[ Search for News ]

AUTHORLINK NEWS ARCHIVES

Viacom Reports

Across-the-Board

First Quarter Growth

NEW YORK/ LATE MAY '97--Viacom Inc. (Amex: VIA and VIAB), reported first quarter, 1997 revenue growth in every segment, including double-digit gains at MTV Networks, Blockbuster Video and Paramount's motion picture and television operations.

Quarterly revenues rose to $2.9 billion, compared to $2.6 billion for the first quarter of 1996. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $392 million and operating income was $174 million for the first three months of 1997. In the first quarter of 1996, Viacom posted EBITDA of $448 million and an operating income of $256 million.

Publishing (Education, Consumer, Business and Professional, Reference and International Groups), which traditionally records most of its revenues and earnings in the second half of the year, posted a 2% increase in revenues to $399 million, driven by strong International sales particularly in Asia and Latin America. Publishing losses from operations before depreciation and amortization increased to $19 million from $9 million for the first quarter of 1996 due principally to planned expense increases to support greater opportunities in the Higher Education, Elementary and High School markets.

The Consumer Group's best selling titles in the first quarter included consecutive Oprah Winfrey Book Club picks -- Stones from the River (Ursala Hegi) and She's Come Undone (Wally Lamb) -- as well as The Wedding (Julie Garwood), and Angela's Ashes (Frank McCourt), which received the 1997 Pulitzer Prize for biography.

Networks and Broadcasting revenues increased 11% to $577 million and EBITDA increased 17% to $160 million. Entertainment revenues increased 14% to $1.0 billion, while EBITDA decreased 28% to $127 million.

Sumner M. Redstone, Chairman and Chief Executive Officer of Viacom, said, "The underlying strength of all of Viacom's businesses was demonstrated by the revenue growth in every segment of the Company. Viacom's 1997 first quarter results were led by the strong performance of our Networks and Broadcasting segment, particularly MTV Networks, which had revenue and EBITDA increases of 15% and 23%, respectively. Our Entertainment segment also made substantial contributions in the period, while our seasonally-driven Publishing and our Video and Music/Parks segments remain on track for improved performance in the second half of 1997."

Viacom Inc. is one of the world's largest entertainment and publishing companies and a leading force in nearly every segment of the international media marketplace. The operations of Viacom include Blockbuster video and music, MTV Networks, Paramount Parks, Paramount Pictures, Paramount Television, Showtime Networks, Simon & Schuster, radio and television stations, and movie screens in 12 countries. Viacom also has a majority interest in Spelling Entertainment Group, as well as a half-interest in Comedy Central; UPN; and USA Networks, including the Sci-Fi Channel. National Amusements, Inc. a closely held corporation which operates approximately 1,100 movie screens in the US, the UK and South America, is the parent company of Viacom. More information about Viacom is available at the Company's Web site located at http://www.viacom.com.

Barnes & Noble,

Amazon.com

Battle Intensifies

NEW YORK/ LATE MAY '97--The May 12 announcement that Barnes & Noble, Inc. (NYSE:BKS) has partnered with Hewlett-Packard, Microsoft and Firefly Network, Inc. to launch its preeminent on-line bookstore, BarnesandNoble.com, comes at a not-so-accidental time. Amazon.com, Inc., a prime target for elimination by B&N, was preparing to go public the following week, and could not talk under an Securities and Exchange Commission gag prohibiting publicity before a stock offering.

The fact that Barnes & Noble, feared by small booksellers everywhere, is about to battle with a company nearly 80 times smaller, has been called by some, "not a Noble aim."

Barnes & Noble COO, Steve Riggio, has stated that his company doesn't view this as a "Barnes & Noble vs. Amazon situation." There are 500 bookstores on line. Books Stacks Unlimited (www.books.com), and Borders (www.borders.com) are viewed as formidable on-line rivals, but Amazon.com is considered the most likely target for eradication. In addition to BarnesandNoble.com, Barnes & Noble also has a site on American On-line found by searching for the company name.

Amazon.com, the on-line bookstore that blazed a trail from zero to 340,000 registered on-line customers in less than two years, has said in earlier statements that they can champion the Barnes & Noble assault based on a broader selection of titles (2.5 million), price discounts of up to 40 percent, two-day order fulfillment, and full search capabilities.

