Comedy Central Honored with Three Primetime Emmy
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11.3.08 THIRD QUARTER PARAMOUNT: THE CURIOUS CASE NICKELODEON: PARAMOUNT HOME ENTERTAINMENT: OF BENJAMIN BUTTON GO, DIEGO! GO! – IT’S A BUG’S WORLD INDIANA JONES AND IRON MAN A NOTE FROM COMEDY CENTRAL HONORED WITH THREE PHILIPPE DAUMAN PRIMETIME EMMY AWARDS Comedy Central earned three Emmy Awards in Letterman’s standing record of five wins in a the 2007-2008 Primetime Emmy competition, with row. The Colbert Report with Stephen Colbert ten-time Emmy-winner The Daily Show with Jon received its first-ever Emmy Award: Stewart winning this year’s Outstanding Variety, Outstanding Writing For A Variety, Music Or Music Or Comedy Series award. With its sixth Comedy Program. Already a two-time Emmy- consecutive Primetime Emmy win in the category, winner (with eight nominations), South Park During the third quarter, Viacom, like every the Daily Show breaks the Late Show with David received its third Emmy for Outstanding company, had to adjust to the realities of a serious Animated Program, this time for Programming economic downturn. There was a general pullback TABLE OF CONTENTS One Hour or More, for the "Imaginationland" in spending by marketers as they responded to Comedy Central Honored with Three trilogy. lower consumer spending. Primetime Emmy Awards P 1 MTV and The Beatles Come Together for Deal P 1 MTV AND THE BEATLES Throughout these uncertain times, we have and Marvel and Paramount to Join Forces Globally P 2 COME TOGETHER FOR will continue to take all appropriate steps to American Gangster Returns for Bold 3rd Season P 2 UNPRECEDENTED DEAL prepare for whatever challenges lie ahead. The MTVN Acquires Social Project, Its Partner in Flux P 2 prudent management of our balance sheet over Nickelodeon and Royal Caribbean The Beatles' extraordinary music and Cruising for Success P 3 the past two years has positioned us very well for phenomenal legacy is set to rock across the Viacom CEO Addresses MIPCOM P 3 both the short and long term. We also continue to universe in the form of a video game through an ColbertNation.com: The Hub for All Things Colbert P 3 generate significant free cash flow, which will exclusive partnership between Apple Corps Backchannel: The Party Game for the 21st Century P 3 accelerate in the fourth quarter. Ltd., Harmonix and MTV Games. This TV Land Launches ‘PRIME’ P 3 partnership marks the first time that Beatles 2008 MTV Video Music Awards Deliver P 4 During the third quarter, our Media Networks music is available in an interactive video game BET Gets Out the Vote P 4 segment again delivered solid double-digit gains in format. Nick Kids Pick the President P 4 both affiliate and ancillary revenues. Demand for Paramount’s New Slate Strategy P 4 our networks remains strong, which translates into The game was creatively conceived with input My Big Redneck Wedding Back for a a stable, high margin revenue stream that we Second Shameless Season P 4 from Sir Paul McCartney and Ringo Starr, along believe will continue on its double-digit growth ‘Colors’ Fly in India P 4 with Yoko Ono Lennon and Olivia Harrison, and trajectory for years. The headline on our ancillary Ratings Highlights P 5 will be an unprecedented, experiential business continues to be the phenomenal success Statistical Information P 7 progression through and celebration of the of Rock Band, with more than 7 million units music and artistry of The Beatles. shipped in 13 countries. (continued P 2) Viacom . PULSE 11.3.08 P 1 A NOTE FROM P. DAUMAN AMERICAN GANGSTER RETURNS FOR BOLD THIRD (continued from P 1) SEASON Clearly, with respect to our advertising business, we had challenges in the third quarter, and we are BET's critically acclaimed docu-drama American adapting to a changing market. We are taking Gangster returned for another compelling season steps to strengthen our ad sales organization by in October. Narrated by Ving Rhames, the new more closely aligning it with our brands, and fully season probes the lives and crimes of America's integrating ad sales leadership into the senior most dangerous criminals, including "Monster" management teams. This will enhance the linkage Kody, Larry Davis and Mutulu Shakur, and between our programming and advertising explores notables like J. Edgar Hoover and strategies and help us to deliver even more value COINTELPRO, among countless others. to our marketing partners. MARVEL AND PARAMOUNT TO JOIN FORCES GLOBALLY Since its debut in 2006, American Gangster has Paramount has also taken significant steps to found a dedicated following among audiences as refine and implement a long-term creative and Building on the performance of Iron Man, which well as critics. Drawing the highest viewer ratings operational strategy that will yield great dividends grossed $580 million worldwide, Paramount and of any series debut on the network, American in the years to come. We have been able to Marvel have agreed to continue their highly Gangster has