One of the company’s most vigorous critics, Bernstein Research’s Todd Juenger, thinks they will — or at least should. He downgraded his rating for Viacom this morning to “underperform” from “market perform” with a target price of $50 a share, below its close yesterday at $56.22. (Viacom opened this morning -2.5%.) He predicts that “MTV ratings will be down significantly” in the current fiscal year after falling 30% in the quarter that ended in September. Part of the problem is that MTV and other networks “have been starved as Viacom has funneled the majority of development dollars” into Nickelodeon — which was hit by a shocking ratings drop that began late last year. (Nick’s audience in the latest quarter was -27% vs the same period in 2011.) That’s significant because MTV’s performance could suffer later this year when the network’s hit Jersey Shore completes its final season — which follows the conclusion of another success, Teen Mom. “Looking at MTV’s 2012-13 programming lineup, it’s hard to believe there’s a high probability that any of these shows (on their own, or collectively) will offset the loss of Jersey Shore and Teen Mom 2,” Juenger says. “Returning shows like Awkward, Ridiculousness, and Teen Wolf have definitely not grabbed pop culture attention.” That could knock the wind out of MTV, which accounts for 18% of the ad sales at Viacom’s networks. Although Nickelodeon only has a few competitors, the analyst says that advertisers wanting to reach teens have “plenty of alternatives to MTV.”
Related: Hulu Seals Carriage Deal With Viacom, Adds Nickelodeon To Offerings
The downgrade by the prominent analyst hits as investors have begun to warm to Viacom, believing that it’s a bargain as Nickelodeon recovers from its problems. The share price is hitting record highs following a more than 20% pop since the beginning of August. That’s been fueled in part by promising ratings for the newly relaunched Teenage Mutant Ninja Turtles, which CEO Philippe Dauman considers key to the network’s turnaround.
But Juenger says that Nickelodeon isn’t out of the woods yet. He notes that Turtles is “just one show” — and a licensed one, so it “doesn’t provide evidence their internal development has developed any winners yet.” And even if ratings improve, he says, advertisers may be slow to respond.

MTV has no idea what it is doing, there is no leadership vision there for either the creative or the brand. And Nick has not had a home grown hit in more than a decade. Emperor with no clothes, thy name is Viacom.
Not only has Nickelodeon not had a home-grown hit in over a decade, their reaction to a 30% fall in the ratings has been to double down on the problematic material which caused the ratings shortfall in the first place. Picking up 4 pilots from Butch Hartmann? Great way to go back to the poisoned well that killed your ratings in the first place. Spending $60 million to buy 30-year-old Ninja Turtles? We’ll see. It was a miracle that a show so insipid worked the first time, maybe lightning will strike twice, but I wouldn’t want to bet on it — kids don’t really like the idea of watching their parents’ television shows. Meanwhile, they just pushed out Brown Johnson, the woman who developed Dora the Explorer and essentially singlehandedly created Nick Jr. even though she wasn’t at fault for Nick’s live action and animation development when they took their 30% ratings hit — that’s like firing Hilary Clinton for Obama’s debate performances. More indicative of their problems is the fact that they’ve just hired the 8th new animation development chief in the last 10 years… but the real problems aren’t at the bottom and don’t lie at the feet of creators of shows, but instead at the very top. Everyone knows that the real problem at Nickelodeon is CEO Cyma Zharghami — or, at least, everyone but Philippe Dauman. If this was a real network, the CEO would have been the FIRST person to get swapped out, not the last, but Viacom isn’t run like a real network, it’s run like a secretive private club where loyalty is rewarded over doing a good job, where the 3 guys in charge give themselves $50m yearly bonuses while they simultaneously slash jobs and budgets on their shows and the networks under their control hemorrhage creative executives to Disney and Cartoon Network… and then they sit around and try to figure out what’s wrong and why their ratings are down 30%. Hmmm… I wonder.
And yes, yes I do work there.
I found out Robot and Monster existed way after any show on The Hub. That’s not good at all.
MTV will have more breakout reality franchises–they are uniquely positioned to find freaks and concepts just as they’re emerging. But what they really need is their “Daily Show”– some kind of nightly interview/lifestyle/comedy show that is regular, habitual viewing, 4-5 nights a week and that people talk about and trade videos of the next day. Maybe the recently announced “Nikki & Sara” can grow into this but MTV has always had a low-cost, in-house approach to programming that has yielded breakout hits. And they have better development execs than most of the broadcast nets!
…said an MTV development exec.
The $60mm acquisition of TMNT garnered Nick one day of ratings bump, following Saturday ratings back down, no bump. it’s time for a complete overhaul at the highest levels at Nick and MTV. As for Phillippe, it is just crazy at this accountant it running a creative business, proof that Sumner is a confused old man who isn’t in control.
I read an article about MTV that said they reinvent themselves about every 4-6 years so they stay in step with their target demographic.
What ever happened to the new Beavis and Butt-Head? It was MTV’s best show by far and actually gave the channel some much needed cred.
Mike Judge probably isn’t that desperate.
If Teen Mom was still popular, why did they cancel it? I think the fans would like to still like tos eee how the moms and kids were doing. And Im surprised they didnt try to find a new bunch of kids for Jersey Shore and at least try that out..but I guess they felt lightning in the bottle wouldnt happen twice…but I could see Jersey Shore – The Next Generation…..or maybe go to another beach town – either on the West Coast or something like Fire Island (actually Logo should do that) ; or Rehoboth or somewhere…Also the MTV Canada show 1girl 5 guys is fun to watch on Logo latenights..Maybe do a straight or straight/gay/bi version of the show with young MTV gen people.
Viacom would do itself a favor if it fired EVERYBODY that it has right now and got back down to business. How in the hell do you have a channel called MTV, yet there is hardly any music on the channel? Instead you get a bunch of social misfits, addicts, and attention junkies on these so-called ‘reality’ t.v. shows. I have to watch Fuse if I want to see any videos anymore. How does that happen? Nick has been a mess for years now and they have no one to blame but themselves. My daughter will watch anything but Nick. She’ll watch one of the other Nick channels just to see the older shows that she did like. Bottom line is they suck.