The Barnes & Noble site will offer more than 400,000 titles, next-day delivery, and deep discounts--30% off all hardcovers and 20 percent off paperbacks.

Barnes & Noble will use Hewlett-Packard servers to power the new web site, and Microsoft will supply the software technology to enable multiple server transactions. Firefly technology will provide customers with what Barnes & Noble has called a "personalized experience on-line." The Firefly tools will enable customers to receive personalized book recommendations and set up individual customer preferences.

Amazon.com Inc. revenues are $30.9 million (through March 31), compared to Barnes & Noble's $2.45 billion (through February 1).

Barnes & Noble, Inc. is the world's largest bookseller, with 439 stores national wide, and 569 stores in shopping malls.

Simon & Schuster

Launches Internet

Educational Site

NEW YORK/ LATE MAY '97--Simon & Schuster, world's leading publisher of educational multimedia software and textbooks, has launched Edscape, a comprehensive Internet resource for educators that features interactive curriculum content for K- 12 students, as well as on-line professional development for teachers.

Edscape (www.edscape.com) aligns a broad range of interactive web content with national education standards and off-line educational content produced by Simon & Schuster's Education Group.

Edscape combines the content, technology and market equity of established Simon & Schuster brands including Computer Curriculum Corporation, Educational Management Group (EMG), Modern Curriculum, Prentice Hall, and Silver Burdett Ginn to create powerful on-line instruction for K-12 educators. Textbooks, software and satellite-delivered video can be used in combination with the on-line content, providing an easy way for educators to connect the Internet to meaningful classroom instruction.

"With grassroots community efforts, NetDays nationwide and state-level technology plans, the demand to hook schools up to the Internet is intensifying," said Martin Kenney, president of Simon & Schuster's Education Technology Group.

"When teachers are linked to the Internet and ask 'Now what?' we want to be there with valuable, curriculum-based content that makes the Internet a powerful and manageable tool for the classroom."

The network's curriculum content is provided through the Simon & Schuster operating units' individual web sites.

Edscape's fee-based project areas will be promoted through existing direct sales forces, individual teacher registration via Edscape or individual operating unit web sites, and marketing partnerships with leading technology and communication companies such as MCI, Bell South, US Robotics and Microsoft.

Simon & Schuster also will offer promotional trial subscriptions through bundled product offerings. Subscription pricing, with access to all Edscape content, is $65 per year for an individual teacher or $1,595 for a school site license.

Simon & Schuster, the world's largest educational publisher, is the publishing operation of Viacom Inc. Its educational publishing imprints include Allyn and Bacon, Computer Curriculum Corporation, Educational Management Group, Globe Fearon, Modern Curriculum, Modern Curriculum Press, Prentice Hall, Silver Burdett Ginn and Simon & Schuster Custom Publishing.

Other S&S imprints and divisions include Simon & Schuster, Pocket Books, The Free Press, Scribner, Jossey-Bass, The New York Institute of Finance, Prentice Hall Direct, Bureau of Business Practice, Simon & Schuster Children's Publishing and Macmillan Publishing USA.

Paramount TV

Signs Emmy-Winning

Producers/Writers

HOLLYWOOD, CA/ LATE MAY '97-- Two-time Emmy Award-winning producers/writers Chuck Ranberg and Anne Flett-Giordano have signed a three- year contract to develop and produce a comedy series for the Network Television Division of the Paramount Television Group. Ranberg and Flett-Giordano won the Emmy as supervising producers and writers for the popular television series, FRASIER.

In making the announcement, Division President Garry Hart said, "Chuck and Anne have been a key element in FRASIER'S success over the last four years and we're thrilled to continue and broaden our relationship with them."

Ranberg and Flett-Giordano joined FRASIER in 1993, during the production of the pilot as writing consultants and soon thereafter became full-time staff writers. The pair won their first Emmy Award for writing in 1995 for the critically-acclaimed episode entitled "An Affair To Forget" and won their second Emmy Award (shared with the FRASIER writing staff) in 1996 for the Kelsey Grammer-directed episode entitled "Moon Dance." Also in 1996, the duo was promoted to supervising producers.

