ASSIGNMENT

1

ME

G,

KA

YL E

I GH

AN

D J

ES

S

Viacom vs. Vertigo

VIACOM- THE HISTORY

In 1971, Viacom establishes itself as a public company, after previously being apart of Columbia Broadcasting System (CBS).

In 1985, Viacom comes to own 66% of MTV Networks. By 1986, Viacom have bought the remaining 34% of MTV. This set them back $185,000.

In 1987, National Amusements, Inc., acquires 83% of Viacom.

In 1994, Viacom completes a $9.9 billion merger with Paramount communications. In 2006 Paramount pictures acquires DreamWorks.

In 1999, Viacom starts trading on the New York stock exchange.

In 2000, Viacom completes a $39.8 billion merger with CBS Corporation.

In 2003, Viacom purchases the remaining 50% interest in Comedy Central for $1.2 billion.

Now, Viacom has forms Viacom International Media Networks (VIMN)

WHERE IN THE WORLD?

Where its based? New York

Where it has relations? :

A joint venture with TV-18 in India

Viacom expanded MTV and launched MTV Europe.

MTVN launches a MTV base in Africa. They also had a joint venture MTV group Japan.

WHO OWNS VIACOM? WHAT VIACOM OWNS?Viacom is owned by a number of people. Phillip Dauman is the president and

the CEO since 2006. Robert Bakish holds the same position, but for Viacom International Media Networks.

Viacom is known as the ‘parent company’, meaning no one owns it, but it owns many other companies, all in different media sectors. These include:

Viacom

Publishing

Online

FilmTV

Radio

Comedy Central

MTV

Nickelodeon

Paramount comedy

MTV Radio

BET Radio

The extreme music library

Directors cuts production music

Paramount Pictures

MTV Films

www.addictinggames.com

www.comedycentral.com

www.atomfilms.com

STRUCTURE

Viacom

Paramount

Paramount Pictures

Epix

Nickelodeon

TV success

Paranormal Activity 2

Jackass 3D

Logo design- ‘Ezee Trophies’

Teenage mutant ninja turtles!

Paranormal Activity 2 trailer

http://www.youtube.com/watch?v=07XbSk7Rjt4&ob=av3e

VIACOM PRODUCTS

Addicting Games

Comedy Central

MTV

Nickelodeon/ Nick Jr

Paramount Pictures

MTV Films

Neopets

VIACOM NEWShttp://topics.nytimes.com/top/news/business/companies/viacom_inc/index.html

http://articles.chicagotribune.com/keyword/viacom

The New York Times: Viacom Inc.

The New York Times has an article called Viacom Inc. that describes the company. ‘It’s an entertainment content company that provides programming for cable and satellite television, motion pictures and digital products.’

 

Chicago Tribune: Viacom to sell TV stations

The Chicago Tribune has an article called ‘Viacom to sell TV stations’ which explains how they wanted to sell their television networks.

‘Viacom is interested in selling the stations at a price close to $400 million.’

VERTIGO- THE HISTORY

Vertigo is the independent company that we have decided to look at.

A brief history of Vertigo.

Vertigo Films was founded in July 2002 to create and distribute commercially driven independent cinema. It was created by Nick Love, James Richardson, Rupert Preston and Rob Morgan.

Its current goal is to produce and distribute four films per year.

Vertigo currently has 36 films out on DVD. They have even set up their own Youtube channel, Facebook page and twitter Facebook page.

2010 was an extremely special year for Vertigo. They distributed Europe’s 3D live action movie – Streetdance 3D, entering the UK box office at number 1 beating Disney’s Prince of Persia and becoming one of the most successful UK independent films of all time as it opened around the world.

 

Where they are based.

Vertigo films are based in Kentish town, London.

 

Link to twitter page: https://twitter.com/#!/vertigofilms

STRUCTURE

Key players:

Nick Love (Writer/Director/Producer)

Allan Niblo (Producer)

James Richardson (Producer)

Rupert Preston (Oversees distribution activities but also acts as Producer)

Rob Morgan (Managing Director)

Nigel Williams (Pursued a number of business interests across film, property and investment management)

BUSINESS ACTIVITYBig screen adaptation for THE SWEENEY, and the production of

Streetdance 2 is currently in progress.

Vertigo Owns The Post Republic, which is a state of the art post production company based in Berlin.

Vertigo is also partnered with Protagonist Pictures, which is a distribution company.

