, I didn't think Sony's (SNE) Dear John would be the one to do it.

According to Box Office Mojo, John grossed roughly $32 million at domestic theaters. That was more than enough to put the sci-fi flick in second place. However, no one should feel sad for News Corp.; Avatar's worldwide haul now stands at over $2.2 billion.

Continue reading Should 'Avatar' Be Rushed to DVD Now That It Is in Second Place?

Should 'Avatar' Be Rushed to DVD Now That It Is in Second Place? originally appeared on BloggingStocks on Mon, 08 Feb 2010 16:00:00 EST. Please see our terms for use of feeds.

Ahhh, Hulu. That wonderful destination where I can re-acquaint myself with my favorite Justin-Timberlake-on-SNL moments, catch up on episodes of Greek, and search for those old Silver Spoons clips I remember so fondly. The two-year-old website is a joint venture between Walt Disney's (DIS) ABC Network, General Electric's (GE) NBC Universal division, and News Corp.'s (NWS) FOX Entertainment Group, and is partially funded by Providence Equity Partners.

But just as online news readers may soon be charged to access The New York Times online, we may have to open our wallets for certain corners of the Hulu universe (they will likely still let me watch Silver Spoons for free).

Continue reading Is the Free Ride Over at Hulu?

Is the Free Ride Over at Hulu? originally appeared on BloggingStocks on Mon, 01 Feb 2010 13:50:00 EST. Please see our terms for use of feeds.

A new executive team is trying to bring MySpace back to its former glory. By focusing on music, videos and games, it hopes to recapture some of its luster. With the MySpace refugees mounting, it's time for some new blood to make some brilliant, future-changing decisions. This week, the company is holding a conference for its global ad sales team to explore ways to bring in traffic and beef up ad spending.

MySpace is poised to haul in $495 million in ad revenue this year, down 15% from last year's $585 million, according to research firm eMarketer. In August, MySpace attracted 64.2 million unique visitors from the United States, off 15% from August 2008, according to comScore, while Facebook pulled in 92.2 million unique U.S. visitors - up more than 100% year-over-year.

Continue reading MySpace (still) refocusing on entertainment content

MySpace (still) refocusing on entertainment content originally appeared on BloggingStocks on Mon, 19 Oct 2009 11:00:00 EST. Please see our terms for use of feeds.

Google Inc. (NASDAQ: GOOG) is dominating online video just like it does internet searches. In August, Google's various video properties went past the 10 billion video view March. In all, the Mountain View, Calif., company took in 40% of all online video viewership, according to comScore.

Of course, the answer to Google's fortunes in online video viewership was YouTube. Google Video didn't account for much at all, as YouTube accounted for 99% of all video viewed on Google's video properties. The only problem: Google continues to not monetize YouTube very well, which has been a point of contention since the 2006 acquisition for $1.65 billion. The good news: YouTube has grown like gangbusters at the same time, and the YouTube acquisition has kept Google at the top of the video viewing field ever since.

Continue reading Google surpasses 10 billion video views in August; 40% market share

Google surpasses 10 billion video views in August; 40% market share originally appeared on BloggingStocks on Wed, 30 Sep 2009 13:00:00 EST. Please see our terms for use of feeds.

Nielsen ratings have always been an imperfect system of projecting who is watching what when. The advent of DVR technology and internet-streamed programming have made the television ratings game even more challenging.

So the major TV companies -- General Electric's (NYSE: GE) NBC Universal, Time Warner (NYSE: TWX), News Corp. (NYSE: NWS), Viacom (NYSE: VIA), CBS Corp. (NYSE: CBS), and Walt Disney (NYSE: DIS) -- have teamed together to fight against Nielsen, which not only delivers arguably flawed data, but charges a hefty fee to do so.

Continue reading TV producers/advertisers hope to make Nielsen ratings a thing of the past

TV producers/advertisers hope to make Nielsen ratings a thing of the past originally appeared on BloggingStocks on Fri, 14 Aug 2009 13:00:00 EST. Please see our terms for use of feeds.