Ranberg and Flett-Giordano met at the University of California at Santa Cruz where they collaborated on a screenplay for their senior thesis. In l985 they landed their first job as story editors on the hit CBS comedy series "Kate & Allie" and continued on as producers until 1989. From 1989 to 1993 they served in various writing capacities on comedy series and pilots including the comedies "Baghdad Cafe" for CBS and NBC's "Working It Out," which starred Jane Curtin.

The Paramount Television Group is part of the entertainment operations of Viacom Inc.

Cisneros TV Group

Appoints New Head

For International Sales

MIAMI BEACH, FL/ LATE MAY '97-- Cisneros Television Group (CTG), a member of the Cisneros Group of Companies, has named Emilio Rubio as Senior Vice President of International Sales. The announcement was made by Carlos Cisneros, Chairman and Chief Executive Officer of Cisneros Television Group.

As Senior Vice President of International Sales, Rubio will oversee all aspects of channel distribution in Latin America. Currently, CTG channels are carried exclusively on the Galaxy Latin America (GLA) direct-to-home satellite system. Rubio will spearhead the expansion and diversification of CTG's distribution network to include new, primarily cable, outlets.

Rubio comes to the Cisneros Television Group from HBO Latin America Group, where he was Senior Vice President of Sales and Marketing.

Cisneros Television Group, which includes some of the Cisneros Group of Companies' television operations, is focused on the creation of new broadcasting channels and entertainment options in Latin America and throughout the world. Group revenues for 1996 totaled more than $3.2 billion.

Random House,

Great Source

Plan Reading Series

NEW YORK, NY/LATE MAY '97--Great Source Education (Wilmington, MA) K-12 supplemental publisher, will develop, publish and market a new elementary reading series in conjunction with Random House. in The agreement signals a move by Random House to join the growing supplemental market.

The new series, titled Next Steps, will include 30 books developed for grades 2- 4 based on Random House's popular Stepping Stone children's book series. Great Source will develop the teacher guides and market the series to elementary teachers, while Random House will provide content from titles, such as the Magic Tree House and Night of the Ninjas. The series is designed to bridge the gap between emergent reader books and more challenging chapter books. The two companies will equally share revenues series. Great Source is a unit of Houghton Mifflin.

Belo Broadcast

Names New

Cable Director

DALLAS, TX/ LATE MAY '97-- Donald F. "Skip" Cass, Jr. has been named director/Cable News Operations for the Broadcast Division of the A. H. Belo Corporation (NYSE: BLC). Cass replaces Michael D. Grant, who has been appointed vice president and general manager of Belo's KGW-TV in Portland, Oregon.

Cass currently serves as manager/Finance and Administration of Belo's Broadcast Division. Prior to assuming that role, from 1993 until 1996, Cass served as director of operations at Newswatch Channel 15, a cable news joint venture between Belo's WWL-TV in New Orleans and Cox Cable.

R. Paul Fry, vice president/Cable and Program Development of Belo's Broadcast Division, made the announcement.

A. H. Belo Corporation is a leading television broadcasting and newspaper publishing company that owns and operates 16 network-affiliated television stations; six daily newspapers; three local or regional cable news channels; and Belo Productions, Inc.. Belo also manages four television stations through local marketing agreements, is the managing general partner of the Television Food Network and holds a controlling interest in America's Health Network. Belo's principal newspaper holdings include The Dallas Morning News (http://www.dallasnews.com) and the Providence Journal-Bulletin (http://www.projo.com).

New Country Moves

To Nashville,

Hires New Editor

PETERBOROUGH, NH, MAY '97-- Connell Communications, Inc., publisher of New Country magazine has hired veteran music journalist Bob Cannon as editor in chief, and has moved its editorial offices to Nashville, TN from Peterborough, New Hampshire.

Cannon joins New Country after having occupied the same post for a national music magazine. Earlier, he spent four years as a reporter and writer for Entertainment Weekly. Cannon replaces departing editor in chief David Sokol.

Publisher Ellen A. Holmes said the newly-completed move to larger offices in Nashville was just completed, provided a perfect opportunity to expand the magazine's editorial presence in town.

"Bob Cannon's knowledge of the music business, his strong writing and editorial skills, his understanding of New Country's unique audio component and his breadth of knowledge of pop culture and the entertainment business is a great addition to New Country's award-winning staff," Ms. Holmes said.

New Country's Nashville office and 25-person Nashville staff is located in the heart of Music Row at 1207 17th Avenue South, Suite 202.