The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
competes with other media conglomerates like
in media and entertainment business.
The company is heavily dependent on TV channels for its value. Our price estimate for Viacom stands at $58.36, which is in line with market price.
Viacom's Top Channels
Nickelodeon, which represents 16% of the company's stock value, 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.
See the top forecasts for Nickelodeon
MTV, which represents 12% of the company's stock value, 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 also focuses on reality television and pop culture. Like Nickelodeon, MTV also earns revenues both from advertising and charging subscription fee from carriers.
See the top forecasts for MTV
Representing 7% of the company's stock value, Comedy Central, as the name suggests, is the comedy-focused channel of Viacom. It focuses more on more reality and hosts compared to TBS, which focuses more on sitcom shows. The business model is similar to that of Nickelodeon and MTV.
See the top forecasts for Comedy Central
VH1, representing 7% of the company's stock value, is a music channel offering a variety of music genres. The channel makes money via both subscription fees and advertising. See the top forecasts for VH1
See our full analysis for Viacom's stock
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