Viacom Looks to DVD for Growth12 Jan, 2005 By: Holly J. Wagner
DVD is a key element of Sumner Redstone's plan to drive up the value of Viacom stock, he told investment analysts.
“Content is king, and we are the kings of content,” he said.
“Our library is the most underutilized library there is. Of over a thousand movie titles, we only utilize less than half for DVD. We have 2,900 television series and movies; we've only used 5 percent,” Redstone told analysts at the 15th Annual Global Entertainment, Media and Telecommmunications Conference. “So you can see us aggressive in the DVD market and taking in a lot of money for Viacom and hopefully for you guys.”
In addition to DVD, Redstone said the proliferation of delivery platforms will play right into Viacom's hands. He said former Viacom board member Ivan Steinberg, who left because of potential conflicts of interest, is planning Internet delivery of Viacom content.
“We will be properly represented on the Internet as we have not in recent years, and our brands will be as powerful there as they are in cable and satellite. “Ivan said that he will be delivering Nickelodeon and MTV on telephone wires, and paying us for it. That will be a bonanza for us.”