Updated: read below: A combination of a bad quarter for Entertainment and one-time charges dragged Viacom’s net income for 4Q05 down to $130 million from $406 million the previous year. (That’s for continuing operations.) Advertising revenues rose 18 percent during 2005, as did overall revenue but operating income increased by only 4 percent.
MKTW: During the conference call, CEO Tom Freston said Paramount “won’t lead the charge” to close the theater-DVD window. ‘From a profitability standpoint, the studios have been a great beneficiary from this sequential release of product … We don’t see any reason to change that. It is fair to say windows may continue to tighten a bit, and I don’t know if it is an all or nothing thing.” He said he could see narrowing the window between DVD and VOD. Freston said Viacom is in talks with a number of unnamed online portals.
Earnings release (pdf) | Webcast (archived)
Updated: FT: Viacom is in talks to supply content to internet portals in an effort to more than triple digital revenues over the next three years (from $150 million to $500 million). Viacom CEO Tom Freston sketched out an arrangement in which Viacom would supply video and other content in exchange for a portion of advertising revenue.
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