Viacom (NYSE:VIA) competes with other media conglomerates like Disney (NYSE:DIS), News Corp (NASDAQ:NWS), CBS (NYSE:CBS) and Time Warner (NYSE:TWX) in media and entertainment business. The company is heavily dependent on TV channels for its value. Below we take a quick look at the most valuable channels for Viacom.
Our price estimate for Viacom stands at $58.36, which is in line with market price
1) Nickelodeon – represents 16% of the company’s stock value
Nickelodeon is the highest rated kids channel in the United States. It offers immensely popular shows and has a very high household penetration rate of about 98%. The channel earns revenues by collecting subscription fee from pay-TV service providers, besides advertising revenues.
2) MTV – represents 12% of the company’s stock value
MTV pioneered the airing of music videos by VJs and has revolutionized the music industry. However it has moved away from being a pure music destination and now also focuses on reality television and pop culture. Like Nickelodeon, MTV also earns revenues both from advertising and charging subscription fee from carriers.
3) Comedy Central – represents 7% of the company’s stock value
This is, as the name suggests, the comedy-focused channel of Viacom. It focuses more on more reality and hosts compared to TBS, which has more of sitcom variety of shows. The business model is similar to that of Nickelodeon and MTV.
4) VH1 – represents 7% of the company’s stock value
VH1 is a music focused channel offering a variety of music genres. The channel makes money via both subscription fees and advertising.
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