Viacom’s Q3 profit plummeted 37% from the same period a year ago; net income fell from $641 million in the third quarter of 2007 to $401 million.Domestic ad sales fell 3%, compounding the effects of a ratings slide taking place at MTV, according to Adweek. Global sales fell 2% to $1.16 billion. Revenues rose 4% to $3.4 billion. The results were in line with what analysts expected (via AP).
MTV fell out of the top 20 in the third quarter following a decline of 18% from the year-earlier period, to an average of 865,000 prime time viewers. Chief executive Philippe Dauman says the company is working to reverse the decline at MTV, which is one of the company’s core cable channels.
The network, Dauman pointed out, is still No. 1 among its target audience of viewers 12-24 - but he says MATV has trouble convincing people to watch its programs more than once, writes MarketWatch. To resolve the problem, MTV is increasing the amount of original programming on the network. MTV-branded channels will also be called into duty to promote some of MTV’s more successful shows.
VH1 also saw a decline of viewers in the quarter.
The company announced on Oct. 30 a reorganization within the ad sales group, with ad sales leaders now reporting directly to the heads of each brand group. MTAVN ad sales president Hank Close will be leaving the company at the end of the year, coinciding with the expiration of his current contract, Mediaweek writes.
