Published: Sun, February 12, 2017
Economy | By Melissa Porter

Viacom To Rebrand Spike TV As Paramount Network

The company is focusing on six flagship networks and - having moved away from a plan to sell Paramount Pictures - will integrate the Paramount brand deeper into its operations.

Revenue rose 5.39 percent to $3.32 billion.

Now, years after young men began wandering away to other media, Viacom is giving up on the men's network. Viacom also posted adjusted earnings of $1.04 per share, which decreased 12% y-o-y. This improvement in free cash flow was principally due to lower working capital utilization, reflecting the timing of film and programming spend.

Viacom's focus on six core cable brands will invevitably come at the expense of other Viacom-owned networks such as VH1, CMT and TV Land.

The company, under CEO Bob Bakish, will put "the full power of Viacom" behind six flagship brands including BET, Comedy Central, MTV, Nickelodeon, Nick Jr. and Paramount, the company said in its earnings press release.

Media conglomerate Viacom will rebrand its Spike channel to The Paramount Network in early 2018.

The growth was driven by improved theatrical revenues, which shot up 104% to US$192 million, increased domestic and worldwide affiliate revenues (up 2% to US$985 million and 3% to US$159 million, respectively), as well as 20% and 86% ancillary revenue growth for Viacom's Media Networks and Filmed Entertainment groups, respectively.

Revenue gains were attributed to a return to growth in domestic affiliate fees as well as continuing global strength and ancillary revenues.

Viacom's Filmed Entertainment revenues in the fourth quarter were down 24% y-o-y, principally due to a strong 104% y-o-y increase in its theatrical revenues.

The Paramount Network will serve as Viacom's "premier general entertainment brand", featuring original scripted and non-scripted programming alongside third-party programming.

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