Viacom Home Entertainment Revenue Down1 May, 2013 By: Chris Tribbey
A 20% year-over-year drop in filmed entertainment revenue — including home entertainment — pushed Paramount parent Viacom’s overall revenue and profit down for the fiscal second quarter of 2013, the company reported May 1.
Viacom reported overall revenue of $3.14 billion for its fiscal second quarter (ended March 31), down 6% from $3.3 billion from the same quarter in 2012. Viacom posted a profit of $478 million, down from $585 million during the same quarter in 2012.
Viacom’s home entertainment revenue for the quarter was down 38% to $256 million, contributing to the company’s 18% drop in profit (theatrical revenue was also down, 15% year over year to $276 million).
Viacom executives noted that during the first three months of this year Paramount Home Media Distribution had fewer top-tier titles to work with (Paranormal Activity 4, Flight and Rise of the Guardians), compared with the first three months of 2012 (Paranormal Activity 3, Puss in Boots, Hugo, Footloose and The Adventures of Tintin).
During a conference call with investors, Viacom president and CEO Philippe Dauman expressed confidence in the upcoming home entertainment releases of G.I. Joe: Retaliation and Hansel and Gretel: Witch Hunters.
Dauman also addressed Viacom’s future relationship with Netflix. In a letter to investors dated April 22, Netflix said it would allow its distribution deal with Viacom for Nickelodeon, BET and MTV content to expire at the end of May, and was “in discussions with [Viacom] about licensing particular shows, but have yet to conclude a deal.”
Dauman said Viacom is still in talks with Netflix regarding licensing content, “some of it on an exclusive basis, some of it on a nonexclusive basis, with a view to maximizing our revenues.”
“We continue to see the digital distribution arena as a growing opportunity and one that will be complementary to what we do,” Dauman said. “… There is increasing competition in the [digital] distribution arena, and we are doing business with several players today. We have content up on Amazon, on Hulu.”