Post by Clouseau on Apr 20, 2008 23:43:24 GMT
www.hollywoodreporter.com/hr/content_display/television/news/e3i6b913c786b0131f95dccc2677c25dccc
Joint venture enters pay TV, VOD space
Viacom, MGM, Lionsgate set to launch service
By Georg Szalai
April 20, 2008
NEW YORK -- The premium TV channel landscape and Sumner Redstone's media empire were hit by an earthquake midday Sunday.
Viacom Inc. and its Paramount Pictures unit, Metro-Goldwyn-Mayer Studios, and Lionsgate have formed a joint venture that will launch a premium TV channel and VOD service in the fall of 2009.
The news could be a sign of internal strife at Redstone's empire, as it will have a major effect on CBS Corp.'s premium channel arm Showtime. It has output deals with Lionsgate, MGM and Paramount that are set to expire and won't be renewed given that the venture will have exclusive pay TV access to its partners' content.
CBS chairman and CEO Leslie Moonves was understood to be briefed on the venture plans Sunday.
Redstone is chairman and controlling shareholder of both Viacom and CBS.
"I have stated from the beginning that Viacom and CBS have the right to pursue their own strategic objectives in the best interest of their individual shareholders," Redstone said in a statement Sunday. "Competition between the two companies hones their skills and their productivity."
Viacom president and CEO Philippe Dauman told The Hollywood Reporter Sunday that the new venture extends Viacom's core content competency, making it a logical extension of its activities. He also said "it's not the objective" of the new venture to hurt or kill off Showtime.
"I wish CBS and Les well," he said. "He's my friend. They are free to pursue their strategy."
Dauman also pointed to the recent launch of CBS Films as another example where the siblings have moved into each other's businesses. "It's not (Moonves') job to create value for Viacom shareholders. And it is not my job to create value for his company."
The studio venture combines new and classic feature film output and original TV series, giving it exclusive access during the pay TV window to such recent and upcoming films as "Iron Man," "Star Trek," "Pink Panther 2," "Cloverfield," "Robocop." The joint venture also covers library hits such as "Dirty Dancing," "Reservoir Dogs," "Crash," "Braveheart," "Forrest Gump," the "Godfather" series and the Rocky and James Bond franchises.
The venture was unveiled Sunday by Dauman, Paramount Pictures chairman and CEO Brad Grey, MGM chairman and CEO Harry Sloan and Lionsgate co-chairman and CEO Jon Feltheimer.
The venture also is expected to name a CEO soon.
Although the companies didn't disclose their ownership stakes in the as-yet-unnamed venture, Viacom is clearly taking the lead role in it. The company will provide "operational support to the venture, including marketing and affiliate services through its MTV Networks division," it said. Given HBO's dominant role in the premium TV space and its other challenges, being able to rely on MTV's pull with cable and satellite TV operators may prove an advantage.
However, it was not clear what innovative approaches to premium TV programming and distribution the new venture may include as the partners in a statement only vaguely spoke of "next generation" opportunities, a possible hint at future online and other digital components.
"This venture has the potential to be a game changer for the industry," Dauman said. "We are building an innovative service that will use traditional and new digital distribution technologies to bring great film and television entertainment directly to the consumer."
Sloan said the partners "share our vision of providing first-run movies and premium-quality original television programming across linear and digital platforms in a new way." He also said the service will offer "flexibility for program distributors as well as consumer options."
Viacom, MGM, Lionsgate set to launch service
By Georg Szalai
April 20, 2008
NEW YORK -- The premium TV channel landscape and Sumner Redstone's media empire were hit by an earthquake midday Sunday.
Viacom Inc. and its Paramount Pictures unit, Metro-Goldwyn-Mayer Studios, and Lionsgate have formed a joint venture that will launch a premium TV channel and VOD service in the fall of 2009.
The news could be a sign of internal strife at Redstone's empire, as it will have a major effect on CBS Corp.'s premium channel arm Showtime. It has output deals with Lionsgate, MGM and Paramount that are set to expire and won't be renewed given that the venture will have exclusive pay TV access to its partners' content.
CBS chairman and CEO Leslie Moonves was understood to be briefed on the venture plans Sunday.
Redstone is chairman and controlling shareholder of both Viacom and CBS.
"I have stated from the beginning that Viacom and CBS have the right to pursue their own strategic objectives in the best interest of their individual shareholders," Redstone said in a statement Sunday. "Competition between the two companies hones their skills and their productivity."
Viacom president and CEO Philippe Dauman told The Hollywood Reporter Sunday that the new venture extends Viacom's core content competency, making it a logical extension of its activities. He also said "it's not the objective" of the new venture to hurt or kill off Showtime.
"I wish CBS and Les well," he said. "He's my friend. They are free to pursue their strategy."
Dauman also pointed to the recent launch of CBS Films as another example where the siblings have moved into each other's businesses. "It's not (Moonves') job to create value for Viacom shareholders. And it is not my job to create value for his company."
The studio venture combines new and classic feature film output and original TV series, giving it exclusive access during the pay TV window to such recent and upcoming films as "Iron Man," "Star Trek," "Pink Panther 2," "Cloverfield," "Robocop." The joint venture also covers library hits such as "Dirty Dancing," "Reservoir Dogs," "Crash," "Braveheart," "Forrest Gump," the "Godfather" series and the Rocky and James Bond franchises.
The venture was unveiled Sunday by Dauman, Paramount Pictures chairman and CEO Brad Grey, MGM chairman and CEO Harry Sloan and Lionsgate co-chairman and CEO Jon Feltheimer.
The venture also is expected to name a CEO soon.
Although the companies didn't disclose their ownership stakes in the as-yet-unnamed venture, Viacom is clearly taking the lead role in it. The company will provide "operational support to the venture, including marketing and affiliate services through its MTV Networks division," it said. Given HBO's dominant role in the premium TV space and its other challenges, being able to rely on MTV's pull with cable and satellite TV operators may prove an advantage.
However, it was not clear what innovative approaches to premium TV programming and distribution the new venture may include as the partners in a statement only vaguely spoke of "next generation" opportunities, a possible hint at future online and other digital components.
"This venture has the potential to be a game changer for the industry," Dauman said. "We are building an innovative service that will use traditional and new digital distribution technologies to bring great film and television entertainment directly to the consumer."
Sloan said the partners "share our vision of providing first-run movies and premium-quality original television programming across linear and digital platforms in a new way." He also said the service will offer "flexibility for program distributors as well as consumer options."