Oligopoly brief: Viacom
Of all the great media giants, Viacom has the most mercurial origin. The company, a major presence in TV, movies, radio, book publishing, and video rental, was shaped by a series of anti-trust moves and a dazzling sequence of leveraged buyouts..
The Viacom company was formed in 1971 when the FCC forced CBS to spin off a number of some of its cable and syndication properties. The company had its biggest hit in the 80's with the MTV cable channel.
In 1987, NAI (National Amusements), an operator of drive-in movie theaters, bought a majority interest in Viacom. NAI was already owned by Sumner Redstone. Redstone began a series of acquisitions. In 1994, the company bought Blockbuster Video, merged with Paramount (which included Simon & Schuster). In 1995, it spun off its cable systems. In 1996, it took a 50% position in the UPN network. In 1999 it bought CBS with its TV and radio interests.
Whether due to FTC rulings or lack of expected profits, the company and its predecessors have discarded properties almost as much as it has picked them up. Viacom spun off cable networks, radio stations, parts of Simon & Schuster, Blockbuster Music stores, and an interest in USA Networks. It also abandoned forays into a retail Viacom Entertainment Store chain and a restaurant chain.
The reach of Viacom is illustrated in the charts below, But its holding company, National Amusements also owns Showcase Cinemas and Multiplex Cinemas with about 1,400 screens across the US, the UK, and Latin America. It also owns Midway Games, a major video game producer, and WMS Industries, a major slot machine manufacturer.
Viacom's quick rise in the 1990s and its current scope are truly amazing. It's either number one or two in almost all the industries it is in, and its rate of expansion has been mind-boggling. It's the classic case of the spin off coming back and buying the company it was spun off of. While the company seems to have an organization almost too baroque to figure out, it keeps the operating units in line by throwing overboard units that do not pull their weight.
| Category |
Subcategory |
Properties |
Notes |
| Television |
Channels |
CBS, BET, CMT (Country Music Channel), Flix, MYV), MTV2, N, Nickolodeon, Nick at Nite, Noggin, Showtime, New TNN, Sundance (part), The Movie Channel, TV Land, UPN, VH1, Game One (50%, France), Comedy Channel (recently bought remaining 50% from Aol-Time-Warner) |
CBS usually #1 network MTV seen in over 25 countries; Nickelodeon in over 15 countries, |
| |
CBS Stations |
In Austin, Baltimore, Boston, Chicago, Dallas, Denver, Detroit, Green Bay, Los Angeles, Miami, Minneapolis, New York City, Philadelphia, Pittsburgh, Salt Lake City, San Francisco |
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UPN Stations |
Atlanta, Boston*, Columbus, Dallas*, Detroit*, Indianapolis, Miami*, New Orleans, Norfolk, Oklahoma City, Philadelphia*, Pittsburgh*, Providence, Sacramento, San Francisco*, Seattle, Tampa, West Palm Beach |
* = Second channel owned in market |
| |
Other stations |
Alexandria (MN), Walker (MN), Escabana (WI), Washington (UT), Los Angeles* |
2003, Viacom bought KCAL-TV, last independent station in LA |
| |
Affiliates |
CBS (around 210), UPN (around 80) |
CBS has one affiliate in Bermuda |
| Film & Television |
Studios |
Paramount Pictures, Paramount Television, Paramount Home Video, CIC Video (part), MTV Productions, Nickelodeon Studios, Spelling Entertainment (part), Republic Entertainment, Wilshire Entertainment, EYEMARK, Big Ticket Enterprises, Worldvision, Hamilton Projects, King World |
|
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Library |
Paramount Film Library |
2,500 films |
| |
Video Rental |
Blockbuster Video, Viacom Entertainment Stores, Blockbuster Music |
Blockbuster = #1 Video chain (over 8,500 stores worldwide) |
| |
Theaters |
Famous Players (Canada, 103 locations, 853 screens); United Cinemas International (joint venture with Universal, 120 theaters, 1,092 screens in 11 countries) |
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Distribution |
United International Pictures (joint venture with Universal), distributes films in over 250 countries |
|
| Amusement Parks |
Paramount Parks |
In CA (2), NC,NV, OH, VA, and Ontario |
|
| Publishing |
Presses and Imprints |
Simon & Schuster, Scribners, Pocket Books, Washington Square Press, Anne Schwartz Books, Archway, Minstrel, Lisa Drew, Fireside, The Free Press, Touchstone, BET Books, MTV Books, Nickelodeon Books, Star Trek |
|
| Radio |
CBS Radio/Infinity Broadcasting |
Atlanta (3 stations), Austin (4), Chicago (6), Cincinnati (4), Cleveland (4), Columbus (3), Denver (3), Detroit (6), Fresno (7), Greensboro (3), Hartford (3), Houston (2), Kansas City (4), Las Vegas (6), Los Angeles (9), Memphis (2), Minneapolis (4), New York (5), Orlando (3), Philadelphia (5), Phoenix (3), Pittsburgh (4), Portland, OR (5), Riverside (4), Rochester (4), Sacramento (6), Saint Louis (3) San Antonio (2), San Diego (2), San Francisco (7), San Jose (2), Seattle (5), Tampa (5), Washington, D.C. (4), West Palm Beach (5) |
#2 radio network; one of top three stations in most major markets |
| |
Radio production |
Westwood One,Metro Networks, Shadow Broadcast Services, SmartRoute Systems |
largest U.S. supplier of traffic, news, sports, and weather, on over 3,000 stations |
| Music |
Publishing |
Famous Music |
100,000 song copyrights |
| New Media |
Principal web sites |
BET.com, CBS.com, CBSNews.com, CBSHealthWatch.com (part), MYV.com, Nickelodeon.com, SonicNET (music site), VH1.com |
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Viacom Interactive Ventures |
Hollywood Media, iWon, MarketWatch (part), Medscape, MovieTickets, SportsLine (part) |
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| Marketing |
Brand Management |
Viacom Consumer Products |
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Key Brands, Franchises |
Star Trek, Jeopardy, Wheel of Fortune, Entertainment Tonight |
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Outdoor Advertising |
TDI Worldwide, Viacom Outdoor Systems, Infinity Outdoor |
#1 billboard company in the U.S. and Europe, 100,000 bulletin, poster, mall, and transit advertising display faces in North America and over a million worldwide. |
2:21:52 PM 
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