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Nickelodeon Scores As Top Basic Cable Network Viacom 02.12.09 FOURTH QUARTER COMEDY CENTRAL WELCOMES DIMITRI MARTIN REVOLUTIONARY ROAD SCORES 3 OSCAR NODS THE COLLEGEHUMOR SHOW COMES TO MTV A NOTE FROM NICKELODEON SCORES AS TOP BASIC CABLE NETWORK PHILIPPE DAUMAN Nickelodeon finished 2008 ranked as cable's #1 only to Nickelodeon with total viewers. rated network in total day for kids 2-11 and for Average 2008 Audience - Kids 2-11 total viewers. It was the 14th consecutive year that (standard day, live+same day) Nick was the #1 network for these demos. The 1,212,000 797,000 602,000 new series True Jackson, VP was Nick's most- watched live-action series premiere ever for kids 6-11, teens 9-14 and total viewers. We all know that 2008 was a difficult year for In addition, Nick at Nite was rated 2008's top total everyone and that these difficulties are persisting Nick Disney Cartoon Network day cable net with adults 18-49, second overall as we begin 2009. Nonetheless, we have made significant progress at Viacom in strengthening our TABLE OF CONTENTS brands, our content, our organization and our On the web, Nickelodeon Kids & Family ranked financial position. #1 in the kids landscape for the quarter for total Nickelodeon #1 Basic Cable Network in 2008 P1 visits at 386 million and total page views at 6 During periods of uncertainty, among the most Viacom Restructures Organization, Costs P1 billion. important attributes are a strong balance sheet and Paramount Leads the Way with Oscar Nominations P2 a strong cash position. We focused on this well VIACOM RESTRUCTURES BET Says “Yes We Will!” P2 before the economic downdraft and will continue to 2008 MTV Europe Music Awards Delivers ORGANIZATION, COSTS do so. We generated substantial free cash in 2008 Multi-Platform Success P2 - a total of $1.75 billion - in a very tough Comedy Central Creates New Live Entertainment On December 4, Viacom implemented Division P3 environment. restructuring plans designed to better align its BET Expands to Africa P3 Equally important, we are managing Viacom to organization and overall cost structure with Jokes.com Relaunch P3 take full advantage of the opportunities that exist evolving economic conditions. These changes Britney: For the Record P3 today and to quickly capitalize on those that will included broad-based staffing reductions The 2008 Scandalist Awards P3 arise in the future. implemented across all divisions of the World AIDS Day P4 Throughout the year, our Media Networks focused Spike TV’s 2008 ‘Video Game Awards’ P4 Company, resulting in a workforce reduction of on the long-term strategy of nurturing our great ‘Olivia’ Comes to Nick P4 approximately 7%, as well as write-downs of brands and finding new and profitable ways to TRL’s Royal Send-Off P4 certain programming and other assets. The extend those brands. Being ubiquitous while Star Trek in IMAX P4 Company also suspended senior-level salary remaining absolutely authentic strengthens the Madagascar: Escape 2 Africa 'Moves It, P4 increases for 2009. These staffing and Moves It' to Russia and Ukraine exceptional connections we have with our compensation actions and write-downs are Ratings Highlights P5 audiences. expected to result in pre-tax savings of about Statistical Information P7 (continued P 2) $200 million in 2009. Viacom . PULSE 02.12.09 P 1 A NOTE FROM P. DAUMAN 2008 MTV EUROPE MUSIC AWARDS DELIVERS MULTI- (continued from P 1) PLATFORM SUCCESS We also generated double-digit revenue growth in affiliate sales in each quarter of 2008, MTV Networks International demonstrated its demonstrating the value that our programming and expertise in delivering unique, exciting and in- our marketing efforts provide to our distribution demand experiences with the unprecedented partners. success of the 2008 MTV Europe Music Awards Our advertising results clearly reflect the broader PARAMOUNT HONORED WITH on digital platforms. In total, there were 4,030,269 downturn in the economy. While certain networks OSCAR NOMINATIONS unique visitors to the Awards' dedicated website at delivered solid growth across platforms, others www.mtvema.com – a 33% increase over the were challenged by the combination of the Coming off of Kate Winslet’s Golden Globe win for previous year. With a focus on creating a site that economy and ratings softness. Overall, we saw Best Dramatic Actress in Revolutionary Road, was more content-rich than in previous years, steady progress in the relatively new C3 ratings, Paramount Pictures scored a total of 23 Oscar mtvema.com offered more video, photography, where our networks collectively ranked #1 among nominations this year for the 2009 Academy artist information, blogs and downloads than any cable competition. Internationally, our organic Awards. In addition to its 13 nominations for The previous MTV Europe Music Awards website. advertising revenues were strong but the impact of Curious Case of Benjamin Button, other Bolstered by Perez Hilton's live