Vertigo also partnered with LA based 3D experts Paradise FX and they set up PFXE, which is considered Europe’s most experiences 3D facilities company.Other Links:

Protagonist Pictures: www.protagonistpictures.comThe Post Republic: www.post-republic.deScreen WM: www.screemwm.co.ukEM Media: www.em-media.org,ukFilm 4: www.filmfour.combLinQue LONDON: www.blinque.co.uk

PRODUCTS

• Point blank

• Street Dance 3D

• The Firm

• Wakewood

• The Children

• Outlaw

• Retreat

STREET DANCE 3D TRAILER

http://www.youtube.com/watch?v=cra8n0h3VAY&feature=fvsr

NEWSWORTHY?

http://search.proquest.com/uknews/docview/250296534/1331C4AECC928199C93/1?accountid=

17037

‘The producer, London independent production company Vertigo Films with the BBC, could scarcely have dreamt how street dance would win the nation's hearts when they conceived the project two years ago’

http://search.proquest.com/uknews/docview/517384309/1331C5A284561E938D4/6?accountid=

17037

‘And makers Vertigo Film are said to be looking for British talent to play Henry and his pals.

Director Nick Moore, who made his debut with teen movie Wild Child, said: "We are very excited at the prospect of creating something wonderful that will delight Henry's existing fans as well as introducing him to a whole new audience.”’

CONCERNS

As with any independent company, the main concern is that Vertigo will release too many risky movies, and then go bankrupt.

Another concern is being bought out by a conglomerate, which probably won’t happen with Vertigo

Production of The Sweeney. Originally DNA, who are owned by Fox Searchlight, who are a subsidiary of NewsCorp owned the rights to The Sweeney. Vertigo and DNA were going to make the film together. After years of pre-production, DNA started to get nervous about budgets and the cast. So eventually, DNA pulled out, Vertigo bought the rights as a cost and now Vertigo are making the film themselves. They still have a connection with DNA during the distribution. The concern here is if The Sweeney is a flop, then Vertigo will lose money.

VIACOM VS. VERTIGO

There are many differences between Viacom and Vertigo, but the main differences are the size difference and money. Because Viacom has so much money, they have bigger production values, better marketing and distribution, which can lead to globalization, because they have the money to distribute their products worldwide.

However, Vertigo has a much smaller budget on their movies, meaning there will be less of a range of products, mainly because they don’t have the money to produce different genres with too many screen plays and CGI effects, because they would have to pay another company to do the effects. However, another difference between Vertigo and Viacom is that Viacom has cross media ownership, meaning they own different companies which produce difference products for the media industry. For example, Viacom owns distribution companies, marketing companies etc., because they have subsidiaries such as paramount pictures. This means there are no extra costs to pay for a company.

VIACOM VS. VERTIGOThe way in which both a conglomerate and a independent

company advertises is also different, and this is due to money. Viacom are able to advertise their products on TV, and also during peak times, when more people watch TV. Viacom can also potentially sell advertising space to their competitors: The rest of the ‘Big 6’ and independent companies, such as Vertigo. This is vertical integration because they can support each other and their small companies. This is an advantage to conglomerates because if they have a business idea which goes wrong, they have their other companies to supports them, and even though they will lose money, they will not go bankrupt.

However, if Vertigo were to have a business idea that doesn’t work, they will have nobody to help and they business will go bankrupt. Vertigo also doesn’t have enough money to buy advertising space on TV, so they have to advertise cheaply. This means via social networking sites, such as Facebook and MySpace pages. Though they have no choice but to advertise cheaply, they are trying hard to compete with the conglomerates. An example of this is Street Dance 3D, as this went to America and made more money than most of their other business ventures did.

Another part of the media industry that conglomerates can achieve is horizontal integration, unlike independent companies. Viacom owns MTV, comedy central and Nickelodeon. All of these produce different genres of TV shows: MTV does some real life programs, comedy central does comedy (duh!) and Nickelodeon makes children's programs. This is so they can appeal to a wider audience. Again, because of money, Vertigo cannot afford to own other companies that make films, so they have to do it all themselves.

VIACOM VS. VERTIGO

Viacom is also an example of a monopoly. They bought out MTV Networks in two stages. The first in a chunk of 66%, and the next in 34%. This is also an example of a takeover. This is a disadvantage to the audience because people will have less variety and a choice in what they get to watch. This also links with Viacom being an oligopoly because they are one of the big 6, who between them own the majority of media sectors, if not all. This doesn’t really apply to an independent company because they do not have enough money to take over other businesses. However, they do have ‘alliances’ with other companies, such as Protagonist Pictures.