received significant recognition for rationalize our film slate going forward, which will successful partnership on Marvel’s next five self- its overall quality and depth of purpose, allow the studio to compete more efficiently and produced feature films. Paramount will provide culminating in its recent nomination for a 2007 effectively. In fact, Paramount is probably in the theatrical distribution worldwide, including foreign NAACP Image Award. best position it has been in for a number of years. territories previously serviced through local It has built a robust, dynamic, film pipeline, has distribution entities. cultivated strong partnerships with some of the greatest creative talent in the business, and is The highly anticipated live action releases include rapidly building a leadership position in the digital Iron Man 2, Thor, The First Avenger: Captain space. America, and The Avengers. The distribution agreement also includes Iron Man 3. We have every reason to remain confident about “Paramount is an excellent partner and an Viacom’s exciting future. Our business is centered outstanding global distributor," said David Maisel, on some of the most powerful entertainment brands in the world with leadership positions in Chairman of Marvel Studios. "Through our growing markets. We have a vibrant film studio experience on Iron Man, Paramount has with creative, strategic and financial momentum. demonstrated a passion and ability to release We have an unparalleled array of cable network Marvel properties theatrically, allowing us to focus brands with multiple revenue sources, including on making great movies for the largest audience advertising sales, subscription and affiliate fees, possible." consumer products and recreation. We have a tiger by the tail in Rock Band and our growing MTVN ACQUIRES SOCIAL PROJECT, ITS PARTNER IN FLUX games business. And we have a significant international presence across our portfolio that MTV Networks acquired Social Project, Inc., its partner in building the Flux social media platform. Flux continues to grow. Certainly, the economic allows users to share and interact with content across a growing network of more than 1,000 environment may present additional challenges. entertainment, pop culture and music web sites, and has more than 7.5 million registered users. However, due to the efforts across our company to Previously, MTVN held a minority stake in Social Project. build a strong, diversified and resilient business, we believe that we will be well-positioned both in The acquisition marks an important step in the evolution of MTVN’s vertical entertainment strategy, the near term and as the global economy regains accelerating the introduction of Flux across the MTVN online portfolio and further connecting web sites its footing over time. from inside and outside the MTVN portfolio through social media tools. Philippe Dauman is President and Chief Executive Officer of Viacom Inc. and serves on the company’s Board of Directors. Viacom . PULSE 11.3.08 P 2 COLBERTNATION.COM: THE VIACOM CEO ADDRESSES HUB FOR ALL THINGS MIPCOM COLBERT Viacom President and CEO Philippe Dauman In true “maverick” style, Colbert Nation and delivered the keynote at the MIPCOM conference Comedycentral.com have embraced change and in Cannes on October 13. In his address to the delivered the new ColbertNation.com, the ultimate assembled representatives of the global media online destination and authority for The Colbert industry, Mr. Dauman spoke about the continuing Report fans. The new site reinvents the way in importance of great content, and maintaining which fans of The Colbert Report can learn about connections to audiences across all platforms. the show, watch video and become Colbert Nation "heroes" by participating in the online community. He said: “Looking ahead, whatever changes the marketplace may bring, the primacy of content will NICKELODEON AND ROYAL The ColbertNation.com site features video clips remain. The key barometer of success – CARIBBEAN CRUISING FOR from every episode dating back to 2005, the year regardless of platform – will always be what SUCCESS that The Colbert Report launched, giving viewers a consumers are watching and clicking on, not how full screen video experience and a compelling look consumers are watching or clicking. Nickelodeon and Royal Caribbean International back at the meteoric rise of South Carolina’s “Technology is a fundamental part of our business announced plans to expand their partnership with favorite son, Presidential candidate Stephen – but it always has been. It represents an two brand-new, exotic cruise adventures in Colbert. extraordinary opportunity for media companies. summer 2009. Based on the success of the first- But it can never take the place of the brands and ever, sold out Nickelodeon Family Cruise with great content that define not only Viacom, but Royal Caribbean, the two companies are teaming many of our competitors. Understanding the role up to offer families new cruises from each U.S.