It’s deja vu all over again at MTV.
New Viacom CEO Bob Bakish told Wall Street that the network is going to dump dramas and get back to its original strategy of music and reality shows, while planning more live events and movie tie-ins.
“MTV embarked on a heavy scripted strategy versus MTV internationally and it, ultimately, didn’t really work,” Bakish told analysts on a Thurday conference call.
“Music and live is going to be an element of our strategy.”
Wall Street applauded Bakish’s no-drama approach, with Viacom’s class-B common shares up 4.9 percent at $44.11 in late-morning trades Thursday.
MTV is currently airing a two-hour block of “Friends” to win youngsters to its primetime schedule. “It’s a bridge strategy” until the network can launch new shows, Bakish explained.
MTV will be part of the so-called “flagship six,” or top networks singled out for increased investment. The other five will be BET, Comedy Central, Nickelodeon, Nick Jr. and Paramount Network.
Viacom’s other cable networks — ones deemed not to have global appeal — will become support networks. They include the likes of VH1, CMT, Logo and TV Land, Bakish said on the call. Spike is to be rebranded as Paramount Networks, which already exists as a global TV brand.
The top executive, installed in December after a year of management turmoil, said he will host a Facebook Live session for staff to describe his vision for Viacom in detail.
Bakish, formerly the international chief at the company, which includes the Paramount Pictures studio and Channel 5 in the UK, has clearly been busy in his first two months on the job.
With key cable distributors rankled over Viacom’s inclusion in over-the-top bundles and rumbling about dumping the cable programmer, Bakish stressed the importance of working with distributors in new ways.
“There is a need to emphasize partnerships more than we ever have, rather than a zero-sum economic negotiation,” Bakish said of distribution relationships.
He suggested Viacom could leverage data and product expertise to help operators grow their businesses.
Bakish also appeared to give some ground to pay-TV partners who are upset about online TV bundles which have more flexibility to choose which networks they want to carry.
“We’re being highly selective in agreements with over-the-top providers confining them to library content,” he said.
While not naming anyone, he said the firm is set to pull back on subscription video deals with the likes of Netflix and Amazon.
“We want to support virtual MVPDs [digital programming suppliers] and embrace their role as catalysts for innovation,” Bakish said.
The executive said the firm would be part of new, upcoming “entertainment-only packs” offered by pay-TV distributors.
Key new initiatives:
– Bakish will focus on keeping and growing new talent. At Comedy Central, 10 new shows are on the way, plus a new plan to be part of the comedy festival circuit.
– Film brands will move to TV and TV brands will become movies. The company said each of its flagship six networks would suggest one to two movies a year. Nickelodeon and Paramount are to work on four movies through 2020.
– Bakish said there is a strategy of “de-risking” Paramount by giving up a 25 percent stake in its future film slate to two Chinese backers, Shanghai Film Group and Hua Hua Media Group. The two firms paid $1 billion as part of a three-year co-financing arrangement.
Meanwhile, investors breathed a huge sigh of relief that someone finally has a working turnaround plan. Viacom had been poised to merge with CBS, and had heard turnaround plans from both its former CEOs, Philippe Dauman and Tom Dooley, over the past 12 months.
Chief Financial Officer Wade Davis told investors to expect a strong second half of the year.
In the fiscal first quarter, revenues rose 5 percent to $3.3 billion thanks to theatrical revenue and growth in domestic affiliate revenue, $140 million more than forecasts. Earnings per share of $1.04 beat Street expectations by 20 cents.
Operating income was off 16 percent to $706 million, because of restructuring costs related to severance of its top executives.
The firm saw a 3 percent decrease in domestic ad revenue in the December quarter and a 1 percent increase internationally.
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