Viacom cashes in on digital gold coin

DaumanViacom Boss Philippe Dauman may be the latest showbiz Boss to fresh paint a rosy picture of how Hollywood is benefitting in the energetic competition for digital content privileges among Netflix, Amazon . com along with other emerging gamers.Viacom reported a large grow in digital revenues in the fiscal third quarter earnings report, launched Friday. Tight on particulars about the business call with Wall Streeters, Dauman and chief operating officer Thomas Dooley asserted the digital gold coin wasn't a 1-time increase however the fruits of accelerating market fueled by interest in content from well-heeled Netcos.Within the earnings are convinced that generally exceeded the Street's anticipation, Viacom drenched a $26 million year-over-year grow in ancillary revenue, rising to $72 million, which the organization stated "primarily reflect(s) greater digital revenues.""It's a lot of money that will be within the next many years,Inch Dooley stated. "And this isn't the only real some of it. It will likely be significant in each and every year and in to the future."Viacom's digital haul echoed the focus on digital certification possibilities stressed a week ago by CBS Corp., another 1 / 2 of Sumner Redstone's empire (Daily Variety, August. 3).Dauman noted the interest in content privileges was speeding up with the U.S. however in Europe and Latin America and, to some lesser extent, Asia. He caught investors' attention by observing the deals Viacom has lately inked offer income "more than 75 %.Inch And you will find more pacts in the future.InchWe're in many discussions at this time,Inch Dauman stated. "To ensure that provides for us the runway to have the ability to state that we expect about this greater pace we set this season to keep growing in high single-numbers, otherwise double-digit rates, each year for that expected future."Overall for that quarter ended June 30, Viacom registered year-over-year gains with revenue climbing 15% to $3.77 billion and internet earnings up 37% to $574 million.A lot of increases originated from a 14% worldwide rise in ad sales for MTV Networks' cablers along with a strong perf home based entertainment from such releases as "True Grit," "Attacking Young Boys: Never Say Never" and "No Strings Attached."Vital Pictures faced tough evaluations towards the year-ago period that placed the releases of "Iron Guy 2" and "Shrek Forever AFter." This summer time, "Transformers: Negative Side from the Moon" is a worldwide B.O. juggernaut but wasn't launched before a week ago of Viacom's fiscal Q3.Dauman attempted to dampen the busyness in recent days concerning the probable finish of their distribution partnership with DreamWorks Animation the coming year.Speak of the large rift between your companies was spurred by Par's announcement recently it would launch its feature animation unit to leverage the need for Nickelodeon's kidvid qualities, using the first release specific for 2014. Dauman also noted that Componen has three more DWA photos release a under its existing pact, including "Puss in Boots" later this season.InchThe idea (that) there is any type of friction regarding the distribution from the films under this arrangement is fantasy since the relationship is excellent,Inch Dauman stated. "The only real problem is exactly what DreamWorks Animation really wants to do smartly -- and just how that matches along with our very own proper objectives. And that is all there's into it.InchViacom's solid earnings assisted the stock recover a bit of the floor lost in last Thursday's market slide. Shares were up 83 cents in the close of buying and selling Friday to $44.93, after shedding 6% the day before. Contact Cynthia Littleton at cynthia.littleton@variety.com