report from the red foreign exchange negated much of the growth. nominated films include Marvel’s Iron Man, carpet, the site delivered more than 800,000 live DreamWorks Animation’s Kung Fu Panda and The soft retail environment that took hold in the streams, a 211% increase over 2007. The DreamWorks’Tropic Thunder. Paramount Vantage fourth quarter impacted sales of our consumer mtvema.com website was available in 18 picked up an additional six nominations -- three for products, including Rock Band. However, the languages, covering 24 regions of the globe. Revolutionary Road, two for The Duchess and one franchise has had great success so far, ranking as for Defiance. the #1 game title of 2008 by revenue across all “The success of the MTV Europe Music Awards genres with more than 10 million units shipped website underlines that MTV understands that worldwide since launch. audience demands content-rich multi-platform support and that is what we delivered for this Paramount had another year of strong box office year's MTV Europe Music Awards," commented performance, ranking #1 internationally and #2 Gary Ellis, Vice President, Content & Operations, domestically. The refinement of the studio’s film MTV Networks International. "As well as giving the slate strategy coupled with a robust development audience an opportunity to vote in ten of the pipeline has placed the studio in a very strong Awards' categories, we ensured that the site position. Throughout the year, we also took offered a depth and range of content that fulfilled several steps to reduce Paramount’s cost their appetite for relevant and up-to-date structure and we will take additional steps to information in every region and in a broad improve its overall profitability and to mitigate spectrum of languages." downside risk and capital utilization. While the business world has changed radically BET SAYS “YES WE WILL!” over the last several months, I remain confident On Inauguration Day, Nick Cannon hosted Yes that our decision to move early and prepare We Will! BET’s Inauguration Celebration, a one- ourselves for the downturn will prove to be a hour special that featured live shots from BET's significant advantage for Viacom – both in the Inaugural Ball and took a look back at the election near-term and over time. That discipline, and the significant campaign that led the way to combined with an uninterrupted focus on and investment in new branded content, will position America's first black president. The show also us well as a first choice destination not only for highlighted what African Americans are committed audiences, but for investors as well. to doing to implement the change initiated by President Barack Obama. BET News chronicled the entire historic weekend with extensive on-air Philippe Dauman is President and Chief Executive Officer and online coverage and news specials. of Viacom Inc. and serves on the company’s Board of Directors. Viacom . PULSE 02.12.09 P 2 BET EXPANDS TO AFRICA BET is now available in 11 countries in sub- Saharan Africa, expanding the channel's international reach that already includes the United States, Canada, the Caribbean and the United Kingdom. BET will provide consumers in Africa access to the network's top-rated and critically acclaimed shows, including 106 & Park, College Hill, Keyshia Cole: The Way It Is, Baldwin BRITNEY: FOR THE RECORD Hills, Real Life Divas, The BET Honors, Bobby Jones Gospel and many more. "Africa makes The much anticipated Britney Spears documentary great strategic sense, and we're confident that Britney: For The Record aired on November 30, we'll continue to grow and deliver content to COMEDY CENTRAL CREATES and was the highest rated telecast, excluding viewers across the continent who are eager for the NEW LIVE ENTERTAINMENT sporting events, for the week among viewers 12- programming we offer," said Michael D. DIVISION 34 versus all cable competition. In the 90-minute Armstrong, Senior Vice President and General exclusive documentary film, Britney told her story Manager, BET International. Leveraging its strong brand and deep expertise in exclusively to MTV in an unprecedented three- live stand-up events, COMEDY CENTRAL has month shoot where no topic was off limits. Via established COMEDY CENTRAL Live personal stories and complete access to her Entertainment, a new division that will focus on during her day-to-day life, acclaimed filmmaker expanding the brand’s position in the live comedy Phil Griffin captured an intimate look into the artist industry through stand-up tours, comedy festivals that reveals those closest to her, provides insight and performance DVDs and CDs. Already a force into her music and career and a glimpse into her in the stand-up space, COMEDY CENTRAL Live! hopes and aspirations for the future. stand-up tours have sold over 1.5 million tickets to performances at theaters, colleges and casinos nationwide, generating over $60 million in box office receipts.
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