Earnings Call: Viacom’s Dauman: About Done With Upfront, Epix Signs Verizon
MTV Networks (NYSE: VIA) is “about done” with the upfront, Viacom CEO Philipe Dauman told analysts on the company’s Q2 earnings call this morning. “Given current conditions, we’re very pleased,” he added. As for those current conditions, domestic ad revenues declined 6 percent in Q2, which may sound tough but is better than the 9 percent drop in Q1.
Dauman also announced the first distribution deal for new joint-venture premium channel Epix: Verizon (NYSE: VZ) FiOS
Dauman elaborated a little during Q&A: “Our agreement with Verizon gives them a lot of flexibility to package Epix in many different ways—linear, VOD, broadband, mobile.” Verizon also can sell a la carte. Epix will work with Verizon on a mobile version for V Cast. Epix was a popular topic as analysts try to get a better sense of how the new enterprise will make money. Dauman stressed the flexibility Epix has in making deals and what he says are lower costs than similar networks: “We really don’t have all that high a hurdle ... it won’t take us long to break even.” (We’ll see how well that flies.)
—More on advertising: Dauman said the company started to see some dollars canceled earlier come back during the scatter sales in the second quarter. He declined to give details on CPMs while the upfront continues: “Out of respect for our ad agency customers, we’ll hold back on specifics.” He said it’s too early to predict Q3 advertising trend. The inventory range runs from 45 percent to 65 percent and as high as 75 percent.
—From the 10-Q: During Q209, as a result of layoffs and restructuring, it has severance charges of $16 million in the Media Networks segment and $17 million in the Filmed Entertainment segment. Also in Q2, it has restructuring liabilities for $23 million of Media Networks and $9 million of Filmed Entertainment obligations related to the 2008 initiatives.
Posted In: Advertising, Upfronts, Money, Earnings, Companies, Viacom, epix, philippe dauman

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