Disney (NYSE: DIS), a media conglomerate that competes with CBS (NYSE: CBS), Viacom (NYSE: VIA), Sony (NYSE: SNE), and Time Warner (NYSE: TWX), will report fiscal second-quarter earnings on Tuesday, May 5. And it appears that investors should be prepared for a significant decline in the bottom line. Analysts believe that income may drop by over 30% to $0.40 per share. Yep, those magical days of profit growth are, for the time being, a thing of the past.

And it's not difficult to understand why. Disney is battling a recession. Consumers aren't spending money. They need all kinds of promotions and discounts to get them to open their wallets. So, theme parks and consumer products are understandably challenged. And then there's the advertising recession. That affects Disney's media properties. DVD sales? They're not as robust as they used to be. All in all, this is not a great time to be a shareholder of the Mouse.

Continue reading Earnings preview: Will Disney's Q2 be a fun ride?

Earnings preview: Will Disney's Q2 be a fun ride? originally appeared on BloggingStocks on Sun, 03 May 2009 14:40:00 EST. Please see our terms for use of feeds.

Continue reading NBC/News Corp.'s Hulu becomes third-largest video website in March

NBC/News Corp.'s Hulu becomes third-largest video website in March originally appeared on BloggingStocks on Thu, 30 Apr 2009 16:30:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Down quarter, but finally an up-month (AMZN, BAC, F, GOOG, DIS)

Closing Bell: Down quarter, but finally an up-month (AMZN, BAC, F, GOOG, DIS) originally appeared on BloggingStocks on Tue, 31 Mar 2009 16:00:00 EST. Please see our terms for use of feeds.

It's all over the news. Media conglomerate Disney (NYSE: DIS) and Google's (NASDAQ: GOOG) YouTube have entered into a deal for the former to supply content to the latter. Not for free, of course. There will be an ad-revenue-sharing model in place. The transaction calls for short-form content at first. This will be derived from ABC and ESPN properties. I assume that, if the short-form stuff works, then long-form stuff will follow pretty soon.

According to Julia Boorstin at CNBC, Disney will have full authority over the ad sales. That's good for shareholders of Disney. But YouTube wins a lot here, too. Google paid quite a bit of money to acquire the platform, and so far, monetization of the user-generated model has not been going smoothly.

YouTube needs to sign deals like these to legitimize its presence. It doesn't want to be known simply as the Cyberland of Copyright Infringement, a wicked, evil digital kingdom where content is stolen, used, and abused. That's how Viacom (NYSE: VIA) sees the site. It has engaged litigation against the company.

Continue reading YouTube traps the Mouse -- who benefits the most?

YouTube traps the Mouse -- who benefits the most? originally appeared on BloggingStocks on Tue, 31 Mar 2009 00:10:00 EST. Please see our terms for use of feeds.

Continue reading Cable companies working to curb free online TV

Cable companies working to curb free online TV originally appeared on BloggingStocks on Mon, 30 Mar 2009 18:00:00 EST. Please see our terms for use of feeds.

Video chain Blockbuster (NYSE: BBI) reported earnings earlier this week for the fourth quarter. While there were some positive aspects to the story, I can tell you that the stock is not a buy at all, at least not from where I sit.

Okay, let me throw some of the good stats out at you. According to the press release, Blockbuster's same-store sales, or comps, are doing well. In Q4, domestic comps rose well over 4%. Free cash flow was positive. And earnings on an adjusted basis calculated out to $0.40 per share. That was a huge beat, since analysts were looking for $0.25 per share.

Continue reading Blockbuster annihilates estimates, but I won't buy it

Blockbuster annihilates estimates, but I won't buy it originally appeared on BloggingStocks on Sat, 21 Mar 2009 12:10:00 EST. Please see our terms for use of feeds.

CBS (NYSE:CBS) has watched the success of Google's (NASDAQ:GOOG) YouTube and Hulu.com, a creation of NBCU and wants in on the action.

According to the FT, to create its portal, "CBS has added content from partners including Sony, Endemol, Metro-Goldwyn-Mayor and PBS, to TV.com, the site it acquired in the $1.8bn takeover last year of CNET Networks, the technology web site operator."

Jack Welch used to say that it was not worth being in a business unless you can have the No.1 or No.2 spot. CBS may disagree to its own peril.

The broadcast company may feel that people are willing to go to any number of site to view video. That is probably not true. According to comScore, CBS is not in the top ten video sites visited by consumers. Most of the other big media companies are on the list. That means CBS would have to jump over a number of its competitors to be viable in the online video business. Those competitors are not likely to sit on the sidelines and allow another party into sector.

CBS has been one of the least successful media companies over that last year, especially based on it stock price. That may be because it has been slow to create an Internet strategy. Now it is adopting the position that "if we build it, they will come." It doesn't work that way.

Douglas A. McIntyre is an editor at 247wallst.com.

CBS want to create video portal originally appeared on BloggingStocks on Mon, 12 Jan 2009 11:00:00 EST. Please see our terms for use of feeds.

Comcast (NASDAQ: CMCSA) will bombard its customers with content. It is opening a new business that will offer its cable subscribers a massive library of films and TV shows that they can also watch on the internet. Comcast hopes to offer up to 6,000 movies.

According to The New York Times, "Comcast is already the world's largest buyer of content, and it is spending about $4.5 billion a year to assemble content from around the world to offer on demand."

While Comcast's TV offerings will be only available to subscribers, its internet video site will be open to the public. But how does that help the company? Comcast is up against established internet video sites, ranging from YouTube to the higher end Hulu. There is abundant video material already on the web.

From a cable VOD standpoint, most consumers only watch the most popular films. Having thousands of extra films is hardly likely to bring in extra subscribers.

Douglas A. McIntyre is an editor at 247wallst.com.

Comcast's new on-demand video business originally appeared on BloggingStocks on Tue, 08 Jan 2008 08:50:00 EST. Please see our terms for use of feeds.

NBC and SanDisk to provide video; Apple sighs originally appeared on BloggingStocks on Thu, 13 Dec 2007 10:19:00 EST. Please see our terms for use of feeds.

And, should YouTube be worried? YouTube is nowhere close to being a broadcast television replacement, with its small-size and substandard video and mono audio. That doesn't mean the technical capability could not be there soon to leapfrog those current limitations and deliver a complete and entertaining experience that would engage each viewer. Google may already be working on this. Say it with me: YouTube 2.

Continue reading Hulu: Should YouTube and iTunes be worried?

Hulu: Should YouTube and iTunes be worried? originally appeared on BloggingStocks on Thu, 01 Nov 2007 12:09:00 EST. Please see our terms for use of feeds.

All of this premium content will be wrapped into a video site, Hulu, and be offered through distribution partners including Microsoft's (NASDAQ: MSFT) MSN, Yahoo! (NASDAQ: YHOO) and MySpace. The issue of whether the content will be available on Google's (NASDAQ: GOOG) YouTube is still open for negotiation.

The new venture appears to be a perfect example of large companies managing a problem to death. It is not clear why Fox and NBC could not have cut their own content distribution deals without having to band together. It is equally unclear why anyone would go to the Hulu site if the content can be seen at larger web properties

Perhaps some of the online media executives at the two networks wanted to make sure that it appeared they were making progress on getting their programming onto the web. It might be a good way to keep a job, at least for now.

Douglas A. McIntyre is an editor at 247wallst.com.

Fox and NBC launch odd website Hulu originally appeared on BloggingStocks on Mon, 29 Oct 2007 09:45:00 EST. Please see our terms for use of feeds.