CEO Philippe Dauman told the Goldman Sachs Communicopia conference that Viacom will see “high-single-digit” growth in ad sales in the current quarter. That put a scare into investors who anticipated double-digit growth. Viacom’s down about 6.5% in mid-day trading, ahead of the benchmark Standard & Poor’s 500, which is off about 3%. Dauman tried to cast a flattering light on the situation: ”Despite the macroeconomic headlines, the tone of the advertising market remains strong,” he said. Specifically, he says that Viacom has held on to orders made in the upfront market while scatter prices are “in the teens above upfront. … We had a good quarter, and the next quarter looks good.” He also said that he has seen no weakness in many of the most important ad-sales categories for Viacom’s cable networks including auto, toys, and movies. The overseas situation is mixed: “Some (markets) are strong and some are weaker.” Although acknowledging that the market shifts with the economy, as Viacom’s ”new shows kick in, we have positive momentum.”
Dauman also says he’s encouraged by potential opportunities to sell licensed merchandise, especially around characters on Nickelodeon. ”We’ve aligned our consumer products organization with the creative organization and the marketing organization. We’ve recruited new players — many of them came from Disney — for our international” sales operations. Dauman adds that the strategy meshes with Paramount growing effort to release animated films.
At Paramount, Dauman says his goal is to “de-risk the business” to make it more profitable. The company has reduced its slate from as many as 30 films a year to about 15 — with many devoted to “our franchises and brands” including Transformers, Mission: Impossible and Star Trek. ”We’re very disciplined in our greenlighting process,” he says.


Didnt Moonves say just recently that ad revenue was fine?
Yeah, selling garbage to kids, that’s a long-term business model. I love how these people always forget that what made Nickelodeon #1 in cable was a deliberate desire to bury Disney and their perceived greed and desire to only make cartoons that made kids want to buy product. Thus shows like Rugrats, Ren & Stimpy, Hey Arnold, Angry Beavers,SpongeBob SquarePants, etc. were produced because they weren’t focused on selling toys to kids. The quality of those shows propelled Nickelodeon into first place above Disney. Then SpongeBob became an unexpected phenomenon and Viacom got a taste for the easy toy money. Now Nickelodeon wants to BECOME Disney, going so far as to hire these toy-selling-geniuses to cram garbage down kids’ throats. Slow, ossified, greedy; Nickelodeon has become everything they once rebelled against. How long before another player comes along with a kids-first approach and knocks Nick off their pedestal?
Gee – I wonder what this years number will be for PHIL ?
Remember what he got last year:
CEO amassed $84.5 million in stock, salary and other benefits during Viacom’s fiscal year, which ended on Sept. 30. Included in the giant sum is a one-time stock award — $